ASUIX — Arabesque Systematic USA Fund

ASUIX Fund Overview

ASUIX — Arabesque Systematic USA Fund is a US mutual fund managed by FundVantage Trust, categorised as Capital Appreciation / Growth Allocation. ABC INVEST provides holdings, performance, costs, cashflows, risk data, prospectus documents and SEC filings, sourced from SEC filings.

• Type: US mutual fund
• Manager: FundVantage Trust
• Category: Capital Appreciation / Growth Allocation
• Assets under management: $28.39M
• Ticker: ASUIX
• SEC CIK: 0001388485
• SEC series ID: S000056994
• Share class ID: C000181042

ASUIX Investment Objective and Strategy

Arabesque Systematic USA Fund describes its objective and strategy as follows, from its latest prospectus filed with the SEC by FundVantage Trust.

Investment objective

Arabesque Systematic USA Fund (the Fund) seeks capital appreciation over the full market cycle with below benchmark levels of risk.

Principal investment strategy

Under normal circumstances the Fund invests in a portfolio consisting of equity securities (depository receipts, preferred stock, as well as common stock) of US issuers and U.S. dollar denominated cash and cash instruments. The Fund typically maintains between 0% and 100% of its assets in the equity portion of its portfolio (the equity portfolio) and between 0% and 100% in the cash portion of its portfolio (the cash portfolio); however, the Adviser will rebalance the Funds assets daily and may allocate between 0% and 100% of its assets in either the equity portfolio or the cash portfolio. The Fund may invest in either cash or equity securities at any level determined by the Adviser. The Fund aims to provide risk-controlled equity upside exposure by dynamically allocating between equities and cash.

The investment process is systematic and based on a set of rules which are implemented by quantitative processes overseen by Arabesques investment committee. This rules-based investment strategy combines a proprietary analysis of relevant non-financial issues, such as environmental, social and governance (ESG) risks, with a rules-based fundamental security analysis and a systematic asset allocation and risk management strategy. The systematic investment strategy consists of three main components: (1) Construction of the Investment Universe, (2) Asset Allocation and (3) Stock Selection. (1) Construction of the Investment Universe: The Fund considers all publicly listed US equities. The Fund combines Arabesque S-Ray , Arabesques proprietary assessment of non-financial risk factors such as environmental, social and governance (ESG) issues as well as alignment with the principles of the UN Global Compact, with liquidity parameters such as market capitalization, daily turnover and free float to identify the Funds investment universe of eligible US equity securities.

While market capitalization is considered with respect to an issuers liquidity and the Advisers assessment of risk, the Fund may invest in any publicly listed equity security regardless of market capitalization. The Fund does not consider companies that generate more than 5% of their revenues from weapons, gambling or tobacco. Additionally, such factors are a component in the Advisers security selection process, described below. The identification of the Funds investment universe of eligible US equity securities is performed quarterly. The Adviser uses recently released publicly available information from an issuer or a third-party data provider to construct the Funds investment universe and, while the Adviser believes that such information is generally reliable, the Adviser is not responsible for the accuracy of such information.

(2) Asset Allocation: On a daily basis, the Fund assesses the equity market risk and calculates the allocation between equity securities and cash for the Fund. The assessment is performed with a rules-based procedure. The allocation into equity securities ranges from 0% to 100% with the remainder of the Funds NAV invested into cash and cash instruments. (3) Stock Selection: After determining the allocation to the equity portfolio, the Fund then selects securities with an initial target weight ranging from 0% to 2% per position from the investment universe. The stock selection is based on a rules-based portfolio optimization taking into consideration price information, financial data, analyst estimates and transaction costs. The Funds stock selection process generally favors stocks with a positive price momentum.

Every stock in the portfolio has a risk-limit which leads to the selective selling of stocks, which have, in the Advisers view, a negative price momentum. The combination of both effects typically leads to a Moderate Growth bias of the Funds stock portfolio. In certain instances, the Fund may use derivatives, such as options and futures contracts, as a substitute for direct investment in equity securities. This would be done to facilitate the periodic rebalancing of the Funds portfolio in order to maintain its target allocation and assist in managing cash.

ASUIX Holdings

Top 10 holdings of Arabesque Systematic USA Fund by percentage of net assets, from the fund's latest SEC N-PORT filing.

View all ASUIX holdings

ASUIX Portfolio Allocation

Asset-class allocation of Arabesque Systematic USA Fund by percentage of net assets, from the latest SEC N-PORT filing.

ASUIX Costs and Fees

ASUIX costs about $95 per $10,000 invested per year in fund expenses.

• Net expense ratio: 0.95%
• Gross expense ratio: 1.44%
• Portfolio turnover: 307%
• Brokerage commissions: 16.56 bps of average net assets (SEC N-CEN)

ASUIX Cashflows

Over the 12 months to 2020-06, Arabesque Systematic USA Fund had net inflows of $11.53M, from monthly SEC N-PORT filings.

ASUIX Debt Constituents

No individual debt constituents are reported in Arabesque Systematic USA Fund's latest SEC N-PORT filing.

ASUIX Prospectus and SEC Filings

Official Arabesque Systematic USA Fund filings on SEC EDGAR — prospectus, portfolio holdings and annual reports.

• Prospectus (485BPOS) — filed 2020-02-20
• Prospectus (485BPOS) — filed 2019-02-22
• Prospectus (485BPOS) — filed 2018-09-07
• Portfolio holdings (N-PORT) — filed 2020-08-25
• Portfolio holdings (N-PORT) — filed 2020-05-20
• Annual census (N-CEN) — filed 2019-12-13
• Annual census (N-CEN) — filed 2018-12-14

Related Funds

Other Capital Appreciation / Growth Allocation funds tracked on ABC INVEST:

• Catalyst/Millburn Hedge Strategy Fund (MBXAX)
• Roundhill Magnificent Seven ETF (MAGS)
• SPDR Bridgewater All Weather ETF (ALLW)
• Capital Appreciation Value Fund (JCAVX)
• Goldman Sachs Growth Strategy Portfolio (GGSIX)

Data Sources

ABC INVEST compiles this page from public filings made to the U.S. Securities and Exchange Commission (SEC) through EDGAR: portfolio holdings and monthly cashflows from Form N-PORT, expenses and returns from fund prospectuses (Form 485BPOS) and the SEC DERA Risk/Return Summary data sets, annual data from Form N-CEN, and shareholder reports from Form N-CSR.