Leland Thomson Reuters Venture Capital Index Fund
Data updated: 2020-12-14
C000158909 — Leland Thomson Reuters Venture Capital Index Fund. Leveraged · $241.75M AUM · 1.51% expense ratio. Holdings, fees, performance and SEC filings.
C000158909 Fund Overview
Leland Thomson Reuters Venture Capital Index Fund is a US mutual fund managed by Northern Lights Fund Trust III, categorised as Leveraged. ABC INVEST provides holdings, performance, costs, cashflows, risk data, prospectus documents and SEC filings, sourced from SEC filings.
- Type: US mutual fund
- Manager: Northern Lights Fund Trust III
- Category: Leveraged
- Assets under management: $241.75M
- SEC CIK: 0001537140
- SEC series ID: S000050335
- Share class ID: C000158909
C000158909 Investment Objective and Strategy
Leland Thomson Reuters Venture Capital Index Fund describes its objective and strategy as follows, from its latest prospectus filed with the SEC by Northern Lights Fund Trust III.
Investment objective
The Fund seeks to provide investment results that, before fees and expenses, correspond generally to the price performance of a specific benchmark designed to track the aggregate performance of U.S. venture capital-backed companies. The Funds current benchmark is the Thomson Reuters Venture Capital Index (the Underlying Index).
Principal investment strategy
The Fund seeks to provide investment results that, before fees and expenses, correspond generally to the price performance of the Thomson Reuters Venture Capital Index (the Underlying Index). The Underlying Index seeks to replicate the aggregate gross performance of U.S. venture capital-backed companies. However, the Fund does not invest directly in venture capital funds or start-up companies. In seeking to track the Underlying Index, the Fund invests in a wide range of financial instruments, including liquid, publicly-traded equities which are either components of the theoretical portfolio or determined by the Adviser to have substantially similar risk and return characteristics, in aggregate, as the Underlying Index. The Fund also invests in total return swap agreements designed to provide exposure to the characteristics of venture capital-backed companies and will have the effect of adding economic leverage to the portfolio.
Under normal circumstances, the Fund will invest at least 80% of its net assets, plus any borrowings for investment purposes, in securities and financial instruments that compose the Underlying Index. This policy is not fundamental and may be changed by the Board of Trustees upon 60 days written notice to shareholders. The Funds swap agreements will create economic leverage in the Funds portfolio. Leverage may magnify, sometimes significantly, the Funds exposure to any increase or decrease in prices associated with the assets held by the Fund resulting in increased volatility in the value of the Funds portfolio. While the use of leverage has the potential to produce greater gains, it also may result in greater losses. The Funds investments in swap agreements are subject to limits on leverage imposed by the 1940 Act and related SEC guidance.
To comply with SEC guidance, the Fund generally will be required to segregate or earmark liquid assets or enter into offsetting positions to cover its derivatives positions. The Fund also may invest in other investment companies, including exchange traded funds ETFs, to gain exposure to the returns of the Underlying Index. To the extent the Underlying Index is concentrated in a particular industry the Funds investment exposure will necessarily be concentrated in that industry. Currently, the Underlying Index has significant exposure to the industries within the technology and healthcare sectors. The Fund is a commodity pool under the CEA, and the Adviser is a commodity pool operator registered with and regulated by the CFTC. As a result, additional CFTC-mandated disclosure, reporting and recordkeeping obligations apply with respect to the Fund under CFTC and SEC harmonized regulations.
The Funds investment strategy typically results in a portfolio turnover rate in excess of 100% on an annual basis. The Fund is classified as non-diversified for the purposes of 1940 Act, which means a relatively high percentage of the Funds assets may be invested in the securities of a limited number of companies that could be in the same or related economic sectors.
C000158909 Costs and Fees
C000158909 costs about $151 per $10,000 invested per year in fund expenses.
- Net expense ratio: 1.51%
- Gross expense ratio: 1.82%
- Portfolio turnover: 115%
- Brokerage commissions: 2.35 bps of average net assets (SEC N-CEN)
C000158909 Cashflows
Over the 12 months to 2020-09, Leland Thomson Reuters Venture Capital Index Fund had net inflows of $272.63M, from monthly SEC N-PORT filings.
| Month | Net flow |
|---|---|
| 2020-09 | $22.97M |
| 2020-08 | $20.38M |
| 2020-07 | $22.07M |
| 2020-06 | $36.85M |
| 2020-05 | $30.25M |
| 2020-04 | $24.12M |
C000158909 Debt Constituents
No individual debt constituents are reported in Leland Thomson Reuters Venture Capital Index Fund's latest SEC N-PORT filing.
C000158909 Prospectus and SEC Filings
Official Leland Thomson Reuters Venture Capital Index Fund filings on SEC EDGAR — prospectus, portfolio holdings and annual reports.
- Prospectus (485BPOS) — filed 2020-02-14
- Prospectus supplement (497) — filed 2020-03-03
- Prospectus supplement (497) — filed 2019-03-06
- Portfolio holdings (N-PORT) — filed 2020-11-25
- Portfolio holdings (N-PORT) — filed 2020-08-28
- Portfolio holdings (N-PORT) — filed 2020-05-22
- Annual census (N-CEN) — filed 2020-12-14
- Annual census (N-CEN) — filed 2019-12-16
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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.