Equinox Chesapeake Strategy Fund

C000161623 Fund Overview

Equinox Chesapeake Strategy Fund is a US mutual fund managed by Equinox Funds Trust, categorised as Money Market. ABC INVEST provides holdings, performance, costs, cashflows, risk data, prospectus documents and SEC filings, sourced from SEC filings.

• Type: US mutual fund
• Manager: Equinox Funds Trust
• Category: Money Market
• Assets under management: $95.74M
• SEC CIK: 0001498272
• SEC series ID: S000033104
• Share class ID: C000161623

C000161623 Investment Objective and Strategy

Equinox Chesapeake Strategy Fund describes its objective and strategy as follows, from its latest prospectus filed with the SEC by Equinox Funds Trust.

Investment objective

The Equinox Chesapeake Strategy Fund (the Fund) seeks to achieve long-term capital appreciation.

Principal investment strategy

Please refer to the section entitled Key Terms below for additional information on highlighted terms. The Fund pursues its investment objective by making a combination of investments (i) directly in an actively managed fixed-income portfolio (typically U.S. Treasuries and other short-term U.S. government obligations) comprised of cash, cash equivalents, securities issued by the U.S. government with one year or less term to maturity and money market funds and (ii) directly or indirectly in a diversified portfolio of futures contracts and futures-related instruments such as forwards and swaps in broadly diversified global (i.e. U.S. and non-U.S.) markets across a wide range of asset classes, including equities, fixed income, currencies and commodities, utilizing a portfolio of futures, forwards, options, spot contracts and swaps (the Futures Portfolio).

The Fund either invests directly in those instruments, or indirectly by investing via a swap or via its wholly-owned subsidiary (the Subsidiary) which may then invest in such assets directly or indirectly. The Funds Adviser delegates the management of the Futures Portfolio to a sub-adviser, Chesapeake Capital Corporation (the Sub-Adviser). The Sub-Adviser will manage the Futures Portfolio and the Subsidiarys Futures Portfolio by applying the Chesapeake Program. The Chesapeake Program is a long-term trend following program that utilizes trading systems across a broadly diversified set of markets with a systematic trading approach, focusing on capital preservation while attempting to provide positive annual returns. The Sub-Adviser analyzes markets, including price movement, market volatility, open interest, and volume, as a means of predicting market opportunity and discovering any repeating patterns in past historical prices.

The scope of markets that may be accessed includes stock indices, single stock futures, interest rates, currencies, and commodities. The Chesapeake Program may also invest directly in long and short positions of U.S. and non-U.S. equity securities as part of its broader trend following program. The direct investments in equity securities will typically not exceed 30% of the Funds total assets. The Fund may make some or all of its investments in the Futures Portfolio through the Subsidiary and may invest up to 25% of its total assets in the Subsidiary. Generally, the Subsidiary will primarily invest directly or indirectly in commodity futures, but it may also invest in swaps, financial futures, foreign exchange currency forwards, U.S. government securities, money market funds, and/or other investments intended to serve as margin or collateral for the Subsidiarys derivative positions.

Through investing in the Subsidiary, the Fund, will among other things, be able to gain exposure to the commodities markets within the limitations of the federal tax laws, rules and regulations that apply to registered investment companies. To the extent they are applicable to the investment activities of the Subsidiary, the Subsidiary will be subject to the same investment restrictions and limitations, and follow the same compliance policies and procedures, as the Fund. Unlike the Fund, the Subsidiary may invest without limitation in commodity-linked derivative instruments (including commodity futures), however, the Subsidiary will comply with the same asset coverage requirements imposed by the Investment Company Act of 1940, as amended (the 1940 Act) with respect to its investments in commodity-linked derivatives (including commodity futures) that are applicable to the Funds transactions in derivatives.

Unlike the Fund, the Subsidiary will not seek to qualify as a regulated investment company under Sub-chapter M of the Internal Revenue Code of 1986, as amended (the Code). The Fund is the sole shareholder of the Subsidiary and does not expect shares of the Subsidiary to be offered or sold to other investors. KEY TERMS A futures contracts Open Interest is the total number of the contracts long or short in a delivery month or market that has been entered into and not yet liquidated by an offsetting transaction or fulfilled by delivery. Systematic Trading is a trading strategy that employs computer-driven, mathematical models to identify when to buy or sell an instrument according to rules determined before a trade is made; generally with little or no human intervention once a mathematical formula has been entered.

Technical Analysis is a method of evaluating an investment opportunity by using charts or computer programs to identify patterns in market data, such as price change, rates of change, and changes in volume of trading, open interest and other statistical indicators, in order to project the direction that a market or the price of an investment will move. Technical analysis does not take into account fundamental market factors, such as supply and demand. A Trend Following strategy generally seeks to identify the general direction of one or more global market segments (either up or down) using indicators such as current market prices and moving average prices, and buy or sell investments based on the assessment of these trade signals as determined before a trade is made. Trend-following generally focuses on the direction an investment or global market segment already has gone and not on the direction it may go.

The Funds return will be derived principally from changes in the value of securities and derivatives of securities held in the Funds portfolio (including its investment in the Subsidiary), and the Funds assets will consist principally of securities. The Adviser may engage in frequent buying and selling of portfolio holdings to achieve the Funds investment objective.

C000161623 Costs and Fees

C000161623 costs about $204 per $10,000 invested per year in fund expenses.

• Net expense ratio: 2.04%
• Gross expense ratio: 2.04%
• Portfolio turnover: 13%
• Brokerage commissions: 30.57 bps of average net assets (SEC N-CEN)

C000161623 Cashflows

Over the 12 months to 2019-09, Equinox Chesapeake Strategy Fund had net inflows of $42.68M, from monthly SEC N-PORT filings.

C000161623 Debt Constituents

No individual debt constituents are reported in Equinox Chesapeake Strategy Fund's latest SEC N-PORT filing.

C000161623 Prospectus and SEC Filings

Official Equinox Chesapeake Strategy Fund filings on SEC EDGAR — prospectus, portfolio holdings and annual reports.

• Prospectus (485BPOS) — filed 2019-02-14
• Prospectus (485BPOS) — filed 2018-02-05
• Prospectus supplement (497) — filed 2017-08-03
• Portfolio holdings (N-PORT) — filed 2019-11-27
• Annual census (N-CEN) — filed 2018-12-14

Related Funds

Other Money Market funds tracked on ABC INVEST:

• Emerald Growth Fund (HSPCX)
• Barings Active Short Duration Bond Fund (BXDIX)
• IVA Worldwide Fund (IVWAX)
• Stadion Tactical Growth Fund (ETFDX)
• BBH Partner Fund - Select Short Term Assets (BBSTX)

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.