CPMNX — Convergence Market Neutral Fund
Data updated: 2021-02-11
CPMNX — Convergence Market Neutral Fund. Developed ex-US Blend / Core Equity · $23.81M AUM · 2.85% expense ratio. Holdings, fees, performance and SEC filings.
CPMNX Fund Overview
CPMNX — Convergence Market Neutral Fund is a US mutual fund managed by Trust For Professional Managers, categorised as Developed ex-US Blend / Core Equity. ABC INVEST provides holdings, performance, costs, cashflows, risk data, prospectus documents and SEC filings, sourced from SEC filings.
- Type: US mutual fund
- Manager: Trust For Professional Managers
- Category: Developed ex-US Blend / Core Equity
- Assets under management: $23.81M
- Ticker: CPMNX
- SEC CIK: 0001141819
- SEC series ID: S000052122
- Share class ID: C000164028
CPMNX Investment Objective and Strategy
Convergence Market Neutral Fund describes its objective and strategy as follows, from its latest prospectus filed with the SEC by Trust For Professional Managers.
Investment objective
The investment objective of the Convergence Market Neutral Fund (the Fund or Market Neutral Fund) is to seek positive absolute returns.
Principal investment strategy
The Fund seeks to achieve its investment objective by establishing long and short positions in equity securities of domestic and foreign companies that are deemed to be attractive (and likely to increase in price), or unattractive (and likely to decrease in price). The Fund is designed to be market neutral, targeting a portfolio designed to generate positive absolute returns with low correlation to the U.S. equity market over a normal business cycle. The Fund focuses primarily on companies with medium and large market capitalizations, although the Fund may establish long and short positions in companies of any market capitalization. The Fund generally considers companies with medium and large market capitalizations to be those companies that comprise the upper half of the Russell 3000 Total Return Index.
As of January 31, 2018, the market capitalization range of the upper half of the Russell 3000 Total Return Index was between $1.8 billion and $851.7 billion. The Fund will hold long (purchase) securities that the Adviser believes will outperform the market, and will sell short securities it expects to underperform the market. The Adviser constructs the portfolio as an actively managed equity strategy that adapts to ever changing market dynamics through a market cycle. The Fund intends to maintain a net long exposure (the market value of long positions minus the market value of short positions) of approximately 0 to 20%. Under normal market conditions, the Funds long positions may range from 70% to 125% and its short positions may range from 60% to 100%. In making investment decisions for the Fund, the Adviser utilizes a bottom-up approach that focuses on the individual strengths of the underlying companies and the relative and absolute attractiveness (and unattractiveness) of the companies stocks.
Using a proprietary model, the Adviser first employs a quantitative method of analysis based on four broad categories: growth; valuation; behavioral; and risk. The Adviser seeks to maximize return while minimizing the risk assumed by the Fund by utilizing a dynamic model that actively measures the characteristics of stocks that the market is rewarding or punishing over the market cycle. The model then changes the relative weight assigned to each characteristic within the model before evaluating the relative attractiveness of the security for inclusion. The Adviser makes decisions to buy and sell securities according to this model. The Adviser expects the Funds active trading of portfolio securities may result in a portfolio turnover rate in excess of 100% on an annual basis.
CPMNX Costs and Fees
CPMNX costs about $285 per $10,000 invested per year in fund expenses.
- Net expense ratio: 2.85%
- Gross expense ratio: 2.85%
- Portfolio turnover: 290%
- Brokerage commissions: 30.04 bps of average net assets (SEC N-CEN)
CPMNX Cashflows
Over the 12 months to 2020-08, Convergence Market Neutral Fund had net inflows of $25.66M, from monthly SEC N-PORT filings.
| Month | Net flow |
|---|---|
| 2020-08 | $1.78M |
| 2020-07 | $949.97K |
| 2020-06 | $3.75M |
| 2020-05 | $1.95M |
| 2020-04 | $2.36M |
| 2020-03 | $14.87M |
CPMNX Debt Constituents
No individual debt constituents are reported in Convergence Market Neutral Fund's latest SEC N-PORT filing.
CPMNX Prospectus and SEC Filings
Official Convergence Market Neutral Fund filings on SEC EDGAR — prospectus, portfolio holdings and annual reports.
- Prospectus (485BPOS) — filed 2020-04-06
- Prospectus (485BPOS) — filed 2019-04-12
- Prospectus (485BPOS) — filed 2018-04-16
- Portfolio holdings (N-PORT) — filed 2020-10-29
- Portfolio holdings (N-PORT) — filed 2020-07-29
- Annual census (N-CEN) — filed 2021-02-11
- Annual census (N-CEN) — filed 2020-02-12
- Annual census (N-CEN) — filed 2019-02-12
Related Funds
Other Developed ex-US Blend / Core Equity funds tracked on ABC INVEST:
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.