FARAX — Fulcrum Diversified Absolute Return Fund

FARAX Fund Overview

FARAX — Fulcrum Diversified Absolute Return Fund is a US mutual fund managed by Northern Lights Fund Trust IV, categorised as Ultra-Short Treasury / Sovereign Bond. 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 IV
• Category: Ultra-Short Treasury / Sovereign Bond
• Assets under management: $318.61M
• Ticker: FARAX
• SEC CIK: 0001644419
• SEC series ID: S000079520
• Share class ID: C000240583

FARAX Investment Objective and Strategy

Fulcrum Diversified Absolute Return Fund describes its objective and strategy as follows, from its latest prospectus filed with the SEC by Northern Lights Fund Trust IV.

Investment objective

The investment objective of the Fulcrum Diversified Absolute Return Fund (the ?Fund?) is to achieve long-term absolute returns.

Principal investment strategy

The Fund aims to hold a diversified portfolio and achieve long-term absolute returns in all market conditions over rolling five-year periods, with lower volatility than equity markets and in excess of inflation. The Fund implements its strategy by investing globally either directly, or through derivatives, in a broad range of instruments, including, but not limited to, equity, fixed income, currency, commodity, credit derivative and cash instruments (including U.S. treasury bills). The Fund may invest in fixed income securities of any credit rating, maturity or duration. Fixed income securities may include floating rate and variable rate products. Derivatives, including futures, forwards, options and swaps, are utilized for investment and for hedging purposes. Derivatives are financial contracts whose value depends upon, or is derived from, the value of an underlying asset, reference rate, or index, and may relate to equity securities, fixed income securities, interest rates, commodities, or currency exchange rates and related indexes.

Swaps may include, but are not limited to, currency swaps, equity index swaps, interest rate swaps and credit default index swaps. The Fund is managed with an aim to limit forward looking volatility to 12%, which is expected to be lower than the volatility of equity markets. Forward looking volatility refers to the estimated volatility that a portfolio is taking based on short - term volatility forecasts, such as those implied from option prices. By aiming to limit forward looking volatility to 12%, exposure to equities, commodities and credit, for example, are limited at times of market stress when volatility typically spikes and the probability of losses is especially high. On an intra-day basis, forward looking volatility may exceed 12%, but a risk reduction is implemented such that it falls below 12% by the close of each trading day.

The Fund may also invest up to 25% of its assets in a subsidiary that is invested in derivative instruments (the ?Subsidiary?), which is wholly-owned by the Fund and is organized under the laws of the Cayman Islands. The Fund does not control any other entity. The Subsidiary pursues the same investment objective as the Fund. The Subsidiary invests primarily in commodity futures and options and other commodity-linked derivative instruments, but it may also invest in financial futures, option and swap contracts, fixed income securities, and other investments intended to serve as margin or collateral for the Subsidiary?s derivative positions. The Fund invests in the Subsidiary with the intent of gaining exposure to the commodities markets while meeting the requirements applicable to a regulated investment company (?RIC?) under Subchapter M of the Internal Revenue Code of 1986, as amended (the ?Internal Revenue Code?).

Unlike the Fund, the Subsidiary may invest without limitation in commodity-linked derivatives. Under normal circumstances, the Fund anticipates to allocate at least 50% of its total assets in global securities outside of the United States (or derivatives with similar economic characteristics). In doing so, the Fund allocates its assets among various regions and countries, including emerging markets.

FARAX Holdings

Top 10 holdings of Fulcrum Diversified Absolute Return Fund by percentage of net assets, from the fund's latest SEC N-PORT filing.

View all FARAX holdings

FARAX Portfolio Allocation

Asset-class allocation of Fulcrum Diversified Absolute Return Fund by percentage of net assets, from the latest SEC N-PORT filing.

FARAX Performance

Total returns for FARAX (as of 2026-10-01), from SEC filings.

FARAX Risk Information

Risk metrics for FARAX, derived from monthly returns in SEC filings.

• 1-year volatility (annualised): 9.1%

FARAX Costs and Fees

FARAX costs about $160 per $10,000 invested per year in fund expenses.

• Net expense ratio: 1.60%
• Gross expense ratio: 1.64%
• Portfolio turnover: 113%
• Brokerage commissions: 0.45 bps of average net assets (SEC N-CEN)

FARAX Cashflows

Over the 12 months to 2026-06, Fulcrum Diversified Absolute Return Fund had net inflows of $70.07M, from monthly SEC N-PORT filings.

FARAX Debt Constituents

Largest debt holdings of Fulcrum Diversified Absolute Return Fund by percentage of net assets, from the latest SEC N-PORT filing.

FARAX Prospectus and SEC Filings

Official Fulcrum Diversified Absolute Return Fund filings on SEC EDGAR — prospectus, portfolio holdings and annual reports.

• Prospectus (485BPOS) — filed 2025-10-23
• Prospectus (485BPOS) — filed 2024-10-24
• Prospectus supplement (497) — filed 2024-10-31
• Portfolio holdings (N-PORT) — filed 2026-08-25
• Portfolio holdings (N-PORT) — filed 2026-05-28
• Portfolio holdings (N-PORT) — filed 2026-02-26
• Annual census (N-CEN) — filed 2025-09-12
• Annual census (N-CEN) — filed 2024-09-13

Related Funds

Other Ultra-Short Treasury / Sovereign Bond funds tracked on ABC INVEST:

• Vanguard 0-3 Month Treasury Bill ETF (VBIL)
• US Treasury 3 Month Bill ETF (TBIL)
• Global X 1-3 Month T-Bill ETF (CLIP)
• Invesco Short Term Treasury ETF (TBLL)
• Abbey Capital Futures Strategy Fund (ABYAX)

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.