GHTIX — Leland Real Asset Opportunities Fund

GHTIX Fund Overview

GHTIX — Leland Real Asset Opportunities Fund is a US mutual fund managed by Northern Lights Fund Trust III, categorised as Value Equity. 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: Value Equity
• Assets under management: $7.22M
• Ticker: GHTIX
• SEC CIK: 0001537140
• SEC series ID: S000042253
• Share class ID: C000131136

GHTIX Investment Objective and Strategy

Leland Real Asset Opportunities Fund describes its objective and strategy as follows, from its latest prospectus filed with the SEC by Northern Lights Fund Trust III.

Investment objective

Total return from capital appreciation with an emphasis on income.

Principal investment strategy

Using a fundamental and quantitative approach, the Adviser seeks to achieve the Funds investment objective by tactically allocating the portfolio during favorable periods to equity investments whose revenues and earnings are derived from tangible assets, often referred to as real assets, such as real estate, infrastructure and basic materials that provide a steady dividend payout. Real estate companies are generally involved in the purchase, ownership, management, rental and/or sale of real estate. Infrastructure companies are generally engaged in providing essential services (such as electric, gas and water utilities), transport (such as toll roads, bridges, tunnels, rail, airports and ports), communications (such as satellite, wireless and other communications networks) and commodity and social infrastructure (education, public housing, prison and athletic facilities).

Basic materials companies are generally engaged in the manufacture, mining, processing, or distribution of raw materials and intermediate goods used in the industrial sector, and may be involved in the production and transportation of metals, textiles, and wood products. Under normal circumstances, the Fund will invest at least 80% of its net assets, plus any borrowings for investment purposes, in these real asset investments. The allocation to equities is supplemented by an option strategy designed to produce income, enhance returns or limit equity losses. During less favorable periods or when attractive investment opportunities are scarce, the Adviser will seek to reduce equity exposure and allocate the Funds assets to investment grade fixed income securities of any maturity or duration.

The Fund will primarily invest in equity securities. Equity securities may include common and preferred stock, American Depositary Receipts (ADRs), Master Limited Partnerships (MLPs), real estate investment trusts (REITs), ETFs or exchange traded notes (ETNs). The Fund may invest no more than 25% of its total assets in the securities of MLPs and other entities treated as qualified publicly traded partnerships. Option investments may include writing (selling) covered call options, purchasing calls and puts and making collar or spread trades. Fixed income investments will generally include ETFs that track a treasury bond index and money market funds. The Fund may invest in derivative investments such as swaps, structured notes, futures and options designed to provide exposure to a particular equity investment, option or a treasury bond index or to replicate the returns of such investment.

The Fund seeks to outperform the S&P 500 Total Return Index over a full market cycle. Advisers Investment Process. The Adviser utilizes a flexible multi-step approach to determine appropriate investments for the Fund. The Funds investment strategy typically results in a portfolio turnover rate in excess of 100% on an annual basis. Real Asset Equities. First, the Adviser identifies a specific security universe, limited to companies whose earnings are based on real assets, and in which there is both moderate growth and an active options market. Next, the Adviser refines this universe by limiting it to companies that possess certain inherent characteristics, which may include those companies paying an attractive yield, those providing a steady dividend payout, those with stable management histories, those with a significant presence in their industry and those with very stable cash flows.

The remaining investments are identified through rigorous fundamental research that seeks to discover principally sound companies that are trading at low valuations not due to serious issues, but as a result of risk aversion arising from temporary factors, as in a misunderstanding of company-specific risk, or an industry/sector falling out of favor. Among the equity securities identified, the Adviser may tactically adjust the portfolio among sector and industry exposure. Options and Fixed Income Investments. Following the security analysis, the Adviser will determine whether to add options to accelerate returns, limit the downside of certain equity investments or generate income. During unfavorable periods or during periods of scarce attractive equity investments, the Adviser may reduce equity exposure and allocate the portfolio to fixed income investments.

Risk Monitoring. The Adviser frequently evaluates portfolio-level risk by applying certain quantitative measures to determine the appropriate allocation among equities, options and fixed income investments. The Adviser will tactically allocate the portfolio based in part on these quantitative measures. Portfolio Allocation. The Adviser utilizes a fundamental and quantitative approach to tactically allocate the Funds portfolio among its investments. At any given time, the Funds portfolio will be invested in equities and options, fixed income investments, or among equities, options and fixed income investments. The allocation among these investments will depend upon a number of factors, including the Advisers determination of the favorability of investing in tangible asset equities. Within the Funds allocations to equities, the Adviser may allocate the portfolio among different tangible asset sectors and industries.

The Fund is non-diversified for purposes of the 1940 Act, as amended, which means that the Fund may invest in fewer securities at any one time than a diversified fund.

GHTIX Costs and Fees

GHTIX costs about $159 per $10,000 invested per year in fund expenses.

• Net expense ratio: 1.59%
• Gross expense ratio: 1.65%
• Portfolio turnover: 50%
• Brokerage commissions: 12.85 bps of average net assets (SEC N-CEN)

GHTIX Cashflows

Over the 12 months to 2020-06, Leland Real Asset Opportunities Fund had net inflows of $5.06M, from monthly SEC N-PORT filings.

GHTIX Debt Constituents

No individual debt constituents are reported in Leland Real Asset Opportunities Fund's latest SEC N-PORT filing.

GHTIX Prospectus and SEC Filings

Official Leland Real Asset Opportunities 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 2020-08-28
• Portfolio holdings (N-PORT) — filed 2020-05-22
• Annual census (N-CEN) — filed 2019-12-16
• Annual census (N-CEN) — filed 2018-12-14

Related Funds

Other Value Equity funds tracked on ABC INVEST:

• ICON Fund (ICNCX)
• American Beacon The London Company Income Equity ETF (TLIE)
• FT Vest Laddered Autocallable Buffer & Resilient Income ETF (ACYB)
• Janus Henderson International Equity Enhanced Income ETF (JIDO)
• Principal Finisterre Emerging Markets Diversified Income ETF (EMDI)

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.