MPYIX — Meritage Yield-Focus Equity Fund
Data updated: 2020-07-31
MPYIX — Meritage Yield-Focus Equity Fund. Emerging Markets Real Estate · $19.08M AUM · 1.08% expense ratio. Holdings, fees, performance and SEC filings.
MPYIX Fund Overview
MPYIX — Meritage Yield-Focus Equity Fund is a US mutual fund managed by Capitol Series Trust, categorised as Emerging Markets Real Estate. ABC INVEST provides holdings, performance, costs, cashflows, risk data, prospectus documents and SEC filings, sourced from SEC filings.
- Type: US mutual fund
- Manager: Capitol Series Trust
- Category: Emerging Markets Real Estate
- Assets under management: $19.08M
- Ticker: MPYIX
- SEC CIK: 0001587551
- SEC series ID: S000043367
- Share class ID: C000134273
MPYIX Investment Objective and Strategy
Meritage Yield-Focus Equity Fund describes its objective and strategy as follows, from its latest prospectus filed with the SEC by Capitol Series Trust.
Investment objective
The investment objective of the Meritage Yield-Focus Equity Fund (the “Yield-Focus Equity Fund” or the “Fund”) is to seek long-term growth of capital with an emphasis on high current income.
Principal investment strategy
Under normal circumstances, the Fund invests at least 80% of the value of its net assets (plus borrowings for investment purposes) in equity securities (80% Policy). The Fund must provide shareholders with 60 days prior written notice if its changes its 80% Policy. The Fund principally invests in the following exchange-traded equity securities (Equity Securities) and will generally limit its investment in each type of Equity Security to the corresponding range referenced below: Type of Equity Security Portfolio Investment Range (% of Total Assets) Common Stock 50%-100% Master Limited Partnerships (MLPs) 0%-25% Real Estate Investment Trusts (REITs) 0%-25% Convertible Preferred Stock 0%-15% Non-Convertible Preferred Stock 0%-15% Business Development Companies (BDCs) 0%-10% Limited Partnerships (other than MLPs) 0%-10% With respect to 10% of its total assets, the Fund may use exchange-traded funds (ETFs) to invest in particular sectors instead of investing directly in companies comprising those sectors.
MLPs are publicly traded partnerships that predominately operate, or directly or indirectly own, energy-related assets. REITs are companies that pool investor funds to invest primarily in income producing real estate or real estate related loans or interests. The Funds investment in equity interests of MLPs may include both general partnership interests and limited partnership interests of MLPs. BDCs are publicly-traded closed-end funds that seek capital appreciation and income by investing in smaller companies during their initial stages of development. With respect to investments in BDCs, the Fund plans to invest only in publicly traded BDCs. Not all publicly traded partnerships are considered MLPs. Limited Partnerships that are not MLPs are publicly traded partnerships that do not meet the qualifications contained in Section 7704 of the Internal Revenue Code of 1986, as amended (the IRC).
(For additional information related to the tax treatment of MLPs, see Taxes Investment in MLPs in this Prospectus.) The Fund seeks to outperform the Zacks Multi-Asset Income Index (a Benchmark). The Fund also seeks to generate attractive long-term equity performance using the three methods detailed hereafter. First, the Fund expects to earn 50% to 75% of its long-term return from cash dividends and distributions on portfolio securities. Second, the Fund expects to achieve an attractive low-risk profile by utilizing Meritage Portfolio Management, Inc.s value-centric security ranking and selection process. Third, the Fund seeks to enhance its cash return prospects by regularly investing among several alternative yield-focused equity categories, as listed above. While the Fund invests primarily in the exchange-traded Equity Securities of domestic companies, up to 40% of the Funds total assets may be invested in the common stock (or its equivalent) of and American Depositary Receipts (ADRs) relating to foreign companies (including those located in emerging markets) that trade in the U.S.
ADRs are issued by U.S. banks (depositories) and represent ownership interests in securities of foreign companies that are deposited with those banks. The Fund may invest in sponsored ADR arrangements wherein the foreign issuer assumes the obligation to pay some or all of the depositorys transaction fees or unsponsored ADR arrangements wherein the foreign issuer assumes no obligations and the depositarys transaction fees are paid directly by the ADR holders. The Fund invests in Equity Securities of companies without regard to the size of those companies, subject to a minimum market capitalization requirement of greater than $200 million. The Advisers investment selection method is based on its quantitative process and qualitative research and is designed to identify companies that it believes (1) are selling for less than what the Adviser believes they are worth, (2) represent a better value than buying the corresponding benchmark as a whole, and (3) are the most attractive investment opportunities in the Advisers investment universe.
The Fund will invest in 40 75 companies to strike what the Adviser believes to be an appropriate balance between investments in the Advisers best ideas and risk exposure to any one company or sector. The Adviser regularly monitors the companies in the portfolio in the context of other opportunities that are available and may sell a security or reduce its position in a security for specific reasons. Some examples include: (1) the position has appreciated thus reducing its quantitative score and return potential, (2) the position has become oversized and the Adviser believes it should be reduced to decrease risk, and (3) the Adviser develops concerns about the underlying companys business prospects.
MPYIX Holdings
Top 10 holdings of Meritage Yield-Focus Equity Fund by percentage of net assets, from the fund's latest SEC N-PORT filing.
| Holding | % of net assets |
|---|---|
| Centerpoint Energy Inc | 2.74% |
| Brit Amer Tobacco | 2.69% |
| PPL Corporation | 2.67% |
| Verizon Communications Inc. | 2.64% |
| Unilever PLC | 2.56% |
| CVS Health Corp | 2.50% |
| National Health Investors, Inc. | 2.49% |
| Invesco Exchange Traded Fund Trust II | 2.48% |
| National Grid plc | 2.35% |
| American Electric Power Co, Inc. | 2.32% |
MPYIX Portfolio Allocation
Asset-class allocation of Meritage Yield-Focus Equity Fund by percentage of net assets, from the latest SEC N-PORT filing.
| Asset class | Allocation |
|---|---|
| Equity | 97.5% |
| Cash & Equivalents | 1.4% |
MPYIX Costs and Fees
MPYIX costs about $108 per $10,000 invested per year in fund expenses.
- Net expense ratio: 1.08%
- Gross expense ratio: 1.64%
- Portfolio turnover: 99%
- Brokerage commissions: 23.70 bps of average net assets (SEC N-CEN)
MPYIX Cashflows
Over the 12 months to 2020-05, Meritage Yield-Focus Equity Fund had net outflows of $4.27M, from monthly SEC N-PORT filings.
| Month | Net flow |
|---|---|
| 2020-05 | −$2.39M |
| 2020-04 | −$1.62M |
| 2020-03 | −$256.39K |
MPYIX Debt Constituents
No individual debt constituents are reported in Meritage Yield-Focus Equity Fund's latest SEC N-PORT filing.
MPYIX Prospectus and SEC Filings
Official Meritage Yield-Focus Equity Fund filings on SEC EDGAR — prospectus, portfolio holdings and annual reports.
Related Funds
Other Emerging Markets Real Estate 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.