NFGAX — Newfound Risk Managed Global Sectors Fund

NFGAX Fund Overview

NFGAX — Newfound Risk Managed Global Sectors Fund is a US mutual fund managed by Northern Lights Fund Trust III, categorised as Emerging Markets 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: Northern Lights Fund Trust III
• Category: Emerging Markets Blend / Core Equity
• Assets under management: $4.45M
• Ticker: NFGAX
• SEC CIK: 0001537140
• SEC series ID: S000045221
• Share class ID: C000140783

NFGAX Investment Objective and Strategy

Newfound Risk Managed Global Sectors Fund describes its objective and strategy as follows, from its latest prospectus filed with the SEC by Northern Lights Fund Trust III.

Investment objective

Long-term capital appreciation

Principal investment strategy

The Fund is comprised of primarily (i) large capitalization equity securities and/or exchange traded funds (ETFs) that represent 10 of the primary sectors of the S&P Global 1200 Index (S&P Global), (ii) 5 and 10-Year U.S. Treasury Note futures contracts, (iii) investment grade short term fixed income securities and (iv) ETFs that invest in investment grade short-term fixed income securities. The primary sectors of the S&P Global, in which the Fund may invest, are: materials, energy, financials, industrials, information technology, consumer staples, utilities, health care, consumer discretionary and telecommunications. The Adviser defines large capitalization equity securities as securities of companies with market capitalizations of over $10 billion. The Adviser utilizes a rules-based investment process to determine which securities to buy and sell for the Fund.

The process relies on signals from its proprietary models, which analyze each of the 10 sectors. Sectors that are included in the Fund are generally equally weighted, subject to the Advisers rebalancing methodology, with a maximum allocation per sector of 25%, measured at the time of rebalancing for the sector in question. As such, when three or fewer sectors are represented in the Fund, the remainder of the Funds assets will be held in cash or invested directly or indirectly in investment grade short term fixed income ETFs or other securities, up to 100%. The Funds portfolio is rebalanced weekly using the Advisers rebalancing methodology. The Fund may invest in long 5 and 10-Year U.S. Treasury futures contracts when the Advisers proprietary models indicate that such a position may offer a positive expected return and/or meaningful diversification benefits for the portfolio.

The Fund has the flexibility to invest in any combination of the securities described above, which include domestic and foreign common stock, preferred stock, depositary receipts, equity swaps (including single-name, index, and basket swaps), options, equity index futures, and ETFs that invest in these types of securities. The Fund may invest in a basket of equity securities to represent a sector if it determines that investment in the ETF for that sector is not feasible or otherwise would not be in the best interests of the Fund and its shareholders. When the Fund invests in equity securities, it will primarily invest in securities of large capitalization companies; however, it may also invest in medium capitalization companies, which the Adviser defines as companies with market capitalizations of between $2 billion and $10 billion.

Under normal circumstances, the Fund will invest at least 40% of its total assets in securities of non-U.S. issuers organized or having their principal place of business outside the U.S., including emerging market countries, or doing a substantial amount (more than 50%) of business outside the U.S., including emerging market countries. Emerging markets are generally those with a less-developed economy and per-capital income significantly lower than the U.S. The Fund will invest in emerging markets that are reflected in the MSCI Emerging Market Index or the S&P Emerging Markets Broad Market Index. Investments in ETFs based on non-U.S. market indices are considered investments outside the U.S. for purposes of the 40% requirement noted above. The Fund uses investment leverage as part of its principal investment strategy.

The Fund typically expects to invest an amount approximately equal to its net assets directly in a portfolio of large capitalization equity securities and/or ETFs while also maintaining notional exposure to 5 and 10-Year U.S. Treasuries through futures contracts. The Funds total investment exposure will typically be less than 200% of the Funds net asset value (NAV). It is possible that the Fund could lose money on both its investments in equity securities and/or ETFs as well as 5 and 10-year U.S. Treasury futures contracts at the same time.

NFGAX Costs and Fees

NFGAX costs about $220 per $10,000 invested per year in fund expenses.

• Net expense ratio: 2.20%
• Gross expense ratio: 2.20%
• Portfolio turnover: 161%
• Brokerage commissions: 6.32 bps of average net assets (SEC N-CEN)

NFGAX Cashflows

Over the 12 months to 2020-09, Newfound Risk Managed Global Sectors Fund had net inflows of $38.17M, from monthly SEC N-PORT filings.

NFGAX Debt Constituents

No individual debt constituents are reported in Newfound Risk Managed Global Sectors Fund's latest SEC N-PORT filing.

NFGAX Prospectus and SEC Filings

Official Newfound Risk Managed Global Sectors Fund filings on SEC EDGAR — prospectus, portfolio holdings and annual reports.

• Prospectus (485BPOS) — filed 2019-08-07
• Prospectus supplement (497) — filed 2020-08-17
• Prospectus supplement (497) — filed 2019-09-10
• Portfolio holdings (N-PORT) — filed 2020-11-25
• Portfolio holdings (N-PORT) — filed 2020-08-28
• Portfolio holdings (N-PORT) — filed 2020-05-29
• Annual census (N-CEN) — filed 2020-06-15
• Annual census (N-CEN) — filed 2019-06-14

Related Funds

Other Emerging Markets Blend / Core Equity funds tracked on ABC INVEST:

• Strategic Advisers Fidelity Emerging Markets Fund (FGOMX)
• iShares MSCI South Korea ETF (EWY)
• Strategic Advisers Emerging Markets Fund (FSAMX)
• iShares MSCI Taiwan ETF (EWT)
• iShares MSCI Brazil ETF (EWZ)

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.