NFMIX — Newfound Multi-Asset Income Fund

NFMIX Fund Overview

NFMIX — Newfound Multi-Asset Income Fund is a US mutual fund managed by Northern Lights Fund Trust III, 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: Northern Lights Fund Trust III
• Category: Emerging Markets Real Estate
• Assets under management: $8.11M
• Ticker: NFMIX
• SEC CIK: 0001537140
• SEC series ID: S000046376
• Share class ID: C000144915

NFMIX Investment Objective and Strategy

Newfound Multi-Asset Income Fund describes its objective and strategy as follows, from its latest prospectus filed with the SEC by Northern Lights Fund Trust III.

Investment objective

Income

Principal investment strategy

The Fund seeks to achieve its investment objective by investing in ETFs that invest in foreign (including emerging market) and domestic (i) equity securities of any market capitalization (including common stock, preferred stock, real estate investment trusts (REITs) and master limited partnerships (MLPs), (ii) fixed income securities of any credit quality, duration or maturity (including corporate bonds, high-yield bonds (also known as junk bonds), convertible bonds, treasuries and emerging market bonds) and (iii) other income producing securities (including bank loans). The Fund may also invest in these types of securities through other exchange traded products (such as exchange traded notes (ETNs)). The Adviser utilizes a rules based investment process to determine which securities to buy and sell for the Fund.

The process begins with a determination of the eligible ETF investment universe for the strategy. The Adviser seeks to include ETFs in the investment universe that offer high income relative to ETFs as a whole. Secondary considerations when selecting the ETF investment universe include liquidity and ETF costs. The Adviser then relies on signals from its proprietary algorithmic models to determine which ETFs from the investment universe to include in the portfolio by determining whether each ETF in the investment universe is exhibiting positive or negative momentum. ETFs that are deemed to be exhibiting negative momentum are excluded from the portfolio. The Adviser then analyzes the yield to risk ratio of the remaining ETFs in the investment universe in order to determine the portfolio allocation of the Fund.

The ETFs are weighted based on their yield to risk ratio, which is their income potential per unit of risk. Those ETFs with a higher income potential per unit of risk are given a greater weighting in the portfolio. The allocation to any one ETF (other than to short-term, investment grade fixed income ETFs) is limited to 25% of the Funds assets calculated at the time of rebalancing for the sector in question of the Funds portfolio. As such, when three or fewer ETFs 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 securities, up to 100%. The model is evaluated weekly using the Advisers rules-based allocation methodology, which is based on the Advisers proprietary quantitative model that seeks to evaluate the underlying trends of the ETFs as well as their yield to risk ratios.

The Fund has the flexibility to invest in any combination of the securities described above. The Fund may invest in a basket of securities to represent a category of securities if it determines that investment in the ETF for that category of security is not feasible or otherwise would not be in the best interests of the Fund and its shareholders.

NFMIX Costs and Fees

NFMIX costs about $180 per $10,000 invested per year in fund expenses.

• Net expense ratio: 1.80%
• Gross expense ratio: 1.84%
• Portfolio turnover: 347%
• Brokerage commissions: 13.83 bps of average net assets (SEC N-CEN)

NFMIX Cashflows

Over the 12 months to 2020-06, Newfound Multi-Asset Income Fund had net inflows of $7.07M, from monthly SEC N-PORT filings.

NFMIX Debt Constituents

No individual debt constituents are reported in Newfound Multi-Asset Income Fund's latest SEC N-PORT filing.

NFMIX Prospectus and SEC Filings

Official Newfound Multi-Asset Income Fund filings on SEC EDGAR — prospectus, portfolio holdings and annual reports.

• Prospectus (485BPOS) — filed 2019-08-07
• Prospectus supplement (497) — filed 2019-09-10
• Prospectus supplement (497) — filed 2019-03-15
• 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 Real Estate funds tracked on ABC INVEST:

• Westwood Low Volatility Equity Fund (WLVIX)
• Pzena U.S. Large Cap Value ETF (PZLV)
• Noble Absolute Return ETF (NOPE)
• Jackson Square Global Growth Fund (JSPVX)
• Jackson Square Select 20 Growth Fund (DPCEX)

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.