PFAOX — RiskPro Alternative 0-15 Fund

PFAOX Fund Overview

PFAOX — RiskPro Alternative 0-15 Fund is a US mutual fund managed by Northern Lights Fund Trust, categorised as Total Return Allocation. 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
• Category: Total Return Allocation
• Assets under management: $80.02M
• Ticker: PFAOX
• SEC CIK: 0001314414
• SEC series ID: S000058595
• Share class ID: C000192502

PFAOX Investment Objective and Strategy

RiskPro Alternative 0-15 Fund describes its objective and strategy as follows, from its latest prospectus filed with the SEC by Northern Lights Fund Trust.

Investment objective

The Fund seeks to limit the maximum range of total returns to a gain or loss of less than 15%, over a forward-looking rolling twelve-month period.

Principal investment strategy

The Fund seeks to achieve its investment objective by investing more than 80% of the Funds assets in shares of mutual funds and exchange-traded funds managed by Pacific Investment Management Company LLC (PIMCO), under normal market circumstances (PIMCO Underlying Funds). In selecting PIMCO Underlying Funds to purchase or sell, on behalf of the Fund, the Adviser utilizes research services provided by PIMCO. The research services include information and analysis about the underlying PIMCO Funds, near-term and medium-term projections of market and economic trends and the relative attractiveness of absolute return fixed income, equity long/short, equity market neutral, and managed futures strategies as well as the general fixed income and equity market sectors. These inputs are driven by PIMCOs investment process in which top-down views informed by the firms cyclical and secular investment forums are complemented by bottom-up perspectives from sector specialists and analytic research.

In reviewing and implementing the information provided by PIMCO, the Adviser uses a proprietary investment analysis called Rational Analysis. The Advisers Rational Analysis investment approach relies on Fundamental Analysis, Technical Analysis, and Quantitative Studies in selecting positions. Technical Analysis: This method attempts to forecast future price movement by analyzing historical price patterns. Fundamental Analysis: This method is used to evaluate what a securitys intrinsic value should be by examining related economic, financial, and other qualitative and quantitative factors. The outcome of this analysis can then be compared to the securitys current value to determine if it is over or underpriced. Quantitative Analysis: This method analyzes historical price patterns and relationships between securities in an effort to create an optimal portfolio, which is the highest level of expected return for each level of risk.

Rather than using one of the above methods exclusively, the Adviser seeks to integrate the optimal elements of each method into a Rational decision-making model. In addition to investing in PIMCO Underlying Funds that use liquid alternative strategies, the Adviser may also invest in PIMCO Underlying Funds that invest in equity securities of varying market capitalization, style, sector, and country exposure; fixed-income securities issued by domestic and foreign corporations and government entities of any maturity or credit quality including high yield bonds (also known as junk bonds); and cash equivalents. The percentage of the Funds net assets allocated to equities, fixed-income securities, liquid alternative/speciality securities, and cash equivalents will vary. In selecting PIMCO Underlying Funds, the Adviser may also use a model portfolio of PIMCO Funds provided at no charge by PIMCO, although the Adviser is solely responsible for determining the extent to which it uses this portfolio and for selecting the PIMCO Underlying Funds and other securities in which the Fund invests.

In addition, in managing the Funds level of investment risk, the Adviser utilizes RiskPro, a software technology developed by ProTools, LLC, an affiliate of the Adviser. Based on proprietary algorithms, RiskPro provides an estimate of the maximum range of gain or loss of a portfolio of securities, over a forward-looking rolling twelve-month period. The higher the RiskPro estimate, the greater the level of volatility that the Fund may experience over a twelve-month period. As a result, investors may select investments that are designed to be aligned with their level of comfort with investment risk. RiskPros algorithms take into account, among other factors, the volatility of the portfolio over the prior twelve months; a comparison of the portfolios volatility over the prior twelve-month period to the volatility of the S&P 500 Index; and the long-term volatility of the S&P 500 Index.

The Adviser utilizes RiskPro to manage the Funds volatility, with the goal of limiting the Funds maximum range of total returns, over a twelve month period, to a gain or loss of less than 15%. The Fund is designed for investors that are not willing to endure an amount of investment risk comparable to, or greater than, the volatility of the S&P 500. The Adviser takes a dynamic approach to investing, moderately changing the Funds investments and/or asset allocation, based on market circumstances.

PFAOX Costs and Fees

PFAOX costs about $313 per $10,000 invested per year in fund expenses.

• Net expense ratio: 3.13%
• Gross expense ratio: 3.13%
• Portfolio turnover: 28%
• Brokerage commissions: 0.90 bps of average net assets (SEC N-CEN)

PFAOX Cashflows

Over the 12 months to 2020-04, RiskPro Alternative 0-15 Fund had net inflows of $74.98M, from monthly SEC N-PORT filings.

PFAOX Debt Constituents

No individual debt constituents are reported in RiskPro Alternative 0-15 Fund's latest SEC N-PORT filing.

PFAOX Prospectus and SEC Filings

Official RiskPro Alternative 0-15 Fund filings on SEC EDGAR — prospectus, portfolio holdings and annual reports.

• Prospectus (485BPOS) — filed 2019-09-05
• Prospectus (485BPOS) — filed 2018-08-30
• Prospectus (485BPOS) — filed 2017-09-20
• Portfolio holdings (N-PORT) — filed 2020-06-26
• Portfolio holdings (N-PORT) — filed 2020-03-26
• Portfolio holdings (N-PORT) — filed 2019-12-23
• Annual census (N-CEN) — filed 2020-07-14
• Annual census (N-CEN) — filed 2019-07-15

Related Funds

Other Total Return Allocation funds tracked on ABC INVEST:

• Federated Total Return Bond Fund (FTRFX)
• Columbia Balanced Fund (CBLAX)
• MFS Total Return Fund (MSFRX)
• AllianzGI Income & Growth Fund (AZNAX)
• AQR Risk Parity Fund (AQRNX)

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.