RMBIX — RMB Mendon Financial Long/Short Fund

RMBIX Fund Overview

RMBIX — RMB Mendon Financial Long/Short Fund is a US mutual fund managed by Rmb Investors Trust, categorised as United States Blend / Core Financials Equity. ABC INVEST provides holdings, performance, costs, cashflows, risk data, prospectus documents and SEC filings, sourced from SEC filings.

• Type: US mutual fund
• Manager: Rmb Investors Trust
• Category: United States Blend / Core Financials Equity
• Assets under management: $23.46M
• Ticker: RMBIX
• SEC CIK: 0000030126
• SEC series ID: S000002999
• Share class ID: C000082358

RMBIX Investment Objective and Strategy

RMB Mendon Financial Long/Short Fund describes its objective and strategy as follows, from its latest prospectus filed with the SEC by Rmb Investors Trust.

Investment objective

The RMB Mendon Financial Long/Short Fund (the Fund) seeks capital appreciation. There can be no assurance that the Fund will be successful in achieving its investment objective.

Principal investment strategy

The Fund pursues its investment objective by investing, under normal circumstances, at least 80% of its net assets (plus any borrowings for investment purposes) in the common stocks of U.S. companies of any market capitalization that are in the financial services sector. The Fund includes the market value of derivatives that provide exposure to the financial services sector in determining compliance with the Funds 80% investment policy. The Fund will take long and short positions in companies in the financial services sector of any size. The portion invested in small, medium or large companies is expected to vary over time. The Fund is not designed to be market neutral. The Fund is non-diversified and may invest a larger portion of its assets in the securities of a single company than diversified mutual funds.

For purposes of selecting investments, the Fund defines the financial services sector broadly. It includes (but is not limited to) the following: Banks Insurance companies Consumer and commercial finance companies Securities brokerage firms and electronic trading networks Investment management and advisory firms Financial conglomerates Financial technology companies Real Estate Investment Trusts The portfolio manager constructs the Funds portfolio using both a top-down and bottom-up analysis. Examples of top-down analysis include the study of interest rates, credit trends and other macroeconomic factors that broadly affect the financial services sector. Examples of bottom-up analysis include industry screens, sell-side company research reports, company models and other fundamental research that are used to construct the Funds portfolio on a stock-by-stock basis.

The sub-adviser attempts to identify how various financial services sub-sectors and the individual companies therein will move in reaction to market events. Each potential investment is evaluated by weighing its potential for gain against its associated risks. Because of the way the sub-adviser constructs the Funds portfolio, there may be times when the Funds investments are focused in one or more financial services sub-sectors and/or a limited number of regions of the U.S. The Fund takes short positions ( i.e. , sell short) in securities of companies believed to be overvalued, with a maximum short exposure limit of 25% of net assets. When taking a short equity position, the Fund borrows the security from a third party and sells it at the then current market price. A short equity position will benefit from a decrease in price of the security and will lose value if the price of the security increases.

Selling short may serve to hedge the Funds long portfolio in periods of market decline and to use negative information about companies gained from the sub-advisers research to the Funds advantage. A strategy involving selling a particular security short is separate and distinct from a strategy of buying and then selling the underlying security itself. The Fund may sell securities or close a short position for a variety of reasons, such as to secure gains, limit losses or redeploy assets into other opportunities. The Fund also uses futures and/or options on securities, indices and other derivatives (a type of instrument whose value is determined by reference to the value or the change in value of one or more securities, indices or other financial instruments) to hedge against market changes or as a substitute for securities transactions.

It may also use derivatives in attempts to profit from anticipated market and security movements or as an alternative to selling a security short. The Fund expects that its primary investments in derivatives will be in written covered call options and long put options. As the writer of a covered call option, the Fund forgoes, during the options life, the opportunity to profit from increases in the market value of the security covering the call option above the sum of the premium and the strike price of the call, but has retained the risk of loss should the price of the underlying security decline. Long put option purchases allow the option holder to sell or put the underlying security at the contract strike price at a future date. If the price of the underlying security declines in value, the value of the long put option increases.

Options are wasting assets and expire, and as a result can expose the Fund to significant loss. The Funds use of derivatives will have the economic effect of financial leverage. Financial leverage magnifies exposure to the swings in prices of an asset underlying a derivative instrument and results in increased volatility, which means the Fund will have the potential for greater gains, as well as the potential for greater losses, than if the Fund does not use derivatives instruments that have a leveraging effect. Leveraging tends to magnify, sometimes significantly, the effect of any increase or decrease in the Funds exposure to an asset and may cause the Funds net asset value per share to be volatile.

RMBIX Costs and Fees

RMBIX costs about $166 per $10,000 invested per year in fund expenses.

• Net expense ratio: 1.66%
• Gross expense ratio: 1.66%
• Portfolio turnover: 98%
• Brokerage commissions: 170.56 bps of average net assets (SEC N-CEN)

RMBIX Cashflows

Over the 12 months to 2020-03, RMB Mendon Financial Long/Short Fund had net inflows of $24.48M, from monthly SEC N-PORT filings.

RMBIX Debt Constituents

No individual debt constituents are reported in RMB Mendon Financial Long/Short Fund's latest SEC N-PORT filing.

RMBIX Prospectus and SEC Filings

Official RMB Mendon Financial Long/Short Fund filings on SEC EDGAR — prospectus, portfolio holdings and annual reports.

• Prospectus (485BPOS) — filed 2020-05-20
• Prospectus (485BPOS) — filed 2019-05-17
• Prospectus supplement (497) — filed 2020-06-11
• Portfolio holdings (N-PORT) — filed 2020-05-28
• Annual census (N-CEN) — filed 2020-03-12
• Annual census (N-CEN) — filed 2019-03-13

Related Funds

Other United States Blend / Core Financials Equity funds tracked on ABC INVEST:

• Alternative Asset Allocation Fund (JAAAX)
• NYLI Hedge Multi-Strategy Tracker ETF (QAI)
• Invesco Financial Preferred ETF (PGF)
• The Brinsmere Fund - Growth ETF (TBFG)
• GuidePath Flexible Income Allocation Fund (GPIFX)

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.