RPIBC — Reinhart Intermediate Bond NextShares

RPIBC Fund Overview

RPIBC — Reinhart Intermediate Bond NextShares is a US mutual fund managed by Managed Portfolio Series, categorised as Intermediate Bond. ABC INVEST provides holdings, performance, costs, cashflows, risk data, prospectus documents and SEC filings, sourced from SEC filings.

• Type: US mutual fund
• Manager: Managed Portfolio Series
• Category: Intermediate Bond
• Ticker: RPIBC
• SEC CIK: 0001511699
• SEC series ID: S000060902
• Share class ID: C000197735

RPIBC Investment Objective and Strategy

Reinhart Intermediate Bond NextShares describes its objective and strategy as follows, from its latest prospectus filed with the SEC by Managed Portfolio Series.

Investment objective

The Reinhart Intermediate Bond NextShares (the Fund) seeks to outperform its benchmark, the Bloomberg Barclays U.S. Intermediate Government/Credit Index, measured over an entire market cycle, while maintaining key risks (interest rate risk, credit risk, structure risk, and liquidity risk) similar to the benchmark.

Principal investment strategy

Under normal market conditions, the Fund invests at least 80% of its net assets (plus any borrowings for investment purposes) in fixed income securities. The Fund invests primarily in investment grade fixed income securities. The Fund considers a fixed income security to be investment grade if it is rated within the BBB-category or better by Standard & Poors Ratings Services (Standard & Poors) or the Baa3 category or better by Moodys Investors Services, Inc. (Moodys) or BBB- category or better by Fitch Ratings Service (Fitch), or an equivalent rating by another nationally recognized statistical rating organization (NRSO); or, if unrated, determined by the Adviser to be of comparable quality. The Fund normally invests in fixed income securities with effective maturities between 0 and 10 years.

The average-dollar weighted maturity of the securities in which the Fund expects to invest will generally range from 3 to 8 years. The Funds investments in fixed income securities may include government or agency securities or obligations, corporate bonds, mortgage-backed securities, asset-backed securities, municipal bonds, revenue bonds, variable and floating rate securities, zero coupon bonds and collateralized mortgage obligations (CMOs). To construct the Funds portfolio, the Adviser undergoes an intensive undertaking utilizing both top-down economic analysis as well as bottom-up security research. Analysis of the current state and projected path of the economy provides direction for sector positioning. As the Advisers preferred sector weights for the Fund are slow to change, this positioning takes the form of adjusting maturities within sectors.

Once sector maturities have been adjusted, these sector durations are decided, bottom-up analysis of the credits available in our universe of all U.S. dollar denominated investment grade fixed income securities determines individual security selection. The Adviser generates a list of approved and core credit issuers. The Adviser maintains a research database on over 300 issuers from which the Advisers current core holding list is derived. This approved/core holdings approach gives the Adviser significant flexibility in structuring the Funds portfolio. The Advisers security selection process seeks to purchase securities that share four key characteristics: 1. Quality. The Adviser utilizes a disciplined credit research process. Central to this process is a proprietary credit scoring system developed to help identify issuers that exhibit strong credit fundamentals with an adequate margin of safety.

This system is also used to identify early those issuers that are experiencing deteriorating credit fundamentals. 2. Visibility. The Adviser seeks out corporate issuers with highly visible, consistent earnings streams; strong free cash flows; solid debt coverage capacity; and strong analyst coverage. These characteristics minimize the probability of negative surprises. 3. Liquidity. The Adviser concentrates on issues that exhibit excellent trading characteristics. When purchasing securities for the Fund the Adviser will generally avoid illiquid issues, debt securities issued in accordance with Rule 144A under the Securities Act of 1933, amended (the 1933 Act) (Rule 144A Securities) and debt of smaller issuers. 4. Availability. This goes hand-in-hand with liquidity. The Adviser looks for issuers that have multiple large issues across the entire yield curve.

This allows the Adviser to more easily manage contribution to duration without having to change the issuer exposure of the Fund. Security selection by the Adviser begins with the investable universe, which is comprised of all U.S. dollar denominated investment grade fixed income securities. The Adviser then utilizes a three-step process to determine suitability for inclusion in the Fund. First, the Adviser examines the credit ratings of the issuer. The Adviser views this as an outsiders perspective of the credit quality of the issuer. Second, the Adviser has developed a real-time database that tracks the price movements of each issuers securities in numerous markets relative to market peers and the overall market over a three-month, six-month and one year time horizon. This provides the Adviser with the markets perspective of each issuer.

Third, and most important, is the Advisers internal research. The Adviser has developed a Causes of Financial Distress Methodology to determine an issuers credit quality. Within this methodology, the Adviser seeks to identify any factors that have the ability to create financial distress for a given issuer. The Adviser evaluates causes of financial distress on a sector-by-sector basis. The causes of financial distress will vary considerably by sector. The Adviser then assesses the exposure of each issuer to the potential causes of distress. If the exposure is sufficiently low, the issuer is classified as acceptable for inclusion in the Fund. About NextShares NextShares are a new type of actively managed exchange-traded product operating pursuant to an order issued by the SEC granting an exemption from certain provisions of the Investment Company Act of 1940, as amended (the 1940 Act).

NextShares funds began trading in February 2016 and have a limited operating history. There can be no guarantee that an active trading market for NextShares will develop or be maintained, or that their listing will continue unchanged. Individual shares of a NextShares fund may be purchased and sold only on a national securities exchange or alternative trading system through a broker-dealer that offers NextShares (Broker), and may not be directly purchased or redeemed from the fund. As a new type of fund, NextShares initially may be offered by a limited number of Brokers. Trading prices of NextShares are directly linked to the funds next-computed NAV, which is normally determined as of the close of regular market trading each business day. Buyers and sellers of NextShares will not know the value of their purchases and sales until NAV is determined at the end of the trading day.

Trading prices of NextShares will vary from NAV by a market-determined trading cost (i.e., a premium or discount to NAV), which may be zero. The premium or discount to NAV at which NextShares trades are executed is locked in at the time of trade execution, and will depend on market factors, including the balance of supply and demand for shares among investors, transaction fees and other costs associated with creating and redeeming Creation Units (as defined below) of shares, competition among market makers, the share inventory positions and inventory strategies of market makers, and the volume of share trading. Reflecting these and other market factors, prices of shares in the secondary market may be above, at or below NAV. See Purchases and Sales of Fund Shares below for important information about how to buy and sell shares.

How NextShares Compare to Mutual Funds. Mutual fund shares may be purchased and redeemed directly from the issuing fund for cash at the funds next determined NAV. Shares of NextShares funds, by contrast, are purchased and sold primarily in the secondary market. Because trading prices of NextShares may vary from NAV and commissions may apply, NextShares may be more expensive to buy and sell than mutual funds. Like mutual funds, NextShares may be bought or sold in specified share or dollar quantities, although not all Brokers may accept dollar-based orders. Relative to investing in mutual funds, the NextShares structure offers certain potential advantages that may translate into improved performance and higher tax efficiency. These potential advantages include: (a) a single class of shares with no sales loads or distribution and service (12b-1) fees; (b) lower fund transfer agency expenses; (c) reduced fund trading costs and cash drag in connection with shareholder inflows and outflows; and (d) lower fund capital gains distributions.

Because NextShares do not pay sales loads or distribution and service (12b-1) fees, their appeal to financial intermediaries may be limited to distribution arrangements that do not rely upon such payments. How NextShares Compare to ETFs . Similar to ETFs, NextShares are issued and redeemed only in specified large aggregations (Creation Units) by or through Authorized Participants (i.e., broker-dealers or institutional investors that have entered into agreements with the funds distributor) and trade throughout the day on an exchange. Unlike ETFs, trading prices of NextShares are directly linked to the funds next end-of-day NAV rather than determined at the time of trade execution. Different from ETFs, NextShares do not offer opportunities to transact intraday at currently (versus end-of-day) determined prices.

Unlike actively managed ETFs, NextShares are not required to disclose their full holdings on a daily basis, thereby protecting fund shareholders against the potentially dilutive effects of other market participants front-running the funds trades. Because the mechanism that underlies efficient trading of NextShares does not involve portfolio instruments excluded from creations and redemptions, the need for full portfolio holdings disclosure to achieve tight markets in NextShares is eliminated. The NAV-based trading employed for NextShares provides investors with built-in trade execution cost transparency and the ability to control their trading costs using limit orders. This feature of NextShares distinguishes them from ETFs, for which the variance between market prices and underlying portfolio values is not always known by individual investors and cannot be controlled by them.

For more information, see Additional Information about NextShares.

RPIBC Costs and Fees

RPIBC costs about $30 per $10,000 invested per year in fund expenses.

• Net expense ratio: 0.30%
• Gross expense ratio: 5.18%
• Portfolio turnover: 0%
• Brokerage commissions: 0.00 bps of average net assets (SEC N-CEN)

RPIBC Debt Constituents

No individual debt constituents are reported in Reinhart Intermediate Bond NextShares's latest SEC N-PORT filing.

RPIBC Prospectus and SEC Filings

Official Reinhart Intermediate Bond NextShares filings on SEC EDGAR — prospectus, portfolio holdings and annual reports.

• Prospectus (485BPOS) — filed 2018-10-04
• Prospectus (485BPOS) — filed 2018-02-27
• Annual census (N-CEN) — filed 2019-08-14

Related Funds

Related funds tracked on ABC INVEST:

• Kensington Dynamic Allocation Fund (KAGCX)
• Kensington Managed Income Fund (KAMIX)
• Reinhart Genesis PMV Fund (RPMAX)
• Leuthold Core Investment Fund (LCORX)
• Olstein All Cap Value Fund (OFAFX)

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.