Tactical Municipal Fund

TMNAX | TMNCX | TMNIX

As of September 20th, 2021

NAV

$11.10

DAILY CHANGE

0 (0.00%)

YTD RETURN

3.81%

INCEPTION DATE

6/11/2018

AUM

$88.6M

The Counterpoint Tactical Municipal Fund seeks tax-free income and capital preservation.

Key Advantages

Preservation of Capital

The Fund’s strategy is designed to limit downside portfolio volatility. The Fund seeks to achieve superior risk-adjusted tax-free returns by dynamically changing credit quality exposure in municipal bonds in response to shifts in market behavior.

Risk Management

The Fund uses price-driven trend-following models to tactically allocate the portfolio in order to manage risk.

Quantitative Research-Driven

Counterpoint’s empirical research of market history has shown price levels can be an effective predictor of future volatility, and can be utilized to seek an improvement to risk-adjusted returns relative to passive benchmarks.

Innovative Management Team

Counterpoint’s investment team develops and publishes some of the latest research in the behavioral finance field, which is leveraged throughout Counterpoint’s quantitative approach.


Strategy

The Fund seeks tax-exempt income by investing in mutual funds and ETFs of high-yield or high-quality municipal bond instruments. The Fund leverages proprietary quantitative trend-following models to reduce exposure to declines in the high-yield municipal bond market.

The Fund is designed to limit downside portfolio volatility by tactically allocating according to market conditions. The portfolio is constructed based on empirical research of market history and price-driven trend-following models to manage risk.

The Fund primarily invests in mutual funds and ETFs of high-yielding municipal bonds when the model indicates a stable or upward-trending market. Investments shift to mutual funds of higher quality municipal money market and/or other short-term municipal securities when the model indicates a downward-trending market.

There is no guarantee that any investment strategy will achieve its objectives, generate profits or avoid losses.

High Yield Muni Trend Signals Over Time

Source: Bloomberg. The above stylized example depicts trading signals to a tactical strategy on the Municipal High Yield bond market. The strategy uses crosses above and below the included index’s 200-day moving average to create buy and sell signals. Several signals are omitted to improve readability. The Fund does not use the 200-day moving average in its strategy, but employs a similar trend following approach.

Annualized Return and Risk of High Yield Muni

Source: Bloomberg. The above results depict returns and risk of the untradeable Barclays Muni High Yield Total Return Index while Risk Off (when the index is below its 200-day moving average) and Risk On (when the index is above its 200-day moving average).

The Fund does not use the 200-day moving average in its strategy, but employs a similar trend-following approach.


Risk Off: The period of time where the Muni High Yield Index is below the 200-day moving average. A trend-following strategy would sell the asset class in a risk off state.


Risk On: The period of time where the Muni High Yield Index is above the 200-day moving average. A trend-following strategy would buy the asset class in a risk on state.

The indices shown are for informational purposes only and are not reflective of any investment. As it is not possible to invest in the indices, the data shown does not reflect or compare features of an actual investment, such as its objectives, costs and expenses, liquidity, safety, guarantees or insurance, fluctuation of principal or return, or tax features. Past performance is no guarantee of future results.

Recent Perspectives

Performance

As of September 20, 2021As of June 30, 2021
Return Since Fund Inception (Annualized)Year to Date1 Year ReturnStandard Deviation (Annualized)Return Since Fund Inception (Annualized)Year To Date1 Year Return
TMNIX5.84%3.81%7.11%1.86%6.20%3.56%8.95%
TMNAX
Without Sales Load
5.60%3.65%6.95%1.86%5.95%3.44%8.73%
TMNAX
With Sales Load (4.5%)
4.13%-1.00%2.17%1.86%4.37%-1.20%3.80%
TMNCX4.80%3.19%6.16%1.86%5.14%3.11%7.93%
Bloomberg Barclays Municipal Bond Index4.87%1.56%3.38%4.16%5.07%1.06%4.17%



Fund inception date is June 11, 2018.

The performance data displayed here represents past performance, which is no guarantee of future results. The investment return and principal value of an investment will fluctuate so that investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. The Fund’s investment adviser has contractually agreed to reduce its fees and/or absorb expenses of the Fund, at least until January 31, 2022 to ensure that the net annual fund operating expenses exclusive of Acquired Fund Fees and Interest/Dividends on Short Sales will not exceed 1.25%, 2.00%, and 1.00% attributable to Class A, Class C, and Class I shares, subject to possible recoupment from the Fund in future years.

Bloomberg Barclays Capital High Yield Municipal Bond Index is an unmanaged index made up of bonds that are non-investment grade, or unrated by Moody’s Investors Service with a remaining maturity of at least 1 year. Bloomberg Barclays US Corporate High Yield Bond Index measures the USD-denominated, high-yield, fixed-rate corporate bond market. The indices shown are for informational purposes only and are not reflective of any investment. As it is not possible to invest in the indices, the data shown does not reflect or compare features of an actual investment, such as its objectives, costs and expenses, liquidity, safety, guarantees or insurance, fluctuation of principal or return, or tax features.

 

 

 



Facts

TickerTMNAXTMNCXTMNIX
CUSIP66538R10266538R20166538R300
Share ClassClass AClass CInstitutional
Minimum Investment$5,000$5,000$100,000
Minimum IRA Investment$1,000$1,000$100,000
Management Fee0.70%0.70%0.70%
Estimated Acquired Fund Expenses0.47%0.47%0.47%
Estimated Other Fund Expenses (Maximum Net of Waiver)1.08% (0.30%)1.08% (0.30%)1.08% (0.30%)
12b-1 Distribution & Marketing0.25%1.00%None
Estimated Total Annual Operating Fees2.50%3.25%2.25%
Estimated Total Annual Operating Fees (After Waiver)1.72%2.47%1.47%
Fund Inception DateJune 11, 2018

The Fund’s investment adviser has contractually agreed to reduce its fees and/or absorb expenses of the Fund, at least until January 31, 2022 to ensure that the net annual fund operating expenses exclusive of Acquired Fund Fees and Interest/Dividends on Short Sales will not exceed 1.25%, 2.00%, and 1.00% attributable to Class A, Class C, and Class I shares, subject to possible recoupment from the Fund in future years.



Fund Literature



Holdings

Top Holdings – as of August 31, 2021 
PGIM Muni High Income Fund36.16%
Invesco AMT-Free Municipal Fund30.37%
American Century High-Yield Municipal Fund28.81%
VanEck High Yield Muni ETF2.32%
BlackRock Liquidity Funds Treasury Trust Fund1.82%

Portfolio holdings are subject to change, vary over time and should not be considered a recommendation to buy any individual security.



Distributions

Dividend RateEx DateFund Share ClassLong Term GainNAVPay DateRecord DateShort Term Gain
0.01862021-08-30Counterpoint Tactical Municipal I N/A11.122021-08-302021-08-27N/A
0.00952021-08-30Counterpoint Tactical Municipal C N/A11.052021-08-302021-08-27N/A
0.01622021-08-30Counterpoint Tactical Municipal A N/A11.122021-08-302021-08-27N/A
0.01822021-07-29Counterpoint Tactical Municipal I N/A11.182021-07-292021-07-28N/A
0.00902021-07-29Counterpoint Tactical Municipal C N/A11.112021-07-292021-07-28N/A
0.01632021-07-29Counterpoint Tactical Municipal A N/A11.182021-07-292021-07-28N/A
0.02272021-06-29Counterpoint Tactical Municipal I N/A11.12021-06-292021-06-28N/A
0.01302021-06-29Counterpoint Tactical Municipal C N/A11.032021-06-292021-06-28N/A
0.02012021-06-29Counterpoint Tactical Municipal A N/A11.092021-06-292021-06-28N/A
0.01802021-05-27Counterpoint Tactical Municipal I N/A11.052021-05-272021-05-26N/A
0.01082021-05-27Counterpoint Tactical Municipal C N/A10.982021-05-272021-05-26N/A
0.01562021-05-27Counterpoint Tactical Municipal A N/A11.042021-05-272021-05-26N/A
0.02012021-04-29Counterpoint Tactical Municipal I N/A10.982021-04-292021-04-28N/A
0.01152021-04-29Counterpoint Tactical Municipal C N/A10.912021-04-292021-04-28N/A
0.01842021-04-29Counterpoint Tactical Municipal A N/A10.982021-04-292021-04-28N/A
0.02362021-03-30Counterpoint Tactical Municipal I N/A10.872021-03-302021-03-29N/A
0.01532021-03-30Counterpoint Tactical Municipal C N/A10.82021-03-302021-03-29N/A
0.02122021-03-30Counterpoint Tactical Municipal A N/A10.872021-03-302021-03-29N/A
0.02282021-02-25Counterpoint Tactical Municipal I N/A10.812021-02-252021-02-24N/A
0.01442021-02-25Counterpoint Tactical Municipal C N/A10.742021-02-252021-02-24N/A
0.02072021-02-25Counterpoint Tactical Municipal A N/A10.812021-02-252021-02-24N/A
0.01732021-01-28Counterpoint Tactical Municipal I N/A10.992021-01-282021-01-27N/A
0.00942021-01-28Counterpoint Tactical Municipal C N/A10.922021-01-282021-01-27N/A
0.01532021-01-28Counterpoint Tactical Municipal A N/A10.982021-01-282021-01-27N/A
0.02912020-12-21Counterpoint Tactical Municipal I 0.090910.832020-12-212020-12-18N/A
0.01892020-12-21Counterpoint Tactical Municipal C 0.090910.772020-12-212020-12-18N/A
0.02652020-12-21Counterpoint Tactical Municipal A 0.090910.832020-12-212020-12-18N/A
0.02282020-11-27Counterpoint Tactical Municipal I N/A10.812020-11-272020-11-25N/A
0.01492020-11-27Counterpoint Tactical Municipal C N/A10.742020-11-272020-11-25N/A
0.02082020-11-27Counterpoint Tactical Municipal A N/A10.82020-11-272020-11-25N/A
0.01972020-10-29Counterpoint Tactical Municipal I N/A10.622020-10-292020-10-28N/A
0.01162020-10-29Counterpoint Tactical Municipal C N/A10.552020-10-292020-10-28N/A
0.01762020-10-29Counterpoint Tactical Municipal A N/A10.612020-10-292020-10-28N/A
0.02522020-09-29Counterpoint Tactical Municipal I N/A10.672020-09-292020-09-28N/A
0.01822020-09-29Counterpoint Tactical Municipal C N/A10.612020-09-292020-09-28N/A
0.02292020-09-29Counterpoint Tactical Municipal A N/A10.672020-09-292020-09-28N/A
0.01922020-08-28Counterpoint Tactical Municipal I N/A10.72020-08-282020-08-27N/A
0.01232020-08-28Counterpoint Tactical Municipal C N/A10.642020-08-282020-08-27N/A
0.01712020-08-28Counterpoint Tactical Municipal A N/A10.72020-08-282020-08-27N/A
0.01732020-07-30Counterpoint Tactical Municipal I N/A10.732020-07-302020-07-29N/A
0.00972020-07-30Counterpoint Tactical Municipal A N/A10.732020-07-302020-07-29N/A
0.02672020-03-30Counterpoint Tactical Municipal I N/A10.432020-03-302020-03-27N/A
0.02932020-03-30Counterpoint Tactical Municipal C N/A10.392020-03-302020-03-27N/A
0.02632020-03-30Counterpoint Tactical Municipal A N/A10.432020-03-302020-03-27N/A
0.00482020-02-27Counterpoint Tactical Municipal I N/A10.772020-02-272020-02-26N/A
0.05692019-12-27Counterpoint Tactical Municipal I N/A10.412019-12-272019-12-26N/A
0.04742019-12-27Counterpoint Tactical Municipal C N/A10.42019-12-272019-12-26N/A
0.05442019-12-27Counterpoint Tactical Municipal A N/A10.412019-12-272019-12-26N/A
0.02322019-11-27Counterpoint Tactical Municipal I N/A10.442019-11-272019-11-26N/A
0.01532019-11-27Counterpoint Tactical Municipal C N/A10.432019-11-272019-11-26N/A
0.02122019-11-27Counterpoint Tactical Municipal A N/A10.442019-11-272019-11-26N/A
0.01932019-10-30Counterpoint Tactical Municipal I N/A10.422019-10-302019-10-29N/A
0.01102019-10-30Counterpoint Tactical Municipal C N/A10.42019-10-302019-10-29N/A
0.01732019-10-30Counterpoint Tactical Municipal A N/A10.412019-10-302019-10-29N/A
0.02352019-09-27Counterpoint Tactical Municipal I N/A10.472019-09-272019-09-26N/A
0.01522019-09-27Counterpoint Tactical Municipal C N/A10.452019-09-272019-09-26N/A
0.02132019-09-27Counterpoint Tactical Municipal A N/A10.472019-09-272019-09-26N/A
0.01722019-08-29Counterpoint Tactical Municipal I N/A10.542019-08-292019-08-28N/A
0.00862019-08-29Counterpoint Tactical Municipal C N/A10.532019-08-292019-08-28N/A
0.01512019-08-29Counterpoint Tactical Municipal A N/A10.542019-08-292019-08-28N/A
0.02752019-07-30Counterpoint Tactical Municipal I N/A10.372019-07-302019-07-29N/A
0.02012019-07-30Counterpoint Tactical Municipal C N/A10.352019-07-302019-07-29N/A
0.02522019-07-30Counterpoint Tactical Municipal A N/A10.372019-07-302019-07-29N/A
0.02102019-06-27Counterpoint Tactical Municipal I N/A10.332019-06-272019-06-26N/A
0.01312019-06-27Counterpoint Tactical Municipal C N/A10.322019-06-272019-06-26N/A
0.01912019-06-27Counterpoint Tactical Municipal A N/A10.332019-06-272019-06-26N/A
0.03532019-05-30Counterpoint Tactical Municipal I N/A10.312019-05-302019-05-29N/A
0.02602019-05-30Counterpoint Tactical Municipal C N/A10.32019-05-302019-05-29N/A
0.03302019-05-30Counterpoint Tactical Municipal A N/A10.312019-05-302019-05-29N/A
0.02702019-04-29Counterpoint Tactical Municipal I N/A10.22019-04-292019-04-26N/A
0.01862019-04-29Counterpoint Tactical Municipal C N/A10.192019-04-292019-04-26N/A
0.02482019-04-29Counterpoint Tactical Municipal A N/A10.22019-04-292019-04-26N/A
0.02692019-03-28Counterpoint Tactical Municipal I N/A10.172019-03-282019-03-27N/A
0.01902019-03-28Counterpoint Tactical Municipal C N/A10.162019-03-282019-03-27N/A
0.02512019-03-28Counterpoint Tactical Municipal A N/A10.172019-03-282019-03-27N/A
0.02932019-02-27Counterpoint Tactical Municipal I N/A10.012019-02-272019-02-26N/A
0.02162019-02-27Counterpoint Tactical Municipal C N/A102019-02-272019-02-26N/A
0.02732019-02-27Counterpoint Tactical Municipal A N/A10.012019-02-272019-02-26N/A
0.02542019-01-30Counterpoint Tactical Municipal I N/A9.932019-01-302019-01-29N/A
0.01782019-01-30Counterpoint Tactical Municipal C N/A9.922019-01-302019-01-29N/A
0.02362019-01-30Counterpoint Tactical Municipal A N/A9.932019-01-302019-01-29N/A
0.01042018-12-20Counterpoint Tactical Municipal I N/A9.932018-12-202018-12-19N/A
0.00132018-12-20Counterpoint Tactical Municipal C N/A9.922018-12-202018-12-19N/A
0.00802018-12-20Counterpoint Tactical Municipal A N/A9.932018-12-202018-12-19N/A
0.00452018-11-29Counterpoint Tactical Municipal I N/A9.922018-11-292018-11-28N/A
0.00252018-11-29Counterpoint Tactical Municipal A N/A9.922018-11-292018-11-28N/A
0.01092018-10-30Counterpoint Tactical Municipal I N/A9.922018-10-302018-10-29N/A
0.00292018-10-30Counterpoint Tactical Municipal C N/A9.922018-10-302018-10-29N/A
0.00902018-10-30Counterpoint Tactical Municipal A N/A9.922018-10-302018-10-29N/A
0.02522018-09-27Counterpoint Tactical Municipal I N/A9.992018-09-272018-09-26N/A
0.02132018-09-27Counterpoint Tactical Municipal C N/A9.992018-09-272018-09-26N/A
0.02552018-09-27Counterpoint Tactical Municipal A N/A9.992018-09-272018-09-26N/A
0.03612018-08-30Counterpoint Tactical Municipal I N/A10.082018-08-302018-08-29N/A
0.02032018-08-30Counterpoint Tactical Municipal C N/A10.082018-08-302018-08-29N/A
0.03002018-08-30Counterpoint Tactical Municipal A N/A10.082018-08-302018-08-29N/A
0.01492018-07-30Counterpoint Tactical Municipal I N/A10.052018-07-302018-07-27N/A
0.01492018-07-30Counterpoint Tactical Municipal C N/A10.052018-07-302018-07-27N/A
0.01492018-07-30Counterpoint Tactical Municipal A N/A10.052018-07-302018-07-27N/A
0.00692018-06-28Counterpoint Tactical Municipal I N/A10.032018-06-282018-06-27N/A
0.00692018-06-28Counterpoint Tactical Municipal A N/A10.032018-06-282018-06-27N/A




Portfolio Managers

Joseph Engelberg, Ph.D

Ph.D. in Finance, Northwestern University

Michael Krause, CFA

MBA, University of California San Diego






STAY CONNECTED

Mutual Funds involve risk including the possible loss of principal. Investors should carefully consider the investment objectives, risks, charges and expenses of the funds managed by Counterpoint Funds. This and other important information about the funds is available in their prospectuses, which can be obtained at counterpointfunds.com or by calling 844-273-8637. The prospectuses should be read carefully before investing. The Counterpoint Funds fund family is distributed by Northern Lights Distributors, LLC member FINRA/SIPC. To reach the Counterpoint sales team, please refer to our contact page.

 

Important Risk Information


Mutual Funds involve risk including the possible loss of principal. Past performance is no guarantee of future results. There is no assurance the Fund will meet its stated objectives. The Fund is a new fund and does not have a performance record and the above index performance is not intended to serve as a proxy for the Fund’s future performance.

Bloomberg Barclays Capital High Yield Municipal Bond Index is an unmanaged index made up of bonds that are non-investment grade, or unrated by Moody’s Investors Service with a remaining maturity of at least 1 year. Bloomberg Barclays US Corporate High Yield Bond Index measures the USD-denominated, high-yield, fixed-rate corporate bond market. The indices shown are for informational purposes only and are not reflective of any investment. As it is not possible to invest in the indices, the data shown does not reflect or compare features of an actual investment, such as its objectives, costs and expenses, liquidity, safety, guarantees or insurance, fluctuation of principal or return, or tax features.

5516-NLD-09/01/2021

 

 

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