LEAWOOD, Kan.--(BUSINESS WIRE)--Cognios Capital, LLC announces that the Cognios Market Neutral Large Cap Fund Institutional share class (COGIX) received 5-Stars for its Overall Morningstar Rating™, out of 118 share classes in the market neutral category, derived from a weighted average of the Fund’s three- and five-year risk-adjusted performance as of January 31, 2018.
The Fund crossed its 5-year mark on December 31, 2017.
The Fund’s performance ranked 8 out of 83 funds in the market neutral category for the five-year performance period ending January 31, 2018. Over that period, the Fund had an annualized return of 5.16 percent, outperforming the category average by 3.98 percent.
|Total Returns (12/31/2017)||1 Year||3 Year||5 Year1|
|HFRX Market Neutral Index||1.73%||0.61%||1.43%|
Cognios Market Neutral Large Cap Fund Inception Date: 12/31/2012
All performance greater than one year is annualized.
Past performance does not guarantee future results. The performance data quoted represents past performance. The investment return and principal value will fluctuate so that an 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. You can obtain performance data current to the most recent month end by calling 855.254.6467.
“To receive a five-star rating for our five-year anniversary is a testament to our philosophy of seeking long-term growth independent of the movements and volatility in the global stock and bond markets,” said Gary DiCenzo, CEO of Cognios Capital. “We are very pleased with our five-year performance record and believe the results of this fund’s performance continue to confirm and reinforce the strength of our fundamentals-based quantitative investment process.”
The Fund employs a beta-adjusted market neutral strategy, with the Fund’s total return expected to be largely independent of the positive or negative total returns of the broad stock and bond market. All holdings are constituents of the S&P 500. The Fund is for investors seeking:
- Returns independent of broad market risks and macro events
- Portfolio diversification through a non-correlated strategy
- Reduced downside risk without sacrificing upside potential
The Fund is available for purchase through Fidelity, Schwab, TD Ameritrade and Pershing.
“Institutional investors continue to look at alternative strategies to enhance their clients’ risk-adjusted portfolio returns,” said Jonathan Angrist, portfolio manager of the Fund and president and chief investment officer of Cognios Capital. “In our current market landscape, there is certainly a desire among investors to limit their clients’ exposure to the volatility often experienced in the overall market. Our market neutral fund aims to do just that and our five-year performance speaks to the strength of the strategy.”
Established in 2008, Cognios Capital (www.cognios.com) is an independent quantitative investment management firm headquartered in Leawood, Kan. Cognios serves as an investment adviser to mutual funds, a private fund, institutional clients and individuals. The firm offers traditional long only and alternative investment strategies and is committed to proprietary research centered on portfolio optimization and risk-adjusted performance. As the architect of its investment products, Cognios blends a sophisticated quantitative infrastructure with a common sense fundamental investment philosophy. Cognios pursues investment excellence by providing market risk mitigation and valuable research expertise. As of December 31, 2017, Cognios Capital had $501.67 million assets under management.
Diversification does not eliminate the risk of experiencing investment losses.
As with any mutual fund, there are risks to investing. The value of the Fund’s assets will fluctuate as the equity market fluctuates, although the Beta-adjusted market neutral focus of the Fund should reduce the effect of general market fluctuations on the valuation of the Fund as a whole. Utilization of leverage, such as borrowings and shorting positions, involves certain risks to the Fund’s shareholders, including potential for higher volatility of the net asset value (“NAV”) of the Fund’s shares and the relatively greater effect of portfolio holdings on the NAV of the shares. The Fund may not always be able to close out a short position on favorable terms. Short sales involve the risk that the Fund will incur a loss by subsequently buying a security at a higher price than the price at which it sold the security short.
The Cognios Market Neutral Large Cap Fund is distributed by ALPS Distributors, Inc.
An investor should consider the investment objectives, risks, charges and expenses of the Fund carefully before investing. To obtain a prospectus containing this and other information, please call 1-855-254-6467. Read the prospectus carefully before you invest.
The Cognios Funds are not suitable for all investors and are subject to investment risks, including possible loss of the principal amount invested.
The Cognios Market Neutral Large Cap Fund Institutional share class (COGIX) was rated 5 Stars out of 118 Overall. 4 Stars out of 118 for the 3-year period and 5 Stars out of 83 for the five-year period against the market neutral category. All information in this report is as of January 31, 2018.
The Total Annual Operating Expenses and Total Annual Operating Expenses After Fee Waiver Expense Reimbursement you may pay as an investor in the Fund Institutional Class shares (as reported in the Prospectus dated January 29, 2018) are 3.63% and 3.48% respectively. Total Annual Operating Expenses after fee waivers/expense reimbursement excluding dividend expenses, borrowing costs and brokerage expenses on securities sold short are 1.70%. The Fund’s adviser has contractually agreed to limit expenses through January 31, 2019.
The Morningstar Rating™ for funds, or "star rating," is calculated for managed products (including mutual funds, variable annuity and variable life subaccounts, exchange-traded funds, closed-end funds, and separate accounts) with at least a three-year history. Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a managed product's monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The top 10% of products in each product category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. The Overall Morningstar Rating for a managed product is derived from a weighted average of the performance figures associated with its three-, five-, and 10-year (if applicable) Morningstar Rating metrics. The weights are: 100% three-year rating for 36-59 months of total returns, 60% five-year rating/40% three-year rating for 60-119 months of total returns, and 50% 10-year rating/30% five-year rating/20% three-year rating for 120 or more months of total returns. While the 10-year overall star rating formula seems to give the most weight to the 10-year period, the most recent three-year period actually has the greatest impact because it is included in all three rating periods.
Morningstar Rating is for the institutional share class only; other classes may have different performance characteristics.