HUNTINGTON, N.Y.--(BUSINESS WIRE)--Rational Funds, a family of funds rooted in the investment philosophy of applying a rational approach to investing, has added the Rational/Resolve Adaptive Asset Allocation Fund (RDMIX) to its family of funds. RDMIX is sub-advised by ReSolve Asset Management Inc.
The Fund’s investment objective is capital appreciation uncorrelated to global equity markets. The Fund pursues its investment objective by using proprietary quantitative innovations to systematically emphasize global assets with strong and persistent trend and momentum characteristics, while maximizing diversification and minimizing total portfolio volatility to a targeted level of 12%.
“We are partnering with ReSolve Asset Management because of a shared sense of purpose in delivering what we believe to be a distinct managed futures fund to the market,” commented Jerry Szilagyi, CEO of Rational Funds.
The Fund, which was previously the Rational Dynamic Momentum Fund, trades under the tickers RDMAX, RDMCX and RDMIX.
“We believe that financial advisors should consider replacing the traditional 60/40 stock/bond portfolio with a 50/30/20 portfolio. Dedicating at least 20% of the portfolio to alternatives offers the potential to generate new and uncorrelated sources of returns,” said Adam Butler, Chief Investment Officer of ReSolve. “Historically, allocating a portion of an investor’s portfolio to managed futures would have led to dramatically better risk-adjusted returns while reducing drawdowns and volatility.”
RDMIX is currently open for investments. For more information on the Fund and on Rational Funds, please visit: www.rationalmf.com or call (800) 253-0412.
About Rational Funds
Rational Funds is a family of funds rooted in the investment philosophy of applying a rational approach to investing. Rational Funds currently offers eight mutual fund products, which employ rigorous research backed by sound academic theory, and a disciplined and systematic investment approach. The funds strive to deliver superior risk-adjusted returns, at the apex of successful modern portfolio strategies for today’s investor. For more information on Rational Funds and its mutual fund products, please visit: www.rationalmf.com.
Past performance does not guarantee future results.
Investors should carefully consider the investment objectives, risks, charges and expenses of the Rational Funds. This and other important information about the Fund is contained in the prospectus, which can be obtained by calling (800) 253-0412 or at www.RationalMF.com. The prospectus should be read carefully before investing. The Rational Funds are distributed by Northern Lights Distributors, LLC member FINRA/SIPC. Rational Advisors, Inc. and ReSolve Asset Management Inc. are not affiliated with Northern Lights Distributors, LLC.
Investing in the Fund carries certain risks. The value of the Fund may decrease in response to the activities and financial prospects of an individual security in the Fund's portfolio. Because the Advisor is primarily responsible for managing both the Fund and certain Underlying Funds, the Advisor is subject to conflict of interest with respect to how it allocates the Fund's assets among the Underlying Funds. Investing in the commodities markets (directly or indirectly) may subject the Fund to greater volatility than investments in traditional securities. Commodity prices may be influenced by unfavorable weather, animal and plant disease, geologic and environmental factors as well as changes in government regulation such as tariffs, embargoes or burdensome production rules and restrictions. Derivatives are investments in which the value is "derived" from the value of an underlying asset, reference rate, or index. The value of derivatives may rise or fall more rapidly than other investments. For some derivatives, it is possible to lose more than the amount invested in the derivative. If the Fund uses derivatives to "hedge" the overall risk of its portfolio, it is possible that the hedge may not succeed. Options involve risks that are not suitable for all investors. No strategy, including option strategies, can eliminate risk. Options strategies in particular may result in the total loss of principal over a short period of time. An investment in an exchange-traded fund (ETF) generally presents the same primary risks as an investment in a conventional fund that has the same investment objectives, strategies, and policies. In addition, ETFs may be subject to the following risks that do not apply to conventional funds: the market price of an ETF's shares may trade above or below their net asset value; an active trading market for an ETF's shares may not develop or be maintained; trading of an ETF's shares may be halted if the listing exchange's officials deem such action appropriate, the shares are delisted from the exchange, or the activation of market-wide circuit breakers halts stock trading generally. Because the Fund may invest its assets in underlying mutual funds or ETFs that have their own fees and expenses in addition to those charge directly by the Fund, the Fund may bear higher expenses than a Fund that invests directly in individual securities. Emerging market securities tend to be more volatile and less liquid than securities traded in developed countries. The Fund is non-diversified and may invest a greater percentage of its assets in a particular issue and may own fewer securities than other mutual funds.