The DFRA issuer, FCF Funds, implements its investment objective primarily by investing a minimum of 80% of its net assets in component securities of the Underlying Index, which is sponsored and managed by FCF Indexes LLC, an affiliate of FCF Advisors LLC, the Fund’s investment adviser. The Underlying Index aims to mirror the performance of a rules-based strategy focused on real assets equities, as defined by the Adviser's research. These equities include common stocks, REITs, MLPs, and ADRs within sectors such as real estate, infrastructure, commodities, and natural resources. Eligible securities must meet specific criteria, including being U.S.-listed, demonstrating positive free cash flow, and maintaining certain financial metrics. Securities are scored based on the FCF Quality Dividend Score, with only those in the top 25% considered for inclusion. The Fund may employ derivatives for exposure to Underlying Index securities, while its sub-adviser, Donoghue Forlines LLC, may actively trade to achieve the investment objective. Additionally, the Fund's concentration in particular industries aligns with that of the Underlying Index, which, as of September 30, 2023, is concentrated in the Real Assets Industry Group.
DFRA Dividend focuses on generating income for investors through a diversified portfolio strategy. The fund primarily invests in dividend-paying securities, aiming to provide a steady stream of income over time. DFRA Dividend selects securities from various sectors, including but not limited to consumer goods, utilities, financials, and telecommunications. The fund employs rigorous research and analysis to identify companies with strong fundamentals, stable cash flows, and a history of consistent dividend payments. By emphasizing dividend-paying stocks, DFRA Dividend seeks to offer investors the potential for both income and long-term capital appreciation. Additionally, the fund may use derivative instruments strategically to enhance returns or manage risk within the portfolio. Overall, DFRA Dividend offers investors a reliable income-generating strategy backed by a disciplined approach to selecting dividend-paying equities across different sectors.
DFRA Tracking is designed to closely replicate the performance of a specific market index or benchmark. The fund invests predominantly in a diversified range of securities that mirror the composition and weighting of its designated benchmark. DFRA Tracking employs a passive investment strategy, aiming to match the returns of the benchmark rather than outperforming it. This approach typically involves low portfolio turnover and minimal management fees, making it a cost-effective option for investors seeking broad market exposure. The fund's holdings are periodically adjusted to reflect changes in the benchmark, ensuring alignment with the index's performance over time. DFRA Tracking provides investors with a convenient way to gain exposure to a particular market segment or asset class while aiming to minimize tracking error and closely track the benchmark's returns.
DFRA Correlation is structured to capitalize on the correlation between various asset classes within the market. The fund strategically allocates its investments across different asset classes, such as stocks, bonds, commodities, and real estate, aiming to optimize diversification and manage risk. By carefully selecting assets that have historically exhibited low correlation to each other, DFRA Correlation seeks to minimize the overall volatility of the portfolio while potentially enhancing returns. The fund's investment approach relies on thorough research and analysis to identify assets that may behave differently under various market conditions, thereby providing potential downside protection and smoother overall performance. DFRA Correlation offers investors a systematic way to access a diversified portfolio designed to navigate changing market environments while aiming to achieve attractive risk-adjusted returns.
DFRA Sector specializes in capitalizing on opportunities within specific market sectors to potentially achieve superior returns. The fund employs an active management approach, allowing its experienced portfolio managers to dynamically adjust sector allocations based on market conditions and opportunities. DFRA Sector focuses on in-depth fundamental analysis and market research to identify sectors poised for growth or undervalued sectors with potential for a turnaround. By concentrating investments in select sectors such as technology, healthcare, energy, or consumer discretionary, DFRA Sector aims to outperform broader market indices. The fund's active management style enables it to capitalize on sector-specific trends and developments, potentially generating alpha for investors. DFRA Sector offers investors the opportunity to participate in targeted sector investments with the goal of enhancing portfolio returns over the long term.
DFRA Exposure is tailored to provide investors with targeted exposure to specific asset classes, regions, or investment themes. The fund offers a flexible investment strategy that allows investors to gain exposure to various market segments or themes that align with their investment objectives and risk tolerance. DFRA Exposure may focus on specific asset classes such as equities, fixed income, commodities, or alternative investments, allowing investors to customize their portfolio allocations accordingly. Additionally, the fund may offer exposure to specific regions or countries, providing opportunities to capitalize on regional economic growth or market trends. Whether seeking to invest in emerging markets, global technology companies, sustainable investing themes, or other specialized areas, DFRA Exposure offers investors the flexibility to tailor their portfolios to their specific investment preferences. With a diverse range of investment options and themes, DFRA Exposure aims to provide investors with the potential to achieve their desired investment outcomes while managing risk effectively.
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