This document is informational in nature only. Nothing herein is intended to imply that an investment in this portfolio may be considered "safe" or "risk free." This investment portfolio may not be suitable for all types of investors. This information is not intended to constitute legal, tax, accounting or investment advice. Prospective clients should consult their own advisors about such matters. No regulatory authority has passed upon or endorsed this summary or the merits of an investment using our strategy.
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE PERFORMANCE.
PORTFOLIO PERFORMANCE Monthly performance results include all discretionary accounts within the Athena Global Tactical ETFs portfolio including accounts that are no longer active as of the time of the publication of this document. Accounts are included in the composite performance after the day the initial portfolio position trades settle to the present or to the closing of the account. Performance results are asset-weighted composite returns calculated using a daily wealth relative method. Composites are valued daily and cash flows are accounted for on a daily basis. Monthly returns are calculated based on the daily wealth relative series and monthly geometric linking of performance results is used to calculate longer time period returns. Return figures are calculated using posting date accounting. All realized and unrealized capital gains and losses as well as all dividends and interest from investments and cash balances are included. The performance figures presented are net of brokerage commissions and all other expenses, including Athena’s management fee. The investment results shown are not representative of an individually managed account’s rate of return, and differences can occur due to factors such as timing of initial investment, client restrictions, cash movement, etc. Securities and portfolio weights used to implement the portfolio can differ based on account size, custodian, and client guidelines.
PORTFOLIO ALLOCATION GUIDELINES Information concerning portfolio allocations is representative of the target portfolio guidelines as of the publication date and does not necessarily reflect an actual client account. Actual client account composition may differ as a result of client-imposed investment restrictions, the timing of client investments, current market and economic conditions, and security availability. The investment manager may chose to substantially change asset class and individual security allocations at any time and without notice.
PRINCIPAL INVESTMENT RISKS An investment utilizing our investment methodology involves risks, including the risk of loss of a substantial portion (or all) of the amount invested. There is no assurance that the investment process outlined in this document will consistently lead to successful results. PAST PERFORMANCE DOES NOT GUARANTEE OR INDICATE FUTURE RESULTS. Risks of investing in the Athena Global Tactical ETFs portfolio include, but are not limited to: ETF, MF AND CEF RISK The cost of investing in the portfolio will be higher than the cost of investing directly in Electronically Traded Funds (ETFs), Mutual Funds (MFs) and Closed-End Funds (CEFs) and may be higher than other portfolios that invest directly in stocks and bonds. Each ETF, CEF and MF is subject to specific risks, depending on the nature of the fund. LEVERAGED OR GEARED ETFS RISK Leveraged ETFs seek to deliver multiples of the performance of the index or benchmark they track. For example, a 2x leveraged S&P 500 ETF seeks to deliver twice the investment return of the S&P 500 Index for one day. This also means that this ETF will lose 2% for every 1% loss in the index. Most leveraged ETFs “reset” daily, meaning that they are designed to achieve their investment objective on a daily basis. The returns, losses, and volatility of the underlying index are all amplified when using leveraged ETFs. For more information about how leveraged ETFs implement their investment strategies and their specific risks, please refer to each ETF’s prospectus. ADDITIONAL RISKS OF HOLDING LEVERAGED OR GEARED ETFS FOR PERIODS LONGER THAN ONE DAY The Athena Global Tactical ETFs investment strategy makes frequent and substantial use of leveraged ETFs, investing all of its assets in a single 2x leveraged ETF roughly 50% of the time. The strategy invests in leveraged ETFs for periods longer than one day, up to months or years, which can result in performance that is significantly different than the indicated multiple of the underlying index or benchmark, including performance in the opposite direction of the underlying index’s return. The strategy’s practice of holding leveraged ETFs for longer than one day is contrary to the design and investment objective contained in the leveraged ETFs’ prospectuses and exacerbates the impact of compounding on the strategy’s performance, especially during periods of high market volatility. DATA TIMING RISK In managing the Athena Global Tactical ETFs strategy, AthenaInvest makes investment decisions once per month, at most. The investment strategy’s design results in holding periods of six to nine months on average, which, when the strategy is holding a 2x leveraged ETF, is contrary to the design and investment objective contained in the leveraged ETFs’ prospectuses.
BENCHMARK DISCLOSURE The benchmark for the Athena Global Tactical ETFs portfolio is comprised of 100% Morningstar Global Markets Index. This benchmark was selected to generally represent a similar opportunity set of investments compared with the portfolio. The portfolio does not seek to replicate the composition, performance, or volatility of the benchmark or its constituent indices and can be expected to have investments that differ substantially from the securities included in any index. Accordingly, no representation is made that the performance, volatility, or other characteristics of the portfolio will track the benchmark. It is not possible to invest directly in an index.
INDEX DEFINITIONS: MORNINGSTAR GLOBAL MARKETS INDEX The index measures the performance of the stocks located in the developed and emerging countries across the world. Stocks in the index are weighted by their float capital, which removes corporate cross ownership, government holdings and other locked-in shares.
Athena portfolios are not sponsored, endorsed, sold or promoted by Morningstar, Inc. or any of its affiliates (all such entities, collectively, “Morningstar Entities”). The Morningstar Entities make no representation or warranty, express or implied, to the owners of Athena portfolios or any member of the public regarding the advisability of investing in Athena portfolios or the ability of the portfolio to track general market performance.
THE MORNINGSTAR ENTITIES DO NOT GUARANTEE THE ACCURACY AND/OR THE COMPLETENESS OF THE ATHENA PORTFOLIOS OR ANY DATA INCLUDED THEREIN AND MORNINGSTAR ENTITIES SHALL HAVE NO LIABILITY FOR ANY ERRORS, OMISSIONS, OR INTERRUPTIONS THEREIN.
DATA DISCLOSURE All of the information included in this document is current as of the date indicated and is subject to change. Certain information has been obtained from various third-party sources believed to be reliable, but we cannot guarantee its accuracy or completeness. This information is not intended to be complete, and material aspects of the descriptions contained herein may change at any time. While the information prepared in this document is believed to be accurate, we make no express warranty as to the completeness nor can we accept responsibility for errors made in good faith.
INVESTMENT MANAGER Portfolio management is provided by AthenaInvest Advisors LLC, an SEC-registered investment advisor. Such registration does not imply that the Securities and Exchange Commission approves or endorses AthenaInvest, its investment strategies, or any of its marketing materials.
Morningstar Ratings™ are based on risk-adjusted performance as of 3/31/2023. The Morningstar Rating™ for a strategy is derived from a weighted average of the performance figures associated with its three-, five- and ten-year (if applicable) Morningstar Rating™ metrics. For each strategy with at least a three-year history, Morningstar calculates a Morningstar Rating™ based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a strategy’s monthly performance (including the effects of applicable fees), placing more emphasis on downward variations and rewarding consistent performance. The top 10% of strategies in each 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.
© 2023 Morningstar. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results.
The portfolio utilizes patented behavioral market indicators to gauge expected returns and select broad market-exposure ETFs among various equity markets or cash each month. The portfolio invests in US small cap, US large cap or international developed equities. When market indicators are strong, the portfolio may increase exposure up to twice the market with geared ETFs to enhance returns. During weak conditions, the fund can hold up to 100% in cash.
Investor Guide*
Fact Sheet*
GIPS® Presentation
Forecasting Market Returns