Tuesday, November 06, 2012
A Missouri Firm Gets Into The Fund Game
Reported by Ben Geier
There’s yet another new player in the mutual fund business.
SignalPoint Capital, a Springfield, Missouri-based ETF strategist, announced Monday the founding of its first open-ended mutual fund.
The SignalPoint Global Alpha Fund
will be based on the firm’s separately managed account strategies.
The fund will use First Trust’s ETFs to diversely allocate assets.
"This fund is designed to provide access to a dynamic ETF strategy that focuses on capturing gains and reducing downside risk in various market environments. We believe the result is a strategy that allows advisors to focus on meeting client needs with confidence that they are actively investing in a dynamic and changing market," stated SignalPoint CEO Michael Orzel.
Read the original company news release below.
Company Press Release
SignalPoint Capital Management Announces the Launch of its First Mutual Fund
The SignalPoint Global Alpha Fund provides access to a dynamic, diversified portfolio of exchange-traded funds
SPRINGFIELD, Mo., Nov. 5, 2012 -- /PRNewswire/ -- SignalPoint Capital Management, an exchange-traded funds (ETF) strategist, today announced the launch of the SignalPoint Global Alpha Fund, the firm's first open-ended mutual fund, which is based on its popular separately managed account strategies. The fund offers both investor and institutional share classes, trading under symbols SPGAX, SPGCX and SPCFX.
By employing a dynamic modeling process, the fund focuses on improving performance, preserving capital and reducing investor stress across various market cycles. SignalPoint's disciplined process assesses real-time market risk and filters out emotional factors, such as market fear, irrational exuberance and investor uncertainty. Based on its risk assessment, the investment team increases and decreases market exposure by systematically adjusting cash allocations with a focus on managing risk and improving returns.
"Typically, advisors take a 'set it and forget it' approach to ETF portfolio management," said Michael Orzel, chief executive officer of SignalPoint Capital Management. "At SignalPoint, we believe there's a better way. This fund is designed to provide access to a dynamic ETF strategy that focuses on capturing gains and reducing downside risk in various market environments. We believe the result is a strategy that allows advisors to focus on meeting client needs with confidence that they are actively investing in a dynamic and changing market."
The fund utilizes First Trust's AlphaDEX® diverse suite of Enhanced Index ETFs to allocate assets across styles, sectors and countries. Developed by First Trust Portfolios, L.P. (First Trust), the AlphaDEX® ETFs apply an enhanced indexing approach. By weighting components through a fundamental, rules-based methodology, the AlphaDEX® ETFs seek to generate positive alpha versus traditional market-cap weighted indexes.
"We are honored to have a suite of ETFs featured in SignalPoint's first mutual fund," said Andy Subramanian, senior vice president of First Trust Advisors. "This opportunity enhances the ability to bring quality ETF solutions to a wide range of investors. SignalPoint's dynamic approach is a nice complement to the AlphaDEX methodology."
SignalPoint has plans to distribute the fund alongside its existing separately managed account strategies through independent, regional and wirehouse advisors. According to Anthony Carrubba, SignalPoint's national sales director, "We will be partnering with Multi Funds LLC, utilizing its team of seasoned regional sales professionals to introduce advisors to SignalPoint, educate them on our process and provide ongoing support in the field."
About SignalPoint Capital Management Headquartered in Springfield, Missouri, SignalPoint Capital Management creates dynamic EFT portfolio solutions for advisors and their clients. Using a Market Risk Indicator tool, the SignalPoint team strategically allocates, consistently monitors and tactically adjusts portfolios with a constant focus on providing risk-adjusted returns – accessing opportunities in a dynamic and ever-changing market environment.
About First Trust First Trust Portfolios, L.P. (First Trust) was established in 1991 with a goal of offering investors a better way to invest. First Trust provides trusted investment products and advisory services that are designed to meet the needs of advisors and their clients. First Trust's AlphaDEX® suite of ETFs provides investors with a full suite of solutions that maintain a focus on generating positive alpha.
*Alpha is a measure of risk-adjusted performance. Alpha takes the volatility (price risk) of an investment and compares its risk-adjusted performance to a benchmark index. The excess return of the investment relative to the return of the benchmark index is alpha.
Investments in Mutual Funds involve risk including possible loss of principal. There is no assurance that the fund will achieve its goals or investment objectives. The fund can have risks associated with investing in other investment companies such as ETFs, the value of your investment will fluctuate in response to the performance of the acquired funds. Investing in acquired funds involves certain additional expenses and certain tax results that would not arise if you invested directly in the securities of the acquired funds. Investing in the commodities markets through commodity-linked ETFs, ETNs and mutual funds will subject the Fund to potentially greater volatility than traditional securities. Investments in underlying funds that own small and mid-capitalization companies may be more vulnerable than larger, more established organizations.
In addition to the risks generally associated with investing in securities of foreign companies, countries with emerging markets also may have relatively unstable governments, social and legal systems that do not protect shareholders, economies based on only a few industries, and securities markets that trade a small number of issues. Foreign common stocks and currency strategies will subject the Fund to currency trading risks that include market risk, credit risk and country risk.
Investors should carefully consider the investment objectives, risks, charges and expenses of the SignalPoint Global Alpha Fund. This and other important information about the Fund is contained in the prospectus, which can be obtained at www.signalpointfunds.com or by calling 866-691-2120. The prospectus should be read carefully before investing. The SignalPoint Global Alpha Fund is distributed by Northern Lights Distributors, LLC member FINRA.
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