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Altegris/AACA Opportunistic Real Estate Fund -
Quarterly Fact Sheet
Quarterly Commentary
Quarterly Presentation
Investment Approach
Diversified real estate exposure with a hedged approach. The Fund seeks to achieve total returns by accessing an experienced long-biased real estate manager who opportunistically invests in companies that own real assets, which may also provide a potential inflation hedge and durable income stream.
Performance
Inception date of the Predecessor Fund was 2/1/11. Returns for periods longer than one year are annualized. Class C inception date was 12/01/2020.
The maximum sales charge (load) for Class A is 5.75%. Class A share investors may be eligible for a reduction in sales charges. The total annual fund operating expense ratio is 1.80%, 2.55%, and 1.55% of average daily net assets attributable to Class A, C, and I respectively. The Adviser has contractually agreed to reduce its fees and/or absorb expenses of the Fund as described in the Fund Summary, until at least October 31, 2024. This agreement may only be terminated only by the Board of Trustees, on 60 days written notice to the Adviser. See Fund’s Prospectus for details.
The performance data quoted here represents past performance, which is no guarantee of future results. Current performance may be lower or higher than the performance data quoted above. Investment return and principal value will fluctuate, so that shares, when redeemed, may be worth more or less than their original costs. A Fund’s performance, especially for very short periods of time, should not be the sole factor in making your investment decisions. For performance information current to the most recent month end, please call (888) 524-9441.
The Performance shown before January 9, 2014 is that of the American Assets Real Estate Securities, L.P. (“Predecessor Fund”) which was managed by AACA, the Fund’s sub-adviser, from February 11, 2011 through January 9, 2014 in the same style and pursuant to substantially identical real estate long short strategies, investment goals and guidelines, as are presently being pursued on behalf of the Fund by AACA. Because the Predecessor Fund was not registered under the Investment Company Act of 1940, it was not subject to the same investment restrictions, diversification requirements, leverage limits and other regulatory restrictions of the Fund, which might have reduced its returns. The Predecessor Fund also was not subject to sales loads that would have adversely affected its performance. Performance shown of the Predecessor Fund is net of its applicable management fees, performance fees and other actual expenses and is not an indicator of future results.
The performance quoted represents past performance and does not guarantee future results. Investment return and principal value of an investment will fluctuate so that an investor’s shares, when sold or redeemed, may be worth more or less than the original cost. Current performance may be lower or higher than the performance quoted.
* Performance data for certain classes of shares of certain funds are based on pre-class inception information dating back to an older class of fund shares. This information may be considered when assessing a fund’s performance, but it does not represent actual performance of these classes of shares. The inception date noted under Key Fund Facts is the date the class of shares was incepted. See fund prospectus or fact sheet for details.
The performance quoted represents past performance and does not guarantee future results. Investment return and principal value of an investment will fluctuate so that an investor’s shares, when sold or redeemed, may be worth more or less than the original cost. Current performance may be lower or higher than the performance quoted.
The performance quoted represents past performance and does not guarantee future results. Investment return and principal value of an investment will fluctuate so that an investor’s shares, when sold or redeemed, may be worth more or less than the original cost. Current performance may be lower or higher than the performance quoted.
The Fund’s performance returns quoted for periods prior to 1/9/2014 is that of the Predecessor Fund (while it was a limited partnership), and is net of applicable management fees, performance fees and other actual expenses of the Predecessor Fund. Fund returns quoted from 1/9/2014 forward are based on Class A shares at NAV and do not include the effects of a sales charge or taxes. Current performance may be lower or higher than the performance shown. Investment return and principal will fluctuate, so that shares, when redeemed, may be worth more or less than their original cost. Performance, especially for very short periods of time, should not be the sole factor in making an investment decision. Date range based on time period selected. There are significant differences in the risk and volatility of the fund relative to an index or benchmark.
The predecessor, though managed using substantially the same strategy as that being pursued on behalf of the Fund, was not subject to the same investment restrictions, diversification requirements, limitations on leverage and other regulatory restrictions that may be applicable to the funds in the benchmark categories. As a result, performance comparisons may be less meaningful. An investor cannot invest directly in an index. Moreover, indices do not reflect commissions or fees which reduce returns.
Key Facts
Portfolio Statistics
Past performance is not indicative of future results. Holdings and exposures are subject to change and should not be considered investment advice. This information must be preceded or accompanied by a current prospectus. For standardized performance, please see the Performance section above.
Portfolio Statistics
Past performance is not indicative of future results. Holdings and exposures are subject to change and should not be considered investment advice. This information must be preceded or accompanied by a current prospectus. For standardized performance, please see the Performance section above.
Portfolio Statistics
Past performance is not indicative of future results. Holdings and exposures are subject to change and should not be considered investment advice. This information must be preceded or accompanied by a current prospectus. For standardized performance, please see the Performance section above.
Portfolio Statistics
Past performance is not indicative of future results. Holdings and exposures are subject to change and should not be considered investment advice. This information must be preceded or accompanied by a current prospectus. For standardized performance, please see the Performance section above.
Portfolio Statistics
Past performance is not indicative of future results. Holdings and exposures are subject to change and should not be considered investment advice. This information must be preceded or accompanied by a current prospectus. For standardized performance, please see the Performance section above.
Portfolio Statistics
Past performance is not indicative of future results. Holdings and exposures are subject to change and should not be considered investment advice. This information must be preceded or accompanied by a current prospectus. For standardized performance, please see the Performance section above.
Portfolio Statistics
Past performance is not indicative of future results. Holdings and exposures are subject to change and should not be considered investment advice. This information must be preceded or accompanied by a current prospectus. For standardized performance, please see the Performance section above.
Portfolio Statistics
Past performance is not indicative of future results. Holdings and exposures are subject to change and should not be considered investment advice. This information must be preceded or accompanied by a current prospectus. For standardized performance, please see the Performance section above.
Portfolio Statistics
Past performance is not indicative of future results. Holdings and exposures are subject to change and should not be considered investment advice. This information must be preceded or accompanied by a current prospectus. For standardized performance, please see the Performance section above.
Portfolio Statistics
Past performance is not indicative of future results. Holdings and exposures are subject to change and should not be considered investment advice. This information must be preceded or accompanied by a current prospectus. For standardized performance, please see the Performance section above.
Portfolio Statistics
Past performance is not indicative of future results. Holdings and exposures are subject to change and should not be considered investment advice. This information must be preceded or accompanied by a current prospectus. For standardized performance, please see the Performance section above.
Portfolio Statistics
Past performance is not indicative of future results. Holdings and exposures are subject to change and should not be considered investment advice. This information must be preceded or accompanied by a current prospectus. For standardized performance, please see the Performance section above.
Portfolio Statistics
Past performance is not indicative of future results. Holdings and exposures are subject to change and should not be considered investment advice. This information must be preceded or accompanied by a current prospectus. For standardized performance, please see the Performance section above.
Portfolio Statistics
Past performance is not indicative of future results. Holdings and exposures are subject to change and should not be considered investment advice. This information must be preceded or accompanied by a current prospectus. For standardized performance, please see the Performance section above.
Portfolio Statistics
Past performance is not indicative of future results. Holdings and exposures are subject to change and should not be considered investment advice. This information must be preceded or accompanied by a current prospectus. For standardized performance, please see the Performance section above.
Portfolio Statistics
Past performance is not indicative of future results. Holdings and exposures are subject to change and should not be considered investment advice. This information must be preceded or accompanied by a current prospectus. For standardized performance, please see the Performance section above.
Portfolio Statistics
Past performance is not indicative of future results. Holdings and exposures are subject to change and should not be considered investment advice. This information must be preceded or accompanied by a current prospectus. For standardized performance, please see the Performance section above.
Portfolio Statistics
Past performance is not indicative of future results. Holdings and exposures are subject to change and should not be considered investment advice. This information must be preceded or accompanied by a current prospectus. For standardized performance, please see the Performance section above.
Portfolio Statistics
Past performance is not indicative of future results. Holdings and exposures are subject to change and should not be considered investment advice. This information must be preceded or accompanied by a current prospectus. For standardized performance, please see the Performance section above.
Portfolio Statistics
Past performance is not indicative of future results. Holdings and exposures are subject to change and should not be considered investment advice. This information must be preceded or accompanied by a current prospectus. For standardized performance, please see the Performance section above.
Portfolio Statistics
Past performance is not indicative of future results. Holdings and exposures are subject to change and should not be considered investment advice. This information must be preceded or accompanied by a current prospectus. For standardized performance, please see the Performance section above.
Portfolio Statistics
Past performance is not indicative of future results. Holdings and exposures are subject to change and should not be considered investment advice. This information must be preceded or accompanied by a current prospectus. For standardized performance, please see the Performance section above.
Portfolio Statistics
Past performance is not indicative of future results. Holdings and exposures are subject to change and should not be considered investment advice. This information must be preceded or accompanied by a current prospectus. For standardized performance, please see the Performance section above.
Portfolio Statistics
Past performance is not indicative of future results. Holdings and exposures are subject to change and should not be considered investment advice. This information must be preceded or accompanied by a current prospectus. For standardized performance, please see the Performance section above.
Portfolio Statistics
Past performance is not indicative of future results. Holdings and exposures are subject to change and should not be considered investment advice. This information must be preceded or accompanied by a current prospectus. For standardized performance, please see the Performance section above.
Top 10 Holdings
Current and future portfolio holdings are subject to risk.
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Past performance is not indicative of future results. Portfolio holdings and exposures are subject to change and should not be considered investment advice. The fund also holds cash and equivalents which are excluded from the allocation of net assets shown.
Negative weightings may result from specific circumstances (including timing differences between trade and settle dates of securities purchased by the funds) and/or the use of certain financial instruments, including derivatives, which may be used to gain or reduce market exposure and/or risk management.
The use of derivatives such as options involves risks different from, or possibly greater than, the risks associated with investing directly in securities including leverage risk and tracking risk. Long options positions may expire worthless.
Past performance is not indicative of future results. Portfolio holdings and exposures are subject to change and should not be considered investment advice. The fund also holds cash and equivalents which are excluded from the allocation of net assets shown.
Negative weightings may result from specific circumstances (including timing differences between trade and settle dates of securities purchased by the funds) and/or the use of certain financial instruments, including derivatives, which may be used to gain or reduce market exposure and/or risk management.
Fees and Expense Ratios
The Fund’s adviser has contractually agreed to reduce fees and reimburse expenses until at least October 31, 2024 terminable upon 60 days’ notice, so that total annual Fund Operating Expenses after waiver will not exceed 1.80%, 2.55%, and 1.55% of average daily net assets attributable to Class A, C, and I respectively.
Fund distributions will vary depending upon market conditions and number of shares outstanding. All dates and distributions are subject to board approval. Past distributions are no guarantee of future distributions or performance results.
Performance quoted represents past performance, which is no guarantee of future results. Current performance may be lower or higher than performance data shown. Investment return and principal will fluctuate, so that shares, when redeemed, may be worth more or less than their original cost. For performance information current to the most recent month end, please call (888) 524-9441.
This information is not intended to cover the complexities of a shareholder’s individual tax situation. Because tax laws vary among states, you should consult your tax advisor about the specific rules in the state(s) in which you pay income taxes.
Managers
Burland East
Co-Portfolio Manager Chief Executive Officer of American Assets Capital Advisers (AACA)
Read Bio Firm OverviewBiography
Mr. East has over 30 years of experience on Wall Street as a sell-side securities analyst and investment banker. While at Wachovia Securities and its predecessor companies, Mr. East managed numerous teams of securities analysts and investment bankers and raised approximately $15 billion in capital (mostly equity) from sophisticated investors globally over three cycles in 142 large-scale real estate transactions including 26 initial public offerings, 40 follow-on offerings and 19 private equity transactions, as well as numerous converts, preferred stock and bond offerings, tenders, mergers, strategic advisory assignments and mezzanine debt placements.
He currently serves on the Board of Advisors of Comunidad Realty Partners, a dynamic real estate investment firm specializing in multifamily apartment communities in densely-populated Hispanic neighborhoods. He previously served on the Leadership Council at USC's Lusk Center for Real Estate and the Board of Directors of Excel Trust Inc., a NYSE-listed equity REIT. Mr. East also served on the Associate Board of Governors for NAREIT.
Mr. East has spoken at over 250 large real estate industry events in the United States, Europe and Asia, and has co-chaired events like NAREIT’s Annual Convention.
Mr. East was honored by Dow Jones/Realty Stock Review as an Outstanding Sell Side Analyst, Honorable Mention, in 1996, 1997 and 1998. Mr. East has lectured at USC Marshal School of Business, Kellogg School at Northwestern, University of San Diego, and University of Wisconsin. In addition, Mr. East has authored widely distributed research on real estate securities, including numerous articles for major publications like Barron's.
Mr. East has an MBA from Loyola College, Baltimore, Maryland and is a Chartered Financial Analyst (CFA).
Firm Overview
American Assets Capital Advisers (AACA)
Founded in 2011 American Assets Capital Advisers is the sub-adviser to the flagship Altegris mutual fund RAAIX. AACA is based in San Diego and specializes in trading real estate securities which include REITs, real estate operating companies, lodging and gaming, housing, land development, real estate services, and real estate finance. With deep experience in many facets of the real estate sector, AACA focuses on owning companies in sub-sectors where the tenant is denied choice. This situation most often occurs when the following four characteristics are present:
- Few sector participants
- High barriers to entry for new owners/developers
- High barriers to exit for tenants
- High secular demand drivers
The combination of these four characteristics (or some subset) creates a competitive landscape where tenants have few(er) options to move or play one building owner against another. Properties with these characteristics command higher occupancy rates and better rents, which in turn create more valuable portfolios for shareholders through enhanced dividends and higher real estate values. The strategy also has the ability to take short positions seeking to generate alpha, hedge systematic risks, or hedge the current stage of the real estate market cycle.
The AACA global long/short hedge fund strategy began trading in 2011 and was converted to its current mutual fund structure (RAAIX) which inherited the track record of its Predecessor Fund In addition to RAAIX, AACA sub-advises for the long-only Dunham Real Estate Fund (DNREX). To learn more, please visit https://aacadvisers.com/
Creede Murphy
Co-Portfolio Manager Chief Operating Officer of American Assets Capital Advisers (AACA)
Read Bio Firm OverviewBiography
Mr. Murphy has over 10 years of analyst experience in investment management, providing investment research, financial modeling, security valuation, and general portfolio management services. He is also a licensed architect with 10 years of experience in architecture and real estate development which gives him a unique insight into real estate deals and investment opportunities.
Mr. Murphy holds a Masters of Business Administration from the University of California San Diego, where he studied Modern Portfolio Theory under Nobel Laureate Harry Markowitz, and holds a Masters of Architecture and a Bachelors of Arts in Architecture.
Mr. Murphy also stands as a Level II candidate in the CFA program, Licensed Architect (NM) of National Council of Architectural Registration Boards, and Series 65 License holder.
Firm Overview
American Assets Capital Advisers (AACA)
Founded in 2011 American Assets Capital Advisers is the sub-adviser to the flagship Altegris mutual fund RAAIX. AACA is based in San Diego and specializes in trading real estate securities which include REITs, real estate operating companies, lodging and gaming, housing, land development, real estate services, and real estate finance. With deep experience in many facets of the real estate sector, AACA focuses on owning companies in sub-sectors where the tenant is denied choice. This situation most often occurs when the following four characteristics are present:
- Few sector participants
- High barriers to entry for new owners/developers
- High barriers to exit for tenants
- High secular demand drivers
The combination of these four characteristics (or some subset) creates a competitive landscape where tenants have few(er) options to move or play one building owner against another. Properties with these characteristics command higher occupancy rates and better rents, which in turn create more valuable portfolios for shareholders through enhanced dividends and higher real estate values. The strategy also has the ability to take short positions seeking to generate alpha, hedge systematic risks, or hedge the current stage of the real estate market cycle.
The AACA global long/short hedge fund strategy began trading in 2011 and was converted to its current mutual fund structure (RAAIX) which inherited the track record of its Predecessor Fund In addition to RAAIX, AACA sub-advises for the long-only Dunham Real Estate Fund (DNREX). To learn more, please visit https://aacadvisers.com/
Documents
Legal and Compliance
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Quarterly Fact Sheet
A quick stat sheet on performance, contribution, manager updates, and key fund facts.
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Read MoreInvestment Strategy
A deep dive on portfolio positioning, off-index characteristics and investment strategy developed by AACA.
Watch NowQ1 2023 Portfolio Update
A quarterly webinar event to discuss recent performance, sector attribution and current themes in the portfolio.
Watch NowCAREFULLY CONSIDER THE FUND'S INVESTMENT OBJECTIVES, RISKS, CHARGES AND EXPENSES AS DETAILED IN ITS PROSPECTUS AND SUMMARY PROSPECTUS, WHICH CAN BE OBTAINED BY CALLING (888) 524-9441. BEFORE INVESTING, READ THE PROSPECTUS CAREFULLY FOR ADDITIONAL INFORMATION ABOUT THE FUND AND ITS RISKS.
Funds distributed by Northern Lights Distributors, LLC. Altegris Advisors and Northern Lights are not affiliated.
Important Risk Disclosures
THE FUND MAY NOT BE SUITABLE FOR ALL INVESTORS
Investing involves risk, including possible loss of principal. You may have a gain or loss when you sell shares. There can be no assurance that the Fund will achieve its investment objectives. Concentrating the Fund’s investments in real estate securities subjects it to the same risks as direct investments in real estate, and real estate is particularly sensitive to economic downturns. The Fund will leverage investments, as deemed appropriate, to the extent permitted by its investment policies and applicable law, which will magnify the impacts of increases or decreases in the value of Fund investments. The Fund’s investment in ETFs or other investment funds will subject it to the risks and expenses affecting those funds. The Fund’s use of short selling involves increased risks and costs, as the Fund may pay more for a security than it receives in a short sale, with potentially significant and possibly unlimited losses. Investments in non-US securities pose additional risks to the Fund, as compared to U.S. securities, due to currency fluctuation, adverse political or economic conditions, and differing audit and legal standards (risks that are magnified for investments in emerging markets). The Fund may invest in options and derivative instruments, which can be more volatile. less liquid and increase risk of loss, as compared to traditional securities. Derivatives and options can be subject to risks of counterparty default and adverse tax treatment. Investing in sector funds is more volatile as compared to broadly diversified funds, as there is greater concentration risk due to investing in the same or similar issuers and offerings. The Fund is non-diversified and can invest a greater portion of its assets in securities of the same issuers than a diversified fund, and therefore a change in the value of a single security could cause greater fluctuation in the Fund’s share price than would occur if it were diversified. The Fund trades actively, which can increase volatility and costs due to high turnover.
ALTEGRIS ADVISORS
Altegris Advisors, LLC is a CFTC- and NFA-registered commodity pool operator and SEC-registered investment adviser that manages funds pursuing alternative investment strategies.
INDEX DESCRIPTIONS
An index is unmanaged, not available for direct investment, and its performance does not reflect transaction costs, fees, or expenses.
Dow Jones US Real Estate Total Return (TR) Index: The Dow Jones US Real Estate Total Return Index tracks the performance of real estate investment trusts (REITs) and other companies that invest directly or indirectly in real estate through development, management, or ownership, including property agencies.
S&P 500 TR Index: The S&P 500Total Return Index is is a broad-based index, the performance of which is based on the performance of 500 widely held common stocks chosen for market size, liquidity, and industry group representation.
GLOSSARY
Long. Buying an asset/security that gives partial ownership to the buyer of the position. Long positions profit from an increase in price.
Short. Selling an asset/security that may have been borrowed from a third party with the intention of subsequently buying it back. Short positions profit from a decline in price. If a short position increases in price, the potential loss of an uncovered short is unlimited.
Alpha. Gauges relative positive or negative performance of an investment as compared to a benchmark.
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Policies + Forms
PAST RESULTS ARE NOT NECESSARILY INDICATIVE OF FUTURE RESULTS. THERE IS NO GUARANTEE THAT ANY INVESTMENT WILL ACHIEVE ITS OBJECTIVES, GENERATE PROFITS OR AVOID LOSSES.
Alternative investments are complex and can involve a high degree of risk. They may not be suitable for everyone as they can be illiquid, highly leveraged, speculative, non-diversified, volatile and/or subject to potentially substantial loss. Alternative investments may also lack transparency, trade in non-U.S. markets, and have tax structures resulting in delayed tax reporting. Alternative investments offered privately, as compared to mutual funds, are subject to less regulation and may charge higher fees, while mutual funds, though more regulated, still involve risks including possible loss of principal.
Investment advisory services provided by Altegris Advisors, LLC, a registered investment adviser and commodity pool operator. Securities may be offered through a 3rd party marketing partner Destra Capital Investments, LLC, a non-affiliated registered broker-dealer, and member of FINRA and SIPC. Such registrations and memberships in no way imply a regulator’s endorsement, nor any level of skill or training. The information on this site is not intended, nor should it be construed as, investment, tax, or legal advice, or a recommendation, offer or solicitation of an investment. Such information is subject to change, incomplete and represents Altegris’ opinions and beliefs which are believed to be from reliable sources, but their accuracy cannot be guaranteed and should not be relied upon when making investment decisions.