The RiverShares Moderate Tactical Income model seeks to provide total return primarily through investments in exchange traded funds that seek income including equity securities, equity income securities, alternatives, master limited partnerships, real estate investment trusts, fixed income instruments (including high yield) and other income producing assets. The mix between assets in the portfolio is determined through a fundamental selection process, a tactical overlay and a risk management discipline. The primary objective of the composite is to achieve a yield target and thus the composite’s total return is expected to have high tracking error to its stated performance benchmark.
All investments in securities, including this portfolio, include a risk of loss of the amount invested and any profits that have not been realized. Performance of any investment is not guaranteed. Markets fluctuate substantially over time, and have experienced increased volatility in recent years due to global and economic events. Fixed income securities carry inflation risk, liquidity risk, call risk and credit and default risks for both issuers and counterparties. In a rising interest rate environment, the value of fixed-income securities generally declines. Dividends are not guaranteed and are subject to change or elimination. Some of the ETFs used in this portfolio invest in securities that carry specific risks, for example: REITs, Master Limited Partnerships (MLPs), high yield securities and covered call strategies. Please see the end of this publication for more information on these types of securities and the risks associated with them.