Smith Capital Investors Funds Celebrate 3 Years With Top-Decile Performance And Fee Reduction
Funds deliver risk-adjusted solid returns while cutting fees by three basis points (bps)
SS&C Technologies Holdings, Inc. announced that the ALPS Smith Total Return Bond Fund (SMTHX) and ALPS Short Duration Bond Fund (SMDSX) have reached their three-year anniversaries.
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Since launching three years ago, SMTHX and SMDSX have collectively grown to over $2.2 billion in net assets, ranking in the top decile for annualized returns since inception (6th and 10th percentile, respectively). For risk-adjusted returns (Sharpe Ratio), SMTHX ranks in the 4th percentile and SMDSX in the 3rd percentile.
Smith Capital Investors believes the strong performance was aided by the Funds’ active management approach and dynamic portfolio positioning capability—defensive, neutral, or opportunistic—which allowed allocation flexibility in response to varied market conditions.*
“The SS&C ALPS | Smith Capital Investors partnership has a strong track record, with outperformance and asset growth in a complex fixed income environment,” said Laton Spahr*, Portfolio Manager and President of SS&C ALPS Advisors. “We are committed to delivering funds that can improve investment outcomes. Both of these funds offer actively-managed, dynamic approaches aiming to provide strong risk-adjusted returns to investors.”
One of the founding principles of Smith Capital Investors is providing positive client experiences through investment performance and personal attention to client relationships and dialogue. In response, the fee was lowered on the ALPS | Smith Total Return Bond Fund by three bps, effective June 29, 2021. This reduction positions the Fund’s “I” share below the median for its category.
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“We are incredibly proud of the results we’ve delivered in some of the most challenging markets on record. That said, our focus on investing excellence expands well beyond the competitive results we’ve produced for our investors; it’s about consistency,” said Gibson Smith*, Founder and Chief Investment Officer of Smith Capital Investors. “Few find fixed income exciting or inspiring, but for this team, it is our calling and our mission.”
*Performance data quoted represent past performance. Past performance is no guarantee of future results so that shares, when redeemed, may be worth more or less than their original cost. The investment return and principal value will fluctuate. Current performance may be higher or lower than the performance quoted. For the most current month-end performance data please call 866.759.5679. Performance includes reinvested distributions and capital gains
Important Disclosures and Definitions
An investor should consider investment objectives, risks, charges and expenses carefully before investing. To obtain a prospectus, which contains this and other information, call 1.866.759.5679 or visit www.alpsfunds.com. Please read the prospectus carefully before investing.
An investment in the Funds involves risk, including loss of principle.
Fixed Income Securities Risk. A rise in interest rates typically causes bond prices to fall. The longer the duration of the bonds held by a fund, the more sensitive it will likely be to interest rate fluctuations. Duration measures the weighted average term to maturity of a bond’s expected cash flows. Duration also represents the approximate percentage change that the price of a bond would experience for a 1% change in yield. For example: the price of a bond with a duration of 5 years would change approximately 5% for a 1% change in yield. The price of a bond with a duration of 10 years would be expected to decline by approximately 10% if its yield was to rise by +1%. Bond yields tend to fluctuate in response to changes in market levels of interest rates. Generally, if interest rates rise, a bond’s yield will also rise in response; the duration of the bond will determine how much the price of the bond will change in response to the change in yield.
The Fund’s investments in fixed-income securities and positions in fixed-income derivatives may decline in value because of changes in interest rates. As nominal interest rates rise, the value of fixed-income securities and any long positions in fixed-income derivatives held by the Fund are likely to decrease, whereas the value of its short positions in fixed-income derivatives is likely to increase.
Market Risk. Overall securities market risks may affect the value of individual instruments in which the Fund invests. Factors such as domestic and foreign economic growth and market conditions, interest rate levels, and political events affect the securities and derivatives markets. When the value of the Fund’s investments goes down, your investment in the Fund decreases in value and you could lose money.
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