|Objective: Seeks to achieve long-term capital appreciation. The Fund also seeks to preserve capital in down markets.|
|Sub-Advisor: Analytic Investors†|
|Benchmark: Russell 1000 Index|
|Morningstar Category: Long/Short Equity|
Past returns shown do not guarantee future results. Current performance may be lower or higher. Call 888-736-1227 for the latest month-end returns. Return and principal value will fluctuate so that shares, when redeemed, may be worth more or less than original cost. Other share class performance may vary.
The 361 Domestic Long/Short Equity Fund, sub-advised by Analytic Investors, seeks to deliver an equity-like return with significantly less variability by investing across domestic equity markets, taking advantage of the low volatility anomaly by going long lower volatility stocks and shorting higher volatility stocks, and dynamically allocating to high predicted alpha stocks.
Why Invest in the Fund
Enhance Core Allocations
Seeks to bolster traditional elements of a core allocation (stocks and bonds) enhancing the portfolio’s overall risk/return profile.
Growth While Managing Downside Risk
Quantitative approach that pursues equity-like returns with significantly less volatility than the benchmark.
Structural elements combined with dynamic factor models seeks meaningful alpha from both long and short exposures.
Portfolios are constructed with a 100% long exposure to stocks that have lower predicted betas and positive predicted alphas. Each portfolio has short exposure ranging from 25% to 35% consisting of stocks with higher predicted betas, and lower predicted alphas. This results in a portfolio that has roughly 70% net exposure to its respective index, but with a targeted beta of 0.4-0.6.
Returns include reinvestment of dividends and income.
† Analytic Investors, LLC is a part of Wells Capital Management, a registered investment advisor and a wholly owned subsidiary of Wells Fargo Asset Management Holdings, LLC.
Investing involves risk, including possible loss of principal. The potential loss from a short sale is theoretically unlimited since the appreciation of the underlying asset also is theoretically unlimited. Frequent trading by the Fund may reduce returns and increase the number of taxable transactions. Concentration of its portfolio in relatively few issuers may make the Fund more volatile than a diversified fund.
You should consider the Fund’s investment objectives, risks, charges and expenses carefully before investing. For a prospectus, or summary prospectus, that contains this and other information about the Funds, call 1-888-736-1227. Please read the prospectus or summary prospectus carefully before investing.
The 361 Funds are distributed by IMST Distributors, LLC.
% Total Returns* Returns shown over one year are annualized. Returns include the reinvestment of dividends and income.
% Calendar Year ReturnsPast returns shown do not guarantee future results. Current performance may be lower or higher. Call 888-736-1227 for the latest month-end returns. Return and principal value will fluctuate so that shares, when redeemed, may be worth more or less than original cost.
**2016 return is since the Fund's inception of 3/31/2016.
Expense Ratio (%)†The Adviser has contractually agreed to maintain the total annual fund operating expenses at stated levels, exclusive of certain expenses such as acquired fund expenses and dividend and interest expenses on short sales until 2/28/2019. See Prospectus for additional details.
Our strategy combines decades of research into the low volatility anomaly, as well as research into drivers of stock returns over time, to build a portfolio that is 100% long stocks with low predicted beta/high predicted alpha and is 30% short stocks withhigh predicted beta/low predicted alpha. Using multiple lenses while viewing stocks not only provides diversification, but also multiple sources of potential return.