The Teton Tactical Growth strategy consists of individual stocks, ETFs, and cash intended to invest tactically to achieve market returns with lower volatility than the S&P 500 market 1. Each type of investment’s purpose is described below.
Exchange Traded Funds (ETF) —
The ETF’s purpose is to mirror the macro economy as seen by the strategy manager. There are no restrictions on what type of ETFs can be used as long as they are approved by RBC Portfolio Focus guidelines. Additionally, ETFs can be used to gain exposure to the fixed income markets as deemed necessary due to market conditions.
Individual stocks — The individual stocks are intended to generate Alpha 2 within the Teton Equity Model. There are no restrictions as to sector, market capitalization, sector or region as long as they are approved by the RBC Portfolio Focus guidelines.
Cash — U.S. dollars, short term treasuries, bonds, bond funds and CD’s can be used without restraint
Teton Tactical Growth investment guidelines
The investment parameters are as follows:
- Maximum initial exposure to one ETF or individual stock is 8% weighting of the strategy.
- Minimum initial exposure to one ETF or individual stock is 1%
- Weighting will be adjusted after initial purpose on a weekly basis as determined by the strategy manager
- Mandatory sale of any ETF or individual stock if that holding falls below 12% of the initial purchase price
- Dividends to be paid in cash, unless determined by the strategy manager
- We would like to make you aware that the security you purchased may be considered to be a speculative and complex product that may not be suitable for a retail investor. Risks associated with non-traditional Exchange Traded Products and non-traditional Mutual Funds (i.e. leveraged or inverse Exchange Traded Products or Mutual Funds) include, but are not limited to: a deviation from the performance of the underlying index due to a daily, monthly or other periodic reset feature and the use of a range of complex investment strategies including swaps, futures contracts and derivatives to achieve their stated objective. This deviation is magnified by the volatility in the underlying index and will cause returns that vary from the returns of the underlying index.
For more information regarding non-traditional Exchange Traded Products and non-traditional Mutual Funds, please consult the FINRA website at www.finra.org. Available resources include an investor alert, FAQ, podcast, Fund Analyzer and regulatory notices.
- There is no limit as to the % of cash or short term investment alternatives that can be held within the Teton Tactical Growth
1. Investors should consider the investment objectives, risks, and charges and expenses of a fund carefully before investing. Prospectuses containing this and other information about the fund are available by contacting your RBC Wealth Management Financial Advisor. Please read the prospectus carefully before investing to make sure that the fund is appropriate for your goals and risk tolerance. Historical fund performance does not guarantee the same results in the future. Principal value, share prices and investment returns fluctuate with market conditions. Your investment may be worth more or less than your original cost when you redeem your shares. Past performance does not indicate future results.