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Trending ETFs

Matisse Discounted Bond CEF Strategy

mutual fund
MDFIX
Payout Change
Pending
Price as of:
$11.0 +0.0 +0.0%
primary theme
Bond Sector Diversified
share class
MDFIX (Mutual Fund)

Matisse Discounted Bond CEF Strategy

Payout Change
Pending
Price as of:
$11.0 +0.0 +0.0%
primary theme
Bond Sector Diversified
share class
MDFIX (Mutual Fund)

Matisse Discounted Bond CEF Strategy

Payout Change
Pending
Price as of:
$11.0 +0.0 +0.0%
primary theme
Bond Sector Diversified
share class

Name

As of 10/11/2024

Price

Aum/Mkt Cap

YIELD

Annualized forward dividend yield. Multiplies the most recent dividend payout amount by its frequency and divides by the previous close price.

Exp Ratio

Expense ratio is the fund’s total annual operating expenses, including management fees, distribution fees, and other expenses, expressed as a percentage of average net assets.

Watchlist

$11.00

$70.6 M

6.65%

$0.73

3.64%

Vitals

YTD Return

14.6%

1 yr return

28.8%

3 Yr Avg Return

1.6%

5 Yr Avg Return

N/A

Net Assets

$70.6 M

Holdings in Top 10

40.8%

52 WEEK LOW AND HIGH

$11.0
N/A
N/A

Expenses

OPERATING FEES

Expense Ratio 3.64%

SALES FEES

Front Load N/A

Deferred Load N/A

TRADING FEES

Turnover 70.40%

Redemption Fee N/A


Min Investment

Standard (Taxable)

$1,000

IRA

N/A


Fund Classification

Fund Type

Open End Mutual Fund


Name

As of 10/11/2024

Price

Aum/Mkt Cap

YIELD

Annualized forward dividend yield. Multiplies the most recent dividend payout amount by its frequency and divides by the previous close price.

Exp Ratio

Expense ratio is the fund’s total annual operating expenses, including management fees, distribution fees, and other expenses, expressed as a percentage of average net assets.

Watchlist

$11.00

$70.6 M

6.65%

$0.73

3.64%

MDFIX - Profile

Distributions

  • YTD Total Return 14.6%
  • 3 Yr Annualized Total Return 1.6%
  • 5 Yr Annualized Total Return N/A
  • Capital Gain Distribution Frequency N/A
  • Net Income Ratio 2.56%
DIVIDENDS
  • Dividend Yield 6.7%
  • Dividend Distribution Frequency Monthly

Fund Details

  • Legal Name
    Matisse Discounted Bond CEF Strategy
  • Fund Family Name
    Adaptive ETFs
  • Inception Date
    Apr 30, 2020
  • Shares Outstanding
    N/A
  • Share Class
    Instl
  • Currency
    USD
  • Domiciled Country
    US
  • Manager
    Bryn Torkelson

Fund Description

The Fund is a “fund of funds” that seeks to achieve its investment objective principally through investments in unaffiliated closed-end funds that are registered under the Investment Company Act of 1940, as amended (the “1940 Act”). The closed-end funds in the Fund’s portfolio invest primarily in bonds, trade at substantial discounts relative to their underlying net asset values (“NAVs”) and pay regular periodic cash distributions. The Advisor believes this approach is capable of generating high total return and attractive income relative to many other fixed income investments.
As a matter of investment policy, the Fund will invest, under normal circumstances, at least 80% of its net assets, plus any borrowing for investment purposes, in discounted closed-end funds that primarily invest in bonds.  For purposes of this policy, a closed-end fund is considered discounted when, in the Advisor's determination, the closed-end fund’s market value is less than the value of its underlying portfolio, and a closed-end fund is considered to invest primarily in bonds when, under normal circumstances, at least 80% of its net assets, plus any borrowing for investment purposes, are invested in bonds. This policy may be changed without shareholder approval upon 60-days' prior notice to shareholders.
Grounded in academic research, the Advisor firmly believes the closed-end fund market is highly inefficient. It is the Advisor’s conviction that closed-end fund discounts display strong (and highly predictable) mean reverting tendencies (the discounts fluctuate around a long-term average discount), and it employs an investment strategy that seeks to take advantage of this concept as it relates to the bond markets specifically. In evaluating bond closed-end funds for the portfolio, the Advisor utilizes a proprietary research process that attempts to forecast whether the market discount on a bond closed-end fund will increase or decrease in the future. The process is highly quantitative and model inputs include information about the bond closed-end fund’s discount (absolute, relative, quintile, patterns, and volatility), yield, distribution history, management team, expenses, underlying portfolio investments, balance sheets, liquidity, activist involvement, and historical pricing. The Advisor then builds a portfolio of bond closed-end funds that, in its opinion, are the most attractively discounted and most likely to see their discounts close (narrow) in the future. An analysis based on the same process determines when a bond closed-end fund should be sold. The Advisor determines to sell a closed-end fund when, in its opinion, it becomes less attractively discounted and less likely to see its discount close (narrow) in the future.
The Advisor’s investment strategy seeks to capture total return potential from the following sources:
1.
NAV Movement and Base Income (Traditional) – investors can benefit when the underlying portfolio of a closed-end fund appreciates in value, and any cash distributions paid out add to total return.
2.
Closed-End Fund Discount Movement (Enhanced) – unique to closed-end funds, investors benefit when a closed-end fund’s discount closes relative to its net asset value, creating capital appreciation potential.
3.
Excess Income Due to Discount (Enhanced) – regardless of discount level, closed-end funds pay out distributions at-NAV, so discounts amplify the income level you receive.
The Advisor intends to construct a diversified portfolio that generates regular income.  Under normal market conditions, the Fund's portfolio will hold Shares of approximately 30 to 90 closed-end funds, along with cash, cash equivalents, and other types of securities in which the Fund may make limited investments.  Each closed-end fund will hold primarily bonds. The bonds held by the closed-end funds may be below investment grade (also known as “junk” bonds) but will typically be rated B or higher by Standard & Poor’s Rating Services or the equivalent by Moody’s Investor Service, Inc., or Fitch, Inc. and may be of any maturity or duration. There is no limit to the amount of the Fund’s assets that may be invested in below investment grade bonds through its investments in closed-end funds. While the Advisor generally expects a majority of the Fund’s assets to be invested in investment grade bonds (rated BBB or higher by Standard & Poor’s Rating Services or the equivalent by Moody’s Investor Service, Inc., or Fitch, Inc.), when discounts are attractive, up to two-thirds of the portfolio may be invested in below-investment grade bonds through its investments in closed-end funds. In addition, the closed-end funds will invest in loans, preferred securities, convertible securities, foreign income securities, and derivative instruments for both investment and hedging purposes, and will utilize leverage to acquire their underlying portfolio investments.
The Fund's direct investments will be exclusively in US-traded and US-registered securities; however, the closed-end funds will own foreign-registered and foreign-traded securities.
Under normal circumstances, the Fund may hold up to 20% of its net assets in cash or cash equivalents. Cash equivalents, which can include money market funds, are instruments or investments of such high liquidity and safety that they are considered almost as safe as cash. Based upon the Advisor's view of available investment opportunities, as well as for cash management purposes, the Fund's portfolio will include cash and cash equivalents that provide a temporary pool of liquidity for future investments, redemptions, and other Fund expenses.  The Fund actively trades its portfolio investments, which may lead to higher transaction costs that may affect the Fund’s performance.
To take advantage of opportunities to invest, the Fund may borrow money for investment purposes (leverage). Any borrowing by the Fund will be subject to the limitations set forth in Act, and relevant interpretive positions of the staff of the U.S. Securities and Exchange Commission (the “SEC”), which presently allows the Fund to borrow (including pledging, mortgaging, or hypothecating assets) in an amount up to one-third of its total assets, which include assets purchased with borrowed money.
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MDFIX - Performance

Return Ranking - Trailing

Period MDFIX Return Category Return Low Category Return High Rank in Category (%)
YTD 14.6% -8.0% 14.7% 0.31%
1 Yr 28.8% -6.4% 30.0% 0.15%
3 Yr 1.6%* -16.8% 16.7% 39.09%
5 Yr N/A* -14.1% 14.4% N/A
10 Yr N/A* -6.9% 6.9% N/A

* Annualized

Return Ranking - Calendar

Period MDFIX Return Category Return Low Category Return High Rank in Category (%)
2023 5.5% -12.0% 15.7% 6.73%
2022 -21.7% -31.8% 18.4% 94.51%
2021 0.7% -16.2% 25.7% 15.40%
2020 N/A -31.1% 18.7% N/A
2019 N/A -6.1% 15.3% N/A

Total Return Ranking - Trailing

Period MDFIX Return Category Return Low Category Return High Rank in Category (%)
YTD 14.6% -8.0% 14.7% 0.31%
1 Yr 28.8% -6.4% 30.0% 0.15%
3 Yr 1.6%* -16.8% 16.7% 39.09%
5 Yr N/A* -14.1% 14.4% N/A
10 Yr N/A* -6.9% 6.9% N/A

* Annualized

Total Return Ranking - Calendar

Period MDFIX Return Category Return Low Category Return High Rank in Category (%)
2023 13.6% -6.9% 22.2% 3.21%
2022 -15.8% -31.8% 21.1% 94.36%
2021 4.8% -13.5% 49.9% 13.29%
2020 N/A -28.6% 24.1% N/A
2019 N/A -4.8% 19.1% N/A

NAV & Total Return History


MDFIX - Holdings

Concentration Analysis

MDFIX Category Low Category High MDFIX % Rank
Net Assets 70.6 M 2.53 M 143 B 88.82%
Number of Holdings 54 4 9195 89.81%
Net Assets in Top 10 22.6 M -204 M 80.4 B 87.50%
Weighting of Top 10 40.78% 6.2% 209.5% 30.17%

Top 10 Holdings

  1. MONEYMKT 12.88%
  2. CLOSED-E 3.44%
  3. CLOSED-E 3.24%
  4. CLOSED-E 3.17%
  5. CLOSED-E 3.12%
  6. CLOSED-E 3.06%
  7. CLOSED-E 3.05%
  8. CLOSED-E 3.02%
  9. CLOSED-E 2.98%
  10. CLOSED-E 2.82%

Asset Allocation

Weighting Return Low Return High MDFIX % Rank
Stocks
86.49% -4.92% 99.66% 6.48%
Cash
13.51% -94.66% 91.07% 12.04%
Convertible Bonds
0.59% 0.00% 33.50% 63.23%
Preferred Stocks
0.00% 0.00% 26.42% 82.41%
Other
0.00% -73.61% 112.16% 83.02%
Bonds
0.00% 0.00% 192.97% 96.76%

Stock Sector Breakdown

Weighting Return Low Return High MDFIX % Rank
Energy
69.25% 0.00% 100.00% 19.66%
Consumer Cyclical
15.54% 0.00% 89.95% 9.40%
Industrials
5.69% 0.00% 100.00% 33.62%
Real Estate
4.86% 0.00% 100.00% 23.36%
Utilities
2.99% 0.00% 100.00% 25.64%
Consumer Defense
0.88% 0.00% 99.97% 29.34%
Basic Materials
0.44% 0.00% 100.00% 35.04%
Communication Services
0.19% 0.00% 100.00% 42.17%
Technology
0.17% 0.00% 28.30% 33.05%
Healthcare
0.00% 0.00% 18.60% 81.77%
Financial Services
0.00% 0.00% 100.00% 88.03%

Stock Geographic Breakdown

Weighting Return Low Return High MDFIX % Rank
US
86.49% -4.84% 99.66% 6.48%
Non US
0.00% -0.26% 17.73% 77.62%

MDFIX - Expenses

Operational Fees

MDFIX Fees (% of AUM) Category Return Low Category Return High Rank in Category (%)
Expense Ratio 3.64% 0.03% 20.67% 3.23%
Management Fee 0.65% 0.00% 2.29% 64.17%
12b-1 Fee N/A 0.00% 1.00% N/A
Administrative Fee N/A 0.00% 0.70% 50.00%

Sales Fees

MDFIX Fees (% of AUM) Category Return Low Category Return High Rank in Category (%)
Front Load N/A 0.00% 5.75% N/A
Deferred Load N/A 1.00% 1.50% N/A

Trading Fees

MDFIX Fees (% of AUM) Category Return Low Category Return High Rank in Category (%)
Max Redemption Fee N/A 0.50% 2.00% N/A

Related Fees

Turnover provides investors a proxy for the trading fees incurred by mutual fund managers who frequently adjust position allocations. Higher turnover means higher trading fees.

MDFIX Fees (% of AUM) Category Return Low Category Return High Rank in Category (%)
Turnover 70.40% 0.00% 632.00% 42.27%

MDFIX - Distributions

Dividend Yield Analysis

MDFIX Category Low Category High MDFIX % Rank
Dividend Yield 6.65% 0.00% 23.30% 7.03%

Dividend Distribution Analysis

MDFIX Category Low Category High Category Mod
Dividend Distribution Frequency Monthly SemiAnnual Monthly Monthly

Net Income Ratio Analysis

MDFIX Category Low Category High MDFIX % Rank
Net Income Ratio 2.56% -1.55% 11.51% 63.17%

Capital Gain Distribution Analysis

MDFIX Category Low Category High Capital Mode
Capital Gain Distribution Frequency Annually Annually Annually

Distributions History

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MDFIX - Fund Manager Analysis

Managers

Bryn Torkelson


Start Date

Tenure

Tenure Rank

Apr 30, 2020

2.08

2.1%

Mr. Torkelson is the founder and has been the chief investment officer of Matisse Capital since 2010. He has been in the investment business since 1981. He began his career with Smith Barney, spent 10 years at Dain Bosworth as a senior vice president, managing partner, and perennial Chairman’s Club member, founded Matisse Capital’s predecessor firm in 1997, and then started Matisse Capital in 2010. Mr. Torkelson received a Bachelor of Science in Finance from the University of Oregon.

Eric Boughton


Start Date

Tenure

Tenure Rank

Apr 30, 2020

2.08

2.1%

Mr. Boughton joined the predecessor firm to Matisse Capital in 2006, and has been the Portfolio Manager and Chief Analyst at Matisse Capital since 2010. Before that, Mr. Boughton was a Portfolio Manager and Analyst with 1st Source, where he co-managed a publicly traded mutual fund, created the firm’s outside mutual fund recommendation list, analyzed individual equity securities, generated investment commentary, and devised a quantitative approach to fundamentals-based security selection. Mr. Boughton received a BS degree with distinction in mathematics from the University of Houston in 1997, and is a CFA charter holder.

Tenure Analysis

Category Low Category High Category Average Category Mode
0.08 28.19 5.72 3.19