ABSOLUTE Funds

Absolute Select Value ETF  [ABEQ]

Inception Date:
 January 21, 2020

Structure:
Exchange Traded Fund (ETF)

Ticker:
ABEQ

Fund Administration:
Ultimus Fund Solutions, LLC

Distributor:
Northern Lights Distributors, LLC

The Absolute Select Value ETF employs an absolute return mindset to long-only value investing, emphasizing proven business models priced at a substantial discount to our conservative estimate of fair value. The Fund’s investment methodology stresses absolute returns, blending a combination of fundamental analysis, discipline and patience with the goal of preserving and compounding capital.

Aside from our absolute return mindset, the key differentiators for the strategy is our independent research, our concentrated portfolio and our willingness to hold cash.

About the Subadviser

Founded in 1999 and located in Dallas, Texas, ST JAMES INVESTMENT COMPANY is an absolute return-oriented, “best ideas” equity manager.  Their philosophy focuses on valuation, independent fundamental research, and the view that risk is defined as a permanent loss of capital. St James seeks to make investments in a limited number of businesses that they believe are priced at a substantial discount and potentially, a significant margin of safety. St. James utilizes a long term investment horizon and they are willing to be patient and hold cash in the absence of bargains.  Additionally, they seek to avoid the herd mentality and focus on the long-term value of portfolio holdings without Wall Street conflicts of interest.

Robert Mark

Robert Mark is the co-founder and Managing Member of St. James and serves as portfolio manager for the firm’s Core Equity strategy. Robert formerly worked in the Private Client Group at Goldman Sachs in Houston after graduating from the University of Texas at Austin where he received his MBA in Finance. Robert graduated in 1989 from the United States Military Academy at West Point with a BS in Engineering.

Fund Videos

Dakota Portfolio Manager
Interview December 2022

TOPICS COVERED:

0:00-  Introduction + defining absolute return
3:30-  Central bank market perversion + opportunities
4:45-  Recency bias + current environment opportunities
7:15-  Defining risk & defining value
13:15-  Today’s market and previous bubble collapses
15:15-  “Catalysts” for investment
17:15-  23+ years of learning at St. James
21:00-  Advantages of a concentration + holding cash
23:00- Bottom up investing and generating alpha
26:00- Select Value as an allocation ingredient
28:00-  How we invest our personal capital
29:00-  Avoiding value traps
31:00-  Market opportunities
34:30-  St. James letter / speculating vs. investing
36:30-  The advantages of an actively-managed ETF

Fund Literature

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Prospectus

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Statement of Additional Information (SAI)

Additional Resources:

Shareholder Reports

Semi-Annual Report – Period Ending 9/30/23
Annual Report – Period Ending 3/31/23
Semi-Annual Report – Period Ending 9/30/22
Annual Report – Period Ending 3/31/22
Semi-Annual Report – Period Ending 9/30/21
Annual Report – Period Ending 3/31/21
Semi-Annual Report – Period Ending 9/30/20

Portfolio Commentary

Portfolio Commentary for the Absolute Select Value ETF is provided on a quarterly basis (the St James “Quarterly Letter”).  Links to recent commentaries can be found below.  If you are a financial adviser and would like to be added to our e-mail distribution list, contact us by e-mail.

Visit St. James’ Web Site for additional resources and information

Fund Inception Date: January 20, 2020

IMPORTANT RISK INFORMATION

Investors should carefully consider the Fund’s investment objectives, risks, charges and expenses before investing. This and other information is in the prospectus, a copy of which may be obtained by calling 1-833-CORE ETF (267-3383) or by clicking here. Please read the prospectus carefully before you invest.

Equity securities may fluctuate in value in response to the activities of individual companies and general market and economic conditions. While the shares of ETFs are tradable on secondary markets, they may not readily trade in all market conditions and may trade at significant discounts in periods of market stress. ETFs trade like stocks, are subject to investment risk, fluctuate in market value and may trade at prices above or below the ETFs net asset value. Brokerage commissions and ETF expenses will reduce returns. There is no guarantee that the Fund will achieve its objective.

The Fund is distributed by Northern Lights Distributors, LLC, member FINRA / SIPC. Absolute Advisers and Northern Lights Distributors, LLC are not affiliated companies.