Active Interest Rate Management Fund

 

Investment Goal

The Fund seeks to maximize investors’ total return through capital appreciation and current income by actively managing interest rate risk and to make bonds part of the wealth accumulation process.

 

 

Strategy

The Fund Invests primarily in U.S. Treasury securities. Duration – interest rate sensitivity – of the Fund is actively managed to reflect outlook for interest rates.

 

 

Highlights

• 100% of total assets will be invested in U.S. dollar-denominated securities. Potential to protect against rising interest rates and benefit from falling interest rates by actively managing the duration of the Fund

• Under normal market conditions, at least 80% of net assets, plus borrowings for investment purposes, will be invested in U.S. Treasury securities or Treasury related ETFs while maintaining an average duration between 0 and 11 years.

• Duration is managed based upon American Independence’s proprietary Interest Rate Scorecard, which uses quantitative and statistical measures to determine the interest rate outlook.

• May invest in derivatives (options and futures) for hedging and non-hedging purposes, such as to manage the effective duration of the Fund or as a substitute for direct investments.

The Fund is intended for investors seeking long-term total return and current income while investing in U.S. treasury securities.

 

Portfolio Management

T.Kirkham 'Kirk' Barneby. Chief Strategist & Portfolio Manager, Taxable Fixed Income, joined American Independance Financial Services ("AIFS") in 2008. At AIFS he utilizes a proprietary discipline, grounded in the economic theory of interest rate behavior, to manage interest rate exposure or risk in clients' bond portfolios. Prior to AIFS Mr Barneby was a Managing Member of Old Iron Hill Capital Management LLC, employing quantitatively-oriented fixed income and multi-strategy investment approaches. Previously he headed an investment group at UBS in NY that managed equity and bond portfolios with $7 Billion in assets.

 

Mr. Dorsey joined AIFS in January 2009 and is responsible for the day-to-day management and trading of the Active Treasury Management and Active Treasury Management Long/Short strategies, as well as the fixed income portion of the AIFS Nest Egg Fund family. He also assists Mr. Barnaby with research and the Interest Rate Scorecard. Prior to joining AIFS, Mr. Dorsey was the founder of Reveille Asset Mgt. Prior to starting Reveille, Mr. Dorsey was a portfolio manager with Jamison Prince Asset Mgt, Lyon Stubbs & Tompkins, Mitchell Hutchins and Bankers Trust Company. Mr. Dorsey has been in the financial services industry for 25 years and is a Chartered Financial Analyst

 

 

©2005 American Independence Financial Services, LLC

Important Disclosures

Investing in the Funds involves risk. Equity securities are more volatile and carry more risk than other forms of investments. The Funds may invest in small and mid cap securities which are more volatile than large cap stocks. Value-based investments are subject to the risk that the broad market may not recognize their intrinsic value. Investments in fixed income securities are subject to interest rate risks. The principal value of a bond falls when interest rates rise and rises when interest rates fall. During periods of rising interest rates, the value of a bond investment is at greater risk than during periods of stable or falling rates.

Investing in a single-sector mutual fund involves greater risk and potential reward than investing in a more diversified fund. By concentrating on a small number of holdings, the fund carries greater risk because each investment has a greater effect on the fund's overall performance.

For more complete information, you can obtain a prospectus containing complete information on the funds by calling 866-410-2006, or by downloading them from this web site. You should read and consider the fund’s investment objectives, risks, charges and expenses carefully before you invest or send money. Information about these and other important subjects is in the Funds’ prospectus.

Morningstar, Inc. is a leading provider of independent investment research in North America, Europe, Australia, and Asia.For each fund with at least a 3-year history, Morningstar calculates a Morningstar Rating based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a fund’s monthly performance (including the effects of sales charges, loads, and redemption fees), placing more emphasis on downward variations and rewarding consistent performance. The top 10% of funds in each category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars and the bottom 10% receive 1 star. (Each share class is counted as a fraction of one fund within this scale and is rated separately, which may cause slight variations in the distribution percentages.) The Overall Morningstar Rating for a fund is derived from a weighted average of the performance figures associated with its 3-, 5- and 10-year (if applicable) Morningstar Rating metrics.

Shares of the American Independence Funds are distributed by Matrix Capital Group, Inc., which is not affiliated with American Independence Financial Services, LLC.

NOT FDIC INSURED    MAY LOSE VALUE    NO BANK GUARANTEE