Shelton Tactical Credit Fund (DEBTX)

Fund Objective

Seeks to achieve capital appreciation and income.

Strategy Highlights

  • The Fund is managed as a total return fund, employing a “credit long/short” investment strategy.
  • The Fund employs an opportunistic relative-value credit strategy focused on a portfolio of credit-related instruments, including U.S. high yield and investment grade municipal and corporate bonds.
  • The Fund marries a top-down macro thesis with bottom-up fundamental research including relative value, event driven, special situation and arbitrage opportunities.
  • To the extent the Fund invests in tax-exempt municipal bonds, the Strategy may generate tax-advantaged income.

Overall Morningstar RatingTM

morning star rating 4  DEBTX

DEBTX received an Overall Morningstar RatingTM of 4 stars among 294 Nontraditional Bond funds, based on risk-adjusted returns, category as of 12/31/2021. Important Information for Morningstar® Rating

Fund Information

Fund Management

Important Information

It is possible to lose money by investing in the Fund. Past performance does not guarantee future results. Fund information is not intended to represent future portfolio composition. Portfolio holding are subject to change and should not be considered a recommendation to buy individual securities.

The Fund invests without restriction as to issuer capitalization, country, credit quality and without restriction as to the maturity of fixed income securities. The Fund generally will take long positions in securities believed to be undervalued and short positions in securities believed to be overvalued. The Fund typically employs derivatives for hedging purposes, such as futures contracts, options, credit-default swaps, and total return swaps.

The risk for loss on short selling is greater than the original value of the securities sold short, and theoretically is unlimited, because the price of the borrowed security may rise, thereby increasing the price at which the security must be purchased. Although the Fund intends to use derivatives to reduce risk, they may have the opposite effect and increase the volatility or magnitude of loss by the Fund. Derivatives may be illiquid and subject to the risk of default by a counter-party. The value of the Fund’s investments in fixed income securities will fluctuate with changes in interest rates. Typically, a rise in interest rates causes a decline in the value of fixed income securities. The Fund may invest in non-investment grade fixed income securities, sometimes known as “high-yield bonds” or “junk bonds,” which may subject the Fund to greater credit risk, price volatility and risk of loss than investment grade securities. Some of the “junk bonds” may include securities issued by distressed companies experiencing acquisition, merger, spinoff, restructuring, bankruptcy, downgrade, delinquency, default, or relatively poor financial performance. Distressed securities are speculative and involve substantial risks in addition to the risks of investing in junk bonds, including potential loss of the Fund’s entire investment.