SignalPoint Capital Management, an exchange-traded funds (ETF) strategist, has launched the SignalPoint Global Alpha Fund, the firm’s first open-ended mutual fund, which is based on its separately managed account strategies.
The fund offers both investor and institutional share classes, trading under symbols SPGAX, SPGCX and SPCFX.
By employing a dynamic modelling process, the fund focuses on improving performance, preserving capital and reducing investor stress across various market cycles. SignalPoint’s disciplined process assesses real-time market risk and filters out emotional factors, such as market fear, irrational exuberance and investor uncertainty. Based on its risk assessment, the investment team increases and decreases market exposure by systematically adjusting cash allocations with a focus on managing risk and improving returns.
"Typically, advisors take a ‘set it and forget it’ approach to ETF portfolio,” says Michael Orzel, chief executive officer of SignalPoint Capital Management. "At SignalPoint, we believe there’s a better way. This fund is designed to provide access to a dynamic ETF strategy that focuses on capturing gains and reducing downside risk in various market environments. We believe the result is a strategy that allows advisors to focus on meeting client needs with confidence that they are actively investing in a dynamic and changing market."
The fund utilises First Trust’s AlphaDEX diverse suite of Enhanced Index ETFs to allocate assets across styles, sectors and countries. Developed by First Trust Portfolios, LP (First Trust), the AlphaDEX ETFs apply an enhanced indexing approach. By weighting components through a fundamental, rules-based methodology, the AlphaDEX ETFs seek to generate positive alpha versus traditional market-cap weighted indexes.
"We are honoured to have a suite of ETFs featured in SignalPoint’s first mutual fund," says Andy Subramanian, senior vice president of First Trust Advisors. "This opportunity enhances the ability to bring quality ETF solutions to a wide range of investors. SignalPoint’s dynamic approach is a nice complement to the AlphaDEX methodology."
SignalPoint has plans to distribute the fund alongside its existing separately managed account strategies through independent, regional and wirehouse advisors. According to Anthony Carrubba, SignalPoint’s national sales director, "We will be partnering with Multi Funds LLC, utilising its team of seasoned regional sales professionals to introduce advisors to SignalPoint, educate them on our process and provide ongoing support in the field."