Fund Facts

December 31, 2013

Fund Type:

I-shares Symbol: INCIX

A-shares Symbol: INCAX

C-shares Symbol: INCCX

Institutional Manager: James Alpha Advisors, LLC

About James Alpha Advisors, LLC

James Alpha Advisors, LLC serves as the Advisor to the James Alpha family of mutual funds and related portfolios.  They are a related entity to James Alpha Management, a family office and diversified asset management firm specializing in identifying, seeding, and growing alternative investment strategies for institutional and individual investors.  As an expert in alternative strategies James Alpha searches out top managers in the alternatives space with deep domain expertise.  Seeking proven and repeatable investment processes, James Alpha invests a significant amount of capital in each strategy and provides the ongoing operational, management and sales support to grow assets under management and build successful partnerships.

Strategic Foundation

The Portfolio will seek to achieve its investment objective by investing, under normal market conditions, primarily all of its assets in strategies, including, but not limited to, hedged and long-short strategies, which utilize fixed income and fixed income-related securities. The Portfolio intends to focus on three sub strategies:

  • Senior Loan Floating Rate Strategy – Concentrates on liquid investment opportunities in senior-secured and second-lien loans and bonds.
  • Short Duration High Yield Strategy – Seeks to generate uncorrelated returns through stable income and reduced volatility. The Portfolio managers seek to identify short-maturity high yield bonds in smaller, less followed companies.
  • Relative Value Long/Short Debt Strategy – Seeks to take advantage of perceived discrepancies in the market prices of certain fixed income strategies, as well as certain convertible bond, common stock, and derivative securities.

There is no assurance that the portfolio will achieve its investment objective. The Fund is subject to stock market risk, which is the risk that stock prices overall will decline over short or long periods, adversely affecting the value of an investment.

Mutual funds involve risk including the possible loss of principal. The Portfolio may engage in frequent trading of portfolio securities resulting in higher transaction costs, a lower return and increased tax liability. There are a number of risks associated with an investment in bank loans including credit risk, interest rate risk, liquidity risk and prepayment risk. Investments in convertible securities subject the Portfolio to the risks associated with both fixed-income securities and common stocks. Certain derivative and “over-the-counter” instruments in which the Portfolio may invest, such as over-the-counter swaps and forwards, are subject to the risk that the other party to a contract will not fulfill its contractual obligations. There is a risk that issuers and counterparties will not make payments on securities and other investments held by the Fund, resulting in losses to the Fund. Adverse changes in currency exchange rates may erode or reverse any potential gains from the Fund’s investments. The liquidity of the futures market depends on participants entering into offsetting transactions rather than making or taking delivery. OTC swap transactions are two-party transactions and are therefore often less liquid than other types of investments, and the Portfolio may be unable to sell or terminate its swap positions at a desired time or price. If the Portfolio sells (writes) a put option, there is risk that the Portfolio may be required to buy the underlying investment at a disadvantageous price. ETF’s are subject to specific risks, depending on the nature of the underlying strategy of the fund. These risks could include liquidity risk, sector risk, as well as risks associated with fixed income securities, real estate investments will be affected by changes in the foreign country’s exchange rates; political and social instability; changes in economic or taxation policies; difficulties when enforcing obligations; decreased liquidity; and increased volatility. It is possible that the hedging strategy could result in losses and/or expenses that are greater than if the Portfolio did not include the hedging strategy. High yield bonds (junk bonds) involve greater risk of default or price changes due to changes in the credit quality of the issuer. The Portfolio may hold illiquid securities that it is unable to sell at the preferred time or price and could lose its entire investment in such securities. Mortgage- and asset-backed securities are subject to prepayment rates on underlying loans. Short sales may cause the Portfolio to repurchase a security at a higher price, thereby causing the Portfolio to incur a loss.