The Cannabis Growth Fund is one of the first open-end mutual funds to invest primarily in companies related to the cannabis industry.
The Fund plans to invest primarily in exchange listed equity securities of companies in the cannabis industry. These companies are located around the globe and engaged exclusively in legal activities under national and local laws, including U.S. federal and state law, as applicable.1,2 Many companies that the Fund seeks to hold legally participate in activities including agriculture technology, biotechnology, cultivation and retail, products and extracts, industry hemp, and ancillary products and services that complement the cannabis industry. Diversified across various subsectors to provide broad-based exposure, the Fund helps investors capitalize on the fast-growing, innovative cannabis industry.
Why Professional Management?
Today the cannabis industry is growing quickly, with a universe of over 350 small-, mid- and large-cap companies that participate in medicinal or recreational use of cannabis. As this new industry changes and expands, we believe active management has advantages over purchasing individual companies or a passive ETF. In our opinion, knowledgeable and dedicated professionals help investors mitigate inherent volatility and identify favorable growth opportunities, such as initial public offerings. The Fund also has the flexibility to use options in an attempt to enhance the Fund’s return and reduce volatility.
Asset Allocation and the Cannabis Growth Fund
The Fund is a specialty and actively managed portfolio focused on investing in the cannabis industry, providing potentially small-cap, aggressive growth exposure. When including the Fund in an overall portfolio, investors should consider their long-term objectives and goals and place the Fund appropriately within an equity portfolio.3
2 Pronouncements from the current Administration suggest the Department of Justice may take action against states to prevent them from implementing laws that authorize medical marijuana use, possession, distribution, and cultivation. This action may have a material effect on investment in companies involved in the cannabis industry.
3 Fund investments will be concentrated in an industry or group of industries, and the value of Fund shares may rise and fall more than more diversified funds.
* “The need for weed: why Wall Street is getting hooked on cannabis,” Financial Times, March 15, 2019.
You don’t get an
opportunity every day
to participate in the
very early stages of
global industry and
that is what is
Component of an Equity Portfolio
a loss in declining markets.
Cannabis Growth Fund Returns (%) as of 3/31/2020
|1 Year||SINCE INCEPTION* annualized|
|S&P 500 Index||-6.98||-4.91|
|Cannabis World Index||-74.15||-70.81|
The Fund recently experienced significant negative short-term performance due to market volatility associated with the COVID-19 pandemic.
The inception date of the Investor class is February 22, 2019; the inception date of the Institutional class is May 24, 2019. The performance figures for the Institutional class include the performance for the Investor Class for the periods prior to the start date of the Institutional class. The Investor class imposes higher expenses than the Institutional Class.
The S&P 500 Index: The S&P 500 Index is a market capitalization-weighted index of 500 widely held common stocks. The index does not reflect expenses, fees or sales charge, which would lower performance. The index is unmanaged.
Cannabis World Index: The Cannabis World Index measures the performance of exchange traded equity securities of companies that are engaged exclusively in legal cannabis activities under applicable national and local laws, including U.S. federal and state laws. The index does not reflect expenses, fees or sales charge, which would lower performance. The index is unmanaged.
CANNX NAV: $3.41 | Change: $0.13
CANIX NAV: $3.39 | Change: $0.14