RIDGEFIELD, CT--(Marketwired - Mar 12, 2014) -
+ SONEX ranked in top 1 percent in Multialternative category for rolling 1-year returns
+ SONEX only five-star multi-manager fund in Multialternative or Long/Short categories
Simple Alternatives, LLC, a leading alternative mutual fund company focused on providing investors better access to hedge fund managers, announced today that its flagship S1 Fund (NASDAQ: SONEX) was ranked in the top 1 percent for total returns in the Morningstar Multialternative category with a #3 ranking among 271 funds for the one-year period ended February 28th, 2014. The S1 Fund is a multi-manager, long/short equity mutual fund.
"We are very pleased with the continued success of the S1 Fund (SONEX)," said Jim Dilworth, CEO and founder of Simple Alternatives. "The S1 Fund received a five-star rating after passing the three-year mark, and has beaten the returns of 99% of its peers in the past year, according to Morningstar data. This is a testament to the quality and dedication of our fund managers, and demonstrates to investors that they have the potential to achieve superior risk-adjusted returns while enjoying the diversification benefits of a multi-manager fund."
The S1 Fund (SONEX) received Lipper Leader ratings for preservation, consistent returns and total returns for both the three-year period and overall, and achieved a Lipper Leader rating for tax efficiency overall, as of February 28, 2014. The designations for consistent returns and total returns were achieved among 101 funds in Lipper's Absolute Return Funds category.
Simple Alternatives believes that small to mid-sized hedge fund managers who have proven short-selling experience are most likely to outperform over a full market cycle. For years, foundations, endowments and other large financial institutions have come to rely on the skilled managers at long/short equity hedge funds to provide a smoother return profile.
Through a disciplined investment process that focuses on strategy allocation, manager selection and risk management, the S1 Fund seeks to grow capital regardless of market direction. Financial advisors use alternative strategies like the S1 Fund in a portfolio to add diversification, lower volatility and downside risk.
About Simple Alternatives, LLC
Simple Alternatives is an investment manager focused on liquid alternative strategies. The company is 100% independent and employee owned. Simple Alternatives' S1 Fund (SONEX) is a multi-manager alternative mutual fund that utilizes a portfolio of skilled (fundamentally-based) long/short equity managers who each bring a unique edge to the portfolio. The S1 Fund (the "Fund") seeks to provide long-term capital appreciation with an emphasis on absolute (positive) returns and low correlation to traditional financial market indices such as the S&P 500® Index. Structured as a mutual fund, the S1 Fund offers direct access to long/short equity strategies to a wide range of investors, with the benefits of daily liquidity, high transparency and low investment minimums.
For more information on Simple Alternatives, LLC and the S1 Fund please visit www.simplealternatives.com
Source: Morningstar.com, http://quotes.morningstar.com/fund/f?t=SONEX®ion=usa&culture=en-US, February 28, 2014.
About Morningstar Ratings™
As of 2/28/14, the Simple Alternatives S1 Fund was rated against 144 Multialternative Funds in the last three years and received a five-star rating.
For each fund with at least a three-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 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 three-, five- and ten-year (if applicable) Morningstar Rating metrics.
All references to total return represent a fund's gains over a specified period of time. Total return includes both income (in the form of dividends or interest payments) and capital gains or losses (the increase or decrease in the value of a security). Morningstar calculates total return by taking the change in a fund's NAV, assuming the reinvestment of all income and capital gains distributions (on the actual reinvestment date used by the fund) during the period, and then dividing by the initial NAV.
Unless marked as load-adjusted total returns, Morningstar does not adjust total return for sales charges or for redemption fees. (Morningstar Return, Morningstar Risk-Adjusted Ratings, and the load-adjusted returns do incorporate those fees.) Total returns do account for management, administrative, and 12b-1 fees and other costs automatically deducted from fund assets.
Morningstar category rankings are based on total return, without the effect of sales charges. As of 2/28/14, Simple Alternatives S1 Fund was ranked # 3 among 271 multialternative funds for the 1-year period, and #16 among 144 funds for the 3-year period. The Fund is not old enough to have 5-year and 10-year rankings
© 2014 Morningstar, Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results.
About LIPPER LEADERS RATING SYSTEM
A Lipper Leader is a fund that has provided superior results when compared to a group of similar funds.
The Lipper Rating for consistent return is based on risk-adjusted return. The rating for preservation reflects a fund's ability to preserve capital in a variety of markets. The rating for tax efficiency reflects a fund's success in deferring taxes relative to similar funds.
The ratings are subject to change every month and are calculated for the following time periods: 3- year, 5-year, 10-year, and overall. The overall calculation is based on an equal-weighted average of percentile ranks for the metrics over 3-year, 5-year, and 10-year periods (if applicable). The highest 20% of funds in each classification are named Lipper Leaders for Lipper's. The next 20% receive a rating of 4; the middle 20% are rated 3; the next 20% are rated 2, and the lowest 20% are rated 1.
As of 2/28/14, Simple Alternatives S1 Funds received Lipper Ratings of 5 for total return and consistent return for both the 3-year and overall periods, among 101 absolute return funds. The S1 Fund also received Lipper Ratings of 5 for Preservation for the same periods. The Fund received an overall Lipper Rating of 5 for tax efficiency and a rating of 4 for the 3-year period.
© 2011 Lipper, a Thomson Reuters Company. Republication or redistribution of Lipper content, including by framing or similar means, is prohibited without the prior written consent of Lipper. "Thomson Reuters" and the Thomson Reuters logo are trademarks of Thomson Reuters and its affiliated companies and are used herein under license.
The Fund is non-diversified and may focus its investments in the securities of a comparatively small number of issuers. Concentration in securities of a limited number of issuers exposes a fund to greater market risk and potential monetary losses than if its assets were diversified among the securities of a greater number of issuers. The Fund may invest in small- and medium-sized companies which involve greater risk than investing in larger, more established companies, such as increased volatility of earnings and prospects, higher failure rates, and limited markets, product lines or financial resources.
The Fund may invest in foreign or emerging markets securities which involve special risks, including the volatility of currency exchange rates and, in some cases, limited geographic focus, political and economic instability, and relatively illiquid markets.
The Fund may invest in debt securities which are subject to interest rate risk. An increase in interest rates typically causes a fall in the value of the debt securities in which the Fund may invest. The Fund may also invest in high yield, lower rated (junk) bonds which involve a greater degree of risk and price fluctuation than investment grade bonds in return for higher yield potential. The Fund's distressed debt strategy may involve a substantial degree of risk, including investments in sub-prime mortgage securities.
The Fund may purchase securities of companies in initial public offerings. Special risks associated with these securities may include a limited number of shares available for trading, unseasoned trading, lack of investor knowledge of the company and limited operating history. The Fund may leverage transactions which include selling securities short as well as borrowing for other than temporary or emergency purposes. Leverage creates the risk of magnified capital losses.
The Fund may also invest in derivatives which can be volatile and involve various types and degrees of risks, depending upon the characteristics of a particular derivative. The Fund may invest in options and futures which are subject to special risks and may not fully protect the Fund against declines in the value of its stocks. In addition, an option writing strategy limits the upside profit potential normally associated with stocks. Futures trading is very speculative, largely due to the traditional volatility of futures prices.
Investors should carefully consider the Fund's investment objectives, risks, charges and expenses before investing. For a summary prospectus, or prospectus that contains this and other information, call 866-882-1226. Read the prospectus carefully before investing.
The S1 Fund is distributed by Foreside Funds Distributors LLC Berwyn, PA who is not affiliated with Simple Alternatives, LLC