GROSSE POINTE FARMS, Mich., June 28, 2023 (GLOBE NEWSWIRE) -- Robinson Capital Management, LLC, an independent investment advisor specializing in liquid alternative fixed income strategies, celebrates the 2-year anniversary of their ETF, the Robinson Alternative Yield Pre-Merger SPAC ETF (ticker: SPAX). The ETF was launched on June 23, 2021, in partnership with Tidal Financial Group.
Over the past two years, the fund has invested primarily in pre-merger SPACs and acquired over $27 million in assets under management. The ETF seeks to provide total return while minimizing downside risk by exiting SPAC positions prior to deal completion.
“We are delighted that SPAX has behaved exactly as we anticipated when we launched it two years ago,” said Jim Robinson the founder of Robinson Capital and lead portfolio manager for SPAX. “In a period that has been particularly challenging for investors in traditional fixed income strategies—Bloomberg Aggregate Bond Index is down 11% for trailing two years, the Bloomberg 1-3 Year Govt/Credit Index is down 3%, and T-Bills are up less than 4%--SPAX has returned a solid and steady 8% over those two years. And it did it with the credit and interest rate risk of T-Bills,” added Robinson.
“The team here at Tidal could not be prouder to celebrate the 2-year anniversary of SPAX. The team at Robinson has provided the market with a unique way to unlock alternative yields consistently and successfully, throughout challenging market conditions!” said Gavin Filmore, COO of Tidal Financial Group.
Robinson Capital invests primarily in pre-merger SPACs because of the tendency for downside mitigation (ability to redeem shares at $10/share), upside opportunity when a merger is announced, and almost zero correlation with traditional fixed income markets. Robinson continues to find SPAC shares trading at attractive prices below the current trust value; and, the trusts, which are required to invest in T-Bills, are earning an additional 5% annualized return in the current environment. Given the attractive risk versus return characteristics, the manager believes SPAX is a compelling alternative for many traditional fixed income portfolios.
The performance data quoted represents past performance. Past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when sold or redeemed, may be worth more or less than their original cost and current performance may be lower or higher than the performance quoted. Performance current to the most recent month-end can be obtained by calling (833) 743-0330. View SPAX standardized performance here. The gross expense ratio for the fund is 0.85%. The net expense ratio for the fund is 0.50%.*
*The Fund’s investment adviser has contractually agreed to reduce its unitary management fee to 0.50% of the Fund’s average daily net assets through at least August 28, 2023.
ABOUT ROBINSON CAPITAL
Founded in December 2012, Robinson Capital Management, LLC, is an independent investment advisor specialized in developing traditional and alternative fixed income solutions. Robinson’s investment approach employs both fundamental and value techniques to best identify positive risk/reward opportunities and to maintain a consistent and disciplined approach. Robinson Capital also specializes in alternative value investing strategies, particularly through special purposes acquisition companies (SPACs) and closed-end mutual funds (taxable and tax-exempt).
Robinson Capital provides customized investment management services for RIAs, family offices, broker-dealers and institutions.
The firm serves as investment sub-adviser to the Robinson Alternative Yield Pre-Merger SPAC ETF (ticker: SPAX). For more information, visit robinsonetfs.com.
About Tidal Financial Group
Formed by ETF industry pioneers and thought leaders, Tidal Financial Group sets out to revolutionize the way ETFs have historically been developed, launched, marketed, and sold. With a focus on growing AUM, Tidal offers a comprehensive suite of services, proprietary tools, and methodologies designed to bring lasting ideas to market. Tidal is an advocate for ETF innovation. The firm is on a mission to provide issuers with the intelligence and tools needed to efficiently and to effectively launch ETFs and to optimize growth potential in a highly competitive space. For more information, visit https://www.tidalfinancialgroup.com/.
DISCLOSURES
Investors should consider the investment objectives, risks, charges and expenses carefully before investing. For a prospectus or summary prospectus with this and other information about the Fund, click here. Read the prospectus or summary prospectus carefully before investing.
FUND RISKS
Investing involves risk. Principal loss is possible. ETFs may trade at a premium or discount to their net asset value. Brokerage commissions are charged on each trade which may reduce returns.
The Fund invests in equity securities and warrants of SPACs, which raise assets to seek potential business combination opportunities. Unless and until a business combination is completed, a SPAC generally invests its assets in U.S. government securities, money market securities, and cash. Because SPACs have no operating history or ongoing business other than seeking a business combination, the value of their securities is particularly dependent on the ability of the entity’s management to identify and complete a profitable business combination. There is no guarantee that the SPACs in which the Fund invests will complete a business combination or will be profitable.
Some SPACs may pursue a business combination only within certain industries or regions, which may increase the volatility of their prices. To the extent a SPAC or the fund is invested in cash or cash equivalents, this may impact the ability of the Fund to meet its investment objective. Investments in a SPAC may be considered illiquid and subject to restrictions on resale.
The Fund may purchase warrants to purchase equity securities. Investments in warrants are pure speculation in that they have no voting rights and pay no dividends. They do not represent ownership of the securities, but only the right to buy them. Warrants involve the risk that the Fund could lose the purchase value of the warrant if the warrant is not exercised or sold prior to its expiration. The Fund may also purchase securities of companies that are offered in an IPO. The risk exists that the market value of IPO shares will fluctuate considerably due to factors such as the absence of a prior public market, unseasoned trading, a small number of shares available for trading and limited information about the issuer. Such investments could have a magnified impact on the Fund.
Some sectors of the economy and individual issuers have experienced particularly large losses due to economic trends, adverse market movements and global health crises. This may adversely affect the value and liquidity of the Fund’s investments especially since the fund is non-diversified, meaning it may invest a greater percentage of its assets in the securities of a particular, industry or sector than if it was a diversified fund. As a result, a decline in the value of an investment could cause the Fund’s overall value to decline to a great degree.
The Fund is a recently organized management investment company with limited operating history and track record for prospective investors to base their investment decision.
The Fund is distributed by Foreside Fund Services, LLC.
