Mutual Funds:
The Sound Mind Investing Funds are designed for investors who recognize the tremendous potential of Dynamic Asset Allocation, Stock Upgrading, and Sector Rotation, but who prefer to have the strategies implemented for them by professionals.
Within the Funds, we provide daily professional oversight and management. This includes the timely repositioning of the portfolios as conditions warrant, automatic portfolio rebalancing, and in taxable accounts, the simplification of receiving just one consolidated tax document per strategy. You get the best of both worlds: all the benefits of the strategies you’ve selected without the continual attention and effort required to successfully implement the strategies on your own.
Solid strategies and management you can trust are two of the key ingredients you should look for in choosing mutual funds. We believe the Sound Mind Investing Funds offer both, and invite you to examine whether they may be the right investment vehicles to help you pursue your financial goals.
**Please click on each fund picture below to learn more about each fund**
SMI Dynamic Allocation Fund
The SMI Dynamic Allocation Fund (SMIDX) uses an investing strategy called Dynamic Asset Allocation (DAA). Generally, the Fund will be invested in each of the three asset classes deemed most appropriate by SMI at any particular time.
The six asset classes utilized within DAA are:
- Domestic Equities
- International Equities
- Bonds
- Real Estate
- Precious Metals
- Cash
Markets periodically experience times of inflation, deflation, economic growth and recession. Each of these asset classes will typically respond quite differently to varying market conditions. Our research indicates that great value can be added by adjusting portfolio exposure between the six asset classes as these changes in market environments become apparent. In other words, we try to be in the right place at the right time — and possibly more importantly — to not be in the wrong place at the wrong time. This strategy involves monitoring six broad asset classes, with the portfolio typically positioned among the three that score the highest in SMI's proprietary scoring system.
Once the specific asset classes are determined, we achieve the desired exposure to each by using securities including, but not limited to, the following: ETFs, Mutual Funds, Individual Securities and derivatives.
Monthly Returns as of
SMI Dynamic Allocation Fund (SMIDX) | ||||||||
Total Returns thru | Avg. Annualized Returns | Total Return | ||||||
YTD | 1 mo. | 3 mo. | 12 mo. | 3 yr. | 5 yr. | 10 yr. | Since Inception* |
|
SMIDX | ||||||||
Mixed Benchmark1 | ||||||||
S&P 500 | ||||||||
Bloomberg US Aggregate Bond Index |
Quarterly Returns as of
SMI Dynamic Allocation Fund (SMIDX) | ||||||||
Total Returns thru | Avg. Annualized Returns | Total Return | ||||||
YTD | 1 mo. | 3 mo. | 12 mo. | 3 yr. | 5 yr. | 10 yr. | Since Inception* |
|
SMIDX | ||||||||
Mixed Benchmark1 | ||||||||
S&P 500 | ||||||||
Bloomberg US Aggregate Bond Index |
All performance figures are net of fees, and therefore the following fees have already been taken out:
Total/Gross Expense Ratio: 1.56% as of 2/28/2024 (includes expenses of underlying funds)
Adjusted Expense Ratio: 1.22% as of 2/28/2024 (excludes expenses of underlying funds)
1Mixed Benchmark consists of 60% S&P 500 and 40% Bloomberg U.S. Aggregate Bond Index performance.
*SMIDX inception date was
The performance data quoted represents past performance, and past performance is not a guarantee of future results. Investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance information quoted. To obtain performance information current to the most recent month-end, please call 1-877-SMI-FUND (877-764-3863). Performance is calculated after fees and includes the reinvestment of income dividends and capital gain distributions, if any. The performance shown does not reflect the deduction of taxes that a shareholder might pay on any of the Funds' distributions or the redemption of the Funds' shares.
The S&P 500 index is an unmanaged index commonly used to measure the performance of U.S. stocks. The Bloomberg U.S. Aggregate Bond Index is a broad-based benchmark that measures the investment grade, U.S. dollar-denominated, fixed-rate taxable bond market, including Treasuries, government-related and corporate securities, MBS (agency fixed-rate and hybrid ARM passthroughs), ABS, and CMBS. You cannot invest directly in an index.
2023 Capital Gain and Income Distributions | |||||
Record Date | 12/27/2023 | ||||
Ex-Dividend Date | 12/28/2023 | ||||
Pay Date | 12/29/2023 | ||||
SMIDX Income Distribution | $0.0215 | ||||
SMIDX Short Term Capital Gain | $0.0000 | ||||
SMIDX Long Term Capital Gain | $0.0000 |
Data represents an estimate of what will be distributed at calendar year-end. Dates above represent the scheduled December ex-dividend and pay date for the funds. The distribution figures may differ from the actual amounts to be paid in December.
Distributions | |||||
Distribution Year | Ticker | Dividend Income | Short Term Cap Gain | Long Term Cap Gain | Ex-Div Date |
2022 Distributions | SMIDX | $0.0000 | $0.0000 | $0.0000 | 12/30/22 |
2021 Distributions | SMIDX | $0.0595 | $0.6202 | $0.3586 | 12/30/21 |
2020 Distributions | SMIDX | $0.0946 | $0.1404 | $0.4260 | 12/30/20 |
2019 Distributions | SMIDX | $0.1454 | $0.0000 | $0.0000 | 12/30/19 |
2018 Distributions | SMIDX | $0.1691 | $0.0000 | $0.0000 | 12/31/18 |
2017 Distributions | SMIDX | $0.1100 | $0.0000 | $0.0000 | 12/28/17 |
2016 Distributions | SMIDX | $0.0262 | $0.0000 | $0.0000 | 12/29/16 |
2015 Distributions | SMIDX | $0.1368 | $0.0000 | $0.0000 | 12/30/15 |
2014 Distributions | SMIDX | $0.2259 | $0.0000 | $0.0871 | 12/30/14 |
2013 Distributions | SMIDX | $0.1804 | $0.0000 | $0.0000 | 12/27/13 |
Explanation of mutual fund distributions
All mutual funds must periodically distribute any profits they’ve earned to investors. The law requires a fund to pass substantially all of the net gains from the sale of securities, as well as earned dividends and interest from securities, to its shareholders. These distributions cause a taxable event for investors holding their shares in a taxable account. Those investing through tax-deferred retirement accounts do not experience a taxable event as a result of a fund’s distributions.
When a fund makes a distribution, the amount is deducted from the fund's Net Asset Value (NAV), so its listed price falls by the amount of the distribution on the Ex-Dividend date. However, it's important to realize that an investor does not lose anything from the distribution. While the fund’s price is reduced as a result of the distribution, the shareholder receives an equal amount of either cash or additional shares (if the distribution is reinvested) when the distribution takes place (Pay Date).
The SMI Funds are "funds of funds" which makes their distributions more difficult to estimate than most funds. In addition to capital gains earned from the sale of its own underlying funds throughout the year, the SMI Funds have to distribute as income any Income or Short-Term Capital Gains received in distributions from the underlying funds held in the portfolios. Estimates have been obtained from most of the underlying funds held in the portfolios, but these estimates are subject to change. As a result, the estimated income distribution above is presented as a projected range.
The SMI Multi-Strategy Fund (SMILX) conveniently combines three popular SMI strategies into one professionally managed fund.
SMILX’s portfolio will typically be invested as follows:
50% Dynamic Asset Allocation (DAA). This strategy involves shifting investment between six broad asset classes based on quantitative factors. As economic and market conditions change, the Advisor believes that being invested in the right asset classes at the right times — and just as importantly, avoiding the other asset classes — can add significant value. Dynamic Asset Allocation is also the strategy used to manage the SMI Dynamic Allocation Fund (SMIDX); please see that fund’s strategy description, above, for more details.
40% Stock Upgrading. Upgrading involves monitoring thousands of stock mutual funds and continually standing ready to replace lagging funds in each of five “risk categories” with new funds that have better current performance momentum. Stock Upgrading is also the strategy used to manage the Sound Mind Investing Fund (SMIFX); please see that fund’s strategy description, above, for more details.
10% Sector Rotation (SR). Sector Rotation provides exposure to the top performing sector(s) of the stock market via sector mutual funds and sector ETFs. Funds and/or ETFs are purchased based on their recent performance momentum, which is calculated based on multiple short-term performance periods. An Upgrading approach is then used to enforce a strict selling discipline, which determines when to move out of one sector and into another. This 10% Sector Rotation portion of SMILX may be concentrated, meaning that it may be invested in as few as one or two sectors at a time and potentially as few as one underlying mutual fund or ETF.
The Advisor believes these three strategies work together synergistically, allowing for the pursuit of higher performance through an aggressive strategy like Sector Rotation (and to a lesser extent, Stock Upgrading) by combining them with the volatility-suppressing characteristics of Dynamic Asset Allocation.
The SMI Multi-Strategy Fund provides a convenient way to invest the stock portion of a portfolio across multiple strategies.
Note: The SMI Multi-Strategy Fund is available direct and is also available on most brokerage platforms. For those shareholders that want to make regular purchases of these strategies, the most cost-effective manner is to invest directly with the SMI Funds, rather than incurring transaction fees via the broker platforms. Call 877-SMI-FUND or click the “Open An Account” link at the top of the page to open or transfer an account directly with the SMI Funds.
Monthly Returns as of
SMI Multi-Strategy Fund (SMILX) | ||||||||
Total Returns thru | Avg. Annualized Returns | Total Return | ||||||
YTD | 1 mo. | 3 mo. | 12 mo. | 3 yr. | 5 yr. | Since Inception* |
Since Inception* |
|
SMILX | ||||||||
Mixed Benchmark1 | ||||||||
S&P 500 | ||||||||
Bloomberg US Aggregate Bond Index |
Quarterly Returns as of
SMI Multi-Strategy Fund (SMILX) | ||||||||
Total Returns thru | Avg. Annualized Returns | Total Return | ||||||
YTD | 1 mo. | 3 mo. | 12 mo. | 3 yr. | 5 yr. | Since Inception* |
Since Inception* |
|
SMILX | ||||||||
Mixed Benchmark1 | ||||||||
S&P 500 | ||||||||
Bloomberg US Aggregate Bond Index |
All performance figures are net of fees, and therefore the following fees have already been taken out:
Total/Gross Expense Ratio: 1.52% as of 2/28/2024 (includes expenses of underlying funds)
Adjusted Expense Ratio: 1.22% as of 2/28/2024 (excludes expenses of underlying funds)
1Mixed Benchmark consists of 60% S&P 500 and 40% Bloomberg U.S. Aggregate Bond Index performance.
*SMILX inception date was 4/29/2015
The performance data quoted represents past performance, and past performance is not a guarantee of future results. Investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance information quoted. To obtain performance information current to the most recent month-end, please call 1-877-SMI-FUND (877-764-3863). Performance is calculated after fees and includes the reinvestment of income dividends and capital gain distributions, if any. The performance shown does not reflect the deduction of taxes that a shareholder might pay on any of the Funds' distributions or the redemption of the Funds' shares.
The S&P 500 index is an unmanaged index commonly used to measure the performance of U.S. stocks. The Bloomberg U.S. Aggregate Bond Index is a broad-based benchmark that measures the investment grade, U.S. dollar-denominated, fixed-rate taxable bond market, including Treasuries, government-related and corporate securities, MBS (agency fixed-rate and hybrid ARM passthroughs), ABS, and CMBS. You cannot invest directly in an index.
2023 Capital Gain and Income Distributions | |||||
Record Date | 12/27/2023 | ||||
Ex-Dividend Date | 12/28/2023 | ||||
Pay Date | 12/29/2023 | ||||
SMILX Income Distribution | $0.0802 | ||||
SMILX Short Term Capital Gain | $0.0000 | ||||
SMILX Long Term Capital Gain | $0.0000 |
Data represents an estimate of what will be distributed at calendar year-end. Dates above represent the scheduled December ex-dividend and pay date for the funds. The distribution figures may differ from the actual amounts to be paid in December.
Distributions | |||||
Distribution Year | Ticker | Dividend Income | Short Term Cap Gain | Long Term Cap Gain | Ex-Div Date |
2022 Distributions | SMILX | $0.0328 | $0.0000 | $0.0000 | 12/30/22 |
2021 Distributions | SMILX | $0.2480 | $1.0140 | $0.7166 | 12/30/21 |
2020 Distributions | SMILX | $0.0369 | $0.0000 | $0.0000 | 12/31/20 |
2019 Distributions | SMILX | $0.0432 | $0.0000 | $0.0000 | 12/30/19 |
2018 Distributions | SMILX | $0.0650 | $0.0000 | $0.2390 | 12/31/18 |
2017 Distributions | SMILX | $0.1084 | $0.0000 | $0.0000 | 12/28/17 |
2016 Distributions | SMILX | $0.0255 | $0.0000 | $0.0000 | 12/29/16 |
2015 Distributions | SMILX | $0.0521 | $0.0000 | $0.0000 | 12/30/15 |
Explanation of mutual fund distributions
All mutual funds must periodically distribute any profits they’ve earned to investors. The law requires a fund to pass substantially all of the net gains from the sale of securities, as well as earned dividends and interest from securities, to its shareholders. These distributions cause a taxable event for investors holding their shares in a taxable account. Those investing through tax-deferred retirement accounts do not experience a taxable event as a result of a fund’s distributions.
When a fund makes a distribution, the amount is deducted from the fund's Net Asset Value (NAV), so its listed price falls by the amount of the distribution on the Ex-Dividend date. However, it's important to realize that an investor does not lose anything from the distribution. While the fund’s price is reduced as a result of the distribution, the shareholder receives an equal amount of either cash or additional shares (if the distribution is reinvested) when the distribution takes place (Pay Date).
The SMI Funds are "funds of funds" which makes their distributions more difficult to estimate than most funds. In addition to capital gains earned from the sale of its own underlying funds throughout the year, the SMI Funds have to distribute as income any Income or Short-Term Capital Gains received in distributions from the underlying funds held in the portfolios. Estimates have been obtained from most of the underlying funds held in the portfolios, but these estimates are subject to change. As a result, the estimated income distribution above is presented as a projected range.
The Sound Mind Investing Fund (SMIFX) follows an investing strategy called Upgrading. We continually monitor and rank thousands of mutual funds by type in order to determine which ones have been performing the best recently. We purchase those funds showing superior performance relative to their peer group, and hold them until they stop outperforming. When that occurs, they are sold and replaced with other funds showing stronger recent performance.
Upgrading is based on research indicating that, as economic conditions change, market leadership rotates among companies of different sizes, and among different investment approaches. While market conditions are constantly changing, fund managers rarely change their approach. Managers that excel under one set of market conditions often are only average (or worse) under a different set of conditions. Rather than buy a fund and hold it through both the periods that favor the manager's approach and the periods that don't, Upgrading attempts to seek out and buy those funds that are excelling right now.
We make no attempt to predict which funds will lead the market in the future. Instead, Upgrading helps us to gradually move into funds that reflect the market's continually evolving leadership. While most investment approaches focus on long-term performance as the key to determining which mutual funds will succeed in the future, we believe the opposite is true. Research has shown that funds exhibiting superior performance in recent months tend to continue to perform well in the following months. As a result, we focus only on returns over the past 12 months in determining which funds are the best candidates for ownership. This approach to selecting new funds, coupled with a strong discipline to replace lagging funds, is the key to the Upgrading strategy.
The Fund typically invests in underlying funds in the following categories: small- to mid-cap growth, small- to mid-cap value, large-cap growth, large-cap value, and international. These broad category definitions make a wide range of investment opportunities available to the Funds, while still maintaining some measure of diversification among underlying funds focused on various types of investments. It also provides a measure of asset class diversification, as the Fund owns a mixture of foreign and domestic investments at any given time, as well as a mixture of funds that invest in both larger and smaller stocks. In addition, the Fund benefits from diversification among various management styles (i.e., "growth," "value," and other management styles). As a fund-of-funds following this approach, the Sound Mind Investing Fund offers a convenient way to purchase multiple leading mutual funds from across the major stock asset classes through a single investment.
Note that the "2.0" update to the Upgrading strategy enables the managers to shift part of (up to all of) the Upgrading 2.0 portfolio to cash.
Monthly Returns as of
The Sound Mind Investing Fund (SMIFX) | |||||||
Total Returns thru | Average Annualized Returns | ||||||
YTD | 1 mo. | 3 mo. | 12 mo. | 3 yr. | 5 yr. | 10 yr. | |
SMIFX | |||||||
S&P 500 | |||||||
Mixed Benchmark1 |
Quarterly Returns as of
The Sound Mind Investing Fund (SMIFX) | |||||||
Total Returns thru | Average Annualized Returns | ||||||
YTD | 1 mo. | 3 mo. | 12 mo. | 3 yr. | 5 yr. | 10 yr. | |
SMIFX | |||||||
S&P 500 | |||||||
Mixed Benchmark1 |
All performance figures are net of fees, and therefore the following fees have already been taken out:
Total/Gross Expense Ratio: 1.48% as of 2/28/2024 (includes expenses of underlying funds)
Adjusted Expense Ratio: 1.21% as of 2/28/2024 (excludes expenses of underlying funds)
1Mixed Benchmark consists of 20% Russell 1000® Value Index, 20% Russell 1000® Growth Index, 20% Russell 2000® Value Index, 20% Russell 2000® Growth Index, and 20% MSCI EAFE Index performance.
The performance data quoted represents past performance, and past performance is not a guarantee of future results. Investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance information quoted. To obtain performance information current to the most recent month-end, please call 1-877-SMI-FUND (877-764-3863). Performance is calculated after fees and includes the reinvestment of income dividends and capital gain distributions, if any. The performance shown does not reflect the deduction of taxes that a shareholder might pay on any of the Funds' distributions or the redemption of the Funds' shares.
The S&P 500 index is an unmanaged index commonly used to measure the performance of U.S. stocks. The Russell 1000 Value Index, Russell 1000 Growth Index, Russell 2000 Value Index, Russell 2000 Growth Index are unmanaged indexes commonly used to measure the performance of U.S. stocks. The MSCI EAFE Index is an unmatched index commonly used to measure the performance of International stocks. You cannot invest directly in an index.
2023 Capital Gain and Income Distributions | |||||
Record Date | 12/27/2023 | ||||
Ex-Dividend Date | 12/28/2023 | ||||
Pay Date | 12/29/2023 | ||||
SMIFX Income Distribution | $0.1483 | ||||
SMIFX Short Term Capital Gain | $0.0000 | ||||
SMIFX Long Term Capital Gain | $0.0000 |
Data represents an estimate of what will be distributed at calendar year-end. Dates above represent the scheduled December ex-dividend and pay date for the funds. The distribution figures may differ from the actual amounts to be paid in December.
Distributions | |||||
Distribution Year | Ticker | Dividend Income | Short Term Cap Gain | Long Term Cap Gain | Ex-Div Date |
2022 Distributions | SMIFX | $0.0804 | $0.0000 | $0.0000 | 12/30/22 |
2021 Distributions | SMIFX | $0.4161 | $2.0917 | $1.7935 | 12/30/21 |
2020 Distributions | SMIFX | $0.0000 | $0.0000 | $0.0000 | 12/30/20 |
2019 Distributions | SMIFX | $0.0476 | $0.0000 | $0.0000 | 12/30/19 |
2018 Distributions | SMIFX | $0.0455 | $0.5166 | $1.6339 | 12/31/18 |
2017 Distributions | SMIFX | $0.0000 | $0.4830 | $0.6890 | 12/28/17 |
2016 Distributions | SMIFX | $0.0000 | $0.0000 | $0.0000 | 12/29/16 |
2015 Distributions | SMIFX | $0.0000 | $0.0000 | $1.5147 | 12/30/15 |
2014 Distributions | SMIFX | $0.0677 | $0.0000 | $2.1942 | 12/30/14 |
2013 Distributions | SMIFX | $0.0489 | $0.8290 | $0.6837 | 12/27/13 |
2012 Distributions | SMIFX | $0.0004 | $0.0000 | $0.4974 | 12/31/12 |
2011 Distributions | SMIFX | $0.0000 | $0.0000 | $0.0000 | 12/30/11 |
2010 Distributions | SMIFX | $0.0254 | $0.0000 | $0.0000 | 12/30/10 |
2009 Distributions | SMIFX | $0.0000 | $0.0000 | $0.0000 | 12/30/09 |
2008 Distributions | SMIFX | $0.0439 | $0.0000 | $0.0000 | 12/30/08 |
2007 Distributions | SMIFX | $0.2218 | $0.2735 | $0.6231 | 12/31/07 |
2006 Distributions | SMIFX | $0.089 | $0.0000 | $0.0000 | 12/29/06 |
Explanation of mutual fund distributions
All mutual funds must periodically distribute any profits they’ve earned to investors. The law requires a fund to pass substantially all of the net gains from the sale of securities, as well as earned dividends and interest from securities, to its shareholders. These distributions cause a taxable event for investors holding their shares in a taxable account. Those investing through tax-deferred retirement accounts do not experience a taxable event as a result of a fund’s distributions.
When a fund makes a distribution, the amount is deducted from the fund's Net Asset Value (NAV), so its listed price falls by the amount of the distribution on the Ex-Dividend date. However, it's important to realize that an investor does not lose anything from the distribution. While the fund’s price is reduced as a result of the distribution, the shareholder receives an equal amount of either cash or additional shares (if the distribution is reinvested) when the distribution takes place (Pay Date).
The SMI Funds are "funds of funds" which makes their distributions more difficult to estimate than most funds. In addition to capital gains earned from the sale of its own underlying funds throughout the year, the SMI Funds have to distribute as income any Income or Short-Term Capital Gains received in distributions from the underlying funds held in the portfolios. Estimates have been obtained from most of the underlying funds held in the portfolios, but these estimates are subject to change. As a result, the estimated income distribution above is presented as a projected range.