Overlay Shares Hedged Equity Fund (OVHEX)
U.S. large-cap equity exposure paired with a structured options overlay designed to help mitigate the impact of market declines.
Overview
The Overlay Shares Hedged Equity Fund seeks capital appreciation by combining U.S. large-cap equity exposure with a systematic put option strategy designed to help mitigate the impact of significant market declines. Available via advisor-supported self-directed brokerage accounts (SBDAs).1
1Performance data quoted represents past performance and is no 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 data quoted. For the most recent month-end performance, please click here.
Fund Information
| Ticker Symbol | OVHEX |
|---|---|
| CUSIP | 53656H637 |
| Fund Structure | Mutual Fund |
| Inception Date | 07/13/2026 |
| Expense Ratio The adviser has contractually agreed to waive its management fee until July 9, 2027, unless sooner terminated. | 2.49% net / 3.55% gross |
| Minimum Investment Investment minimums are waived to fee-based advisors and certain other investors. | $1,000 initial / $100 subsequent |
| Distribution Frequency | Annually |
Fees & Expenses
| Management Fees | 1.49% |
|---|---|
| Administrative Servicing Fee Other Expenses have been restated to reflect current fees. | 0.75% |
| Other Expenses Acquired Fund Fees and Expenses are indirect costs of investing in other investment companies. The operating expenses in this fee table do not correlate to the expense ratio in the Fund’s financial highlights because the financial statements include only the direct operating expenses incurred by the Fund and not the indirect costs of investing in other investment companies. | 1.28% |
| Total Annual Fund Operating Expense after Fee Waiver The adviser has contractually agreed to waive its management fee until July 9, 2027, unless sooner terminated. | 2.49% |
1Availability through an SBDA depends on individual plan design and recordkeeper policies.
Fund Performance
Principal Risks
Derivative Risk: Derivatives may be more sensitive to changes in market conditions and may amplify risks.
Leverage Risk: Leverage may magnify the Fund’s gains or losses. Fluctuations in the market value of the Fund's portfolio will have disproportionately large effects on the Fund’s NAV.
New Fund Risk: The Fund is a recently organized investment company with no operating history. As a result, prospective investors have no track record or history on which to base their investment decision.
Options Risk: The Fund invests in options that derive their performance from the performance of the S&P 500 Index. Selling (writing) and buying options are speculative activities and entail greater than ordinary investment risks. The Fund's use of put options can lead to losses because of adverse movements in the price or value of the underlying asset, which may be magnified by certain features of the options. When selling a put option, the Fund will receive a premium; however, this premium may not be enough to offset a loss incurred by the Fund if the price of the underlying asset is below the strike price by an amount equal to or greater than the premium. Purchased put options may expire worthless and the Fund would lose the premium it paid for the option. The Fund may lose significantly more than the premiums it receives in highly volatile market conditions.
The Fund will invest in short term put options which are financial derivatives that give buyers the right, but not the obligation, to sell (put) an underlying asset at an agreed-upon price and date. The Fund's use of options may reduce the Fund's ability to profit from increases in the value of the underlying asset. The Fund could experience a loss or increased volatility if its derivatives do not perform as anticipated or are not correlated with the performance of their underlying asset or if the Fund is unable to purchase or liquidate a position.
Risk Factors
An investment in the Fund’s shares is subject to risks. The value of the Fund’s investments will increase or decrease based on changes in the prices of the investments it holds. This will cause the value of the Fund’s shares to increase or decrease. You could lose money by investing in the Fund. By itself, the Fund does not constitute a complete investment program. Before investing in the Fund, you should consider carefully the following risks the Fund faces, together with the other information contained in the prospectus.
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The Fund invests in equity securities, which are subject to market risk. Stock prices may fluctuate significantly due to market conditions, economic developments, or issuer-specific events.
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The Fund utilizes options as part of its investment strategy. The use of derivatives, including put options, may increase volatility and may not perform as intended.
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The Fund’s hedging strategy may not be effective in reducing losses during market declines, and the cost of such strategies may reduce overall returns.
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The Fund is non-diversified, which means it may invest a greater portion of its assets in a limited number of issuers and may be more susceptible to volatility.
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The Fund is newly organized and has no operating history by which to evaluate its performance.
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The Fund’s performance depends on the investment decisions of the Adviser, which may not produce the intended results.
Investors should consider the investment objectives, risks, charges, and expenses carefully before investing. The prospectus contains this and other important information about the investment company. For a prospectus or summary prospectus with this and other important information about the Fund, please call 1-800-632-4027 or visit the Documents section of this website. Read the prospectus carefully before investing. OVHEX and OVEEX are mutual funds distributed by Foreside Fund Services, LLC, which is not affiliated with the Adviser.