10/31/2024 | Press release | Distributed by Public on 10/31/2024 08:20
MAI Managed Volatility Fund
Annual Shareholder Report - August 31, 2024
MAIPX
: Institutional Class
This annual shareholder report contains important information about the MAI Managed Volatility Fund for the period of September 1, 2023, to August 31, 2024. You can find additional information about the Fund at http://www.maifunds.com/. You can also request this information by contacting us at (877) 414-7884.
(based on a hypothetical $10,000 investment)
Class Name
|
Costs of a $10,000 investment
|
Costs paid as a percentage of a $10,000 investment
|
Institutional Class
|
$104
|
0.99%
|
Over the year ending August 31, 2024, the Fund's Institutional Class (MAIPX) returned 9.66% Over the same period, the S&P 500® Index returned 27.14%.
The Fund's targeted exposure of 45-55% to a diversified equity portfolio helped the Fund advance but could not keep pace with a market driven by the sharp rise of a few companies. Markets priced risk significantly below the long-term average levels for most of the year, leading the Fund to be cautious with its option writing activities.
In August, markets marked one of the largest volatility shifts in the history of the CBOE Volatility Index ("VIX")1.Extreme positioning in several assets classes resulted in a sudden and extreme move in S&P implied volatility. The volatility environment went from complacency to extreme fear. The VIX spiked to 65 from 16 in only three trading days.
The Fund's limited equity exposure coupled with its risk managed approach to option writing limited its participation in the market's three sharp pullbacks and rallies. The Fund advanced with less volatility and successfully navigated the August volatility spike. Net returns were above the Fund's historical average. We believe the Fund's ability to generate returns through non-directional investments (Interest, Dividends, Option Writing) aids in its ability to generate returns commensurate with investor expectations.
1CBOE Volatility Index (VIX Index)The VIX Index is a calculation designed to produce a measure of constant,30-day expected volatility of the U.S. stock market,derived from real-time, mid-quote prices of S&P 500 Index (SPX℠) call and put options.
Date
|
Institutional Class
|
S&P 500® Index
|
08/31/14
|
$50,000
|
$50,000
|
11/30/14
|
$49,832
|
$51,861
|
02/28/15
|
$50,568
|
$53,061
|
05/31/15
|
$51,048
|
$53,401
|
08/31/15
|
$49,001
|
$50,239
|
11/30/15
|
$50,220
|
$53,287
|
02/29/16
|
$48,735
|
$49,777
|
05/31/16
|
$50,590
|
$54,318
|
08/31/16
|
$51,771
|
$56,545
|
11/30/16
|
$51,900
|
$57,581
|
02/28/17
|
$53,594
|
$62,208
|
05/31/17
|
$54,119
|
$63,806
|
08/31/17
|
$54,980
|
$65,725
|
11/30/17
|
$56,670
|
$70,752
|
02/28/18
|
$56,849
|
$72,846
|
05/31/18
|
$57,614
|
$72,984
|
08/31/18
|
$59,940
|
$78,648
|
11/30/18
|
$59,290
|
$75,191
|
02/28/19
|
$59,216
|
$76,255
|
05/31/19
|
$59,596
|
$75,745
|
08/31/19
|
$61,935
|
$80,945
|
11/30/19
|
$63,972
|
$87,304
|
02/29/20
|
$60,594
|
$82,503
|
05/31/20
|
$60,839
|
$85,468
|
08/31/20
|
$63,434
|
$98,702
|
11/30/20
|
$66,351
|
$102,544
|
02/28/21
|
$67,795
|
$108,318
|
05/31/21
|
$71,177
|
$119,928
|
08/31/21
|
$73,026
|
$129,463
|
11/30/21
|
$74,294
|
$131,175
|
02/28/22
|
$73,819
|
$126,071
|
05/31/22
|
$72,656
|
$119,569
|
08/31/22
|
$71,936
|
$114,928
|
11/30/22
|
$74,067
|
$119,094
|
02/28/23
|
$73,968
|
$116,374
|
05/31/23
|
$76,372
|
$123,062
|
08/31/23
|
$77,895
|
$133,252
|
11/30/23
|
$79,860
|
$135,576
|
02/29/24
|
$81,911
|
$151,813
|
05/31/24
|
$83,152
|
$157,749
|
08/31/24
|
$85,422
|
$169,411
|
The above chart represents historical performance of a hypothetical $50,000 investment over the past 10 years.
One Year
|
Five Year
|
Ten Year
|
|
Institutional Class
|
9.66%
|
6.64%
|
5.50%
|
S&P 500®Index
|
27.14%
|
15.92%
|
12.98%
|
The Fund's past performance is not a good predictor of how the Fund will perform in the future.The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares.
Total Net Assets
|
$244,962,792
|
# of Portfolio Holdings
|
84
|
Portfolio Turnover Rate
|
6%
|
Investment Advisory Fees (Net of fees waived)
|
$1,676,896
|
Value
|
Value
|
Information Technology
|
32.0%
|
Financials
|
15.0%
|
Health Care
|
12.9%
|
Communication Services
|
10.5%
|
Consumer Discretionary
|
8.1%
|
Consumer Staples
|
6.6%
|
Industrials
|
6.2%
|
Energy
|
4.1%
|
Utilities
|
2.6%
|
Real Estate
|
1.5%
|
Materials
|
0.5%
|
* excluding fixed income securities and cash equivalents
Apple, Inc.
|
8.05%
|
Microsoft Corp.
|
7.08%
|
Alphabet, Inc., Class A
|
4.03%
|
Amazon.com, Inc.
|
3.43%
|
UnitedHealth Group, Inc.
|
3.40%
|
Visa, Inc., Class A
|
3.39%
|
Broadcom, Inc.
|
3.34%
|
Meta Platforms, Inc., Class A
|
3.27%
|
The Home Depot, Inc.
|
3.17%
|
Oracle Corp.
|
2.98%
|
* excluding fixed income securities and cash equivalents
Common Stock
|
48.3%
|
U.S. Government & Agency Obligations
|
27.6%
|
Warrants
|
0.0%
|
Money Market Fund
|
25.9%
|
Written Options
|
(1.8)%
|
* excluding other assets and liabilities
The Fund is distributed by Foreside Fund Services, LLC, a wholly owned subsidiary of Foreside Financial Group, LLC (dba ACA Group). If you wish to view additional information about the Fund; including but not limited to its prospectus, holdings, financial information, and proxy information, please visit http://www.maifunds.com/.
MAI Managed Volatility Fund
Institutional Class
Annual Shareholder Report - August 31, 2024
244A-MAIPX-24
MAI Managed Volatility Fund
Annual Shareholder Report - August 31, 2024
DIVPX
: Investor Class
This annual shareholder report contains important information about the MAI Managed Volatility Fund for the period of September 1, 2023, to August 31, 2024. You can find additional information about the Fund at http://www.maifunds.com/. You can also request this information by contacting us at (877) 414-7884.
(based on a hypothetical $10,000 investment)
Class Name
|
Costs of a $10,000 investment
|
Costs paid as a percentage of a $10,000 investment
|
Investor Class
|
$130
|
1.24%
|
Over the year ending August 31, 2024, the Fund's Investor Class (DIVPX) returned 9.40%. Over the same period, the S&P 500® Index returned 27.14%.
The Fund's targeted exposure of 45-55% to a diversified equity portfolio helped the Fund advance but could not keep pace with a market driven by the sharp rise of a few companies. Markets priced risk significantly below the long-term average levels for most of the year, leading the Fund to be cautious with its option writing activities.
In August, markets marked one of the largest volatility shifts in the history of the CBOE Volatility Index ("VIX")1. Extreme positioning in several assets classes resulted in a sudden and extreme move in S&P implied volatility. The volatility environment went from complacency to extreme fear. The VIX spiked to 65 from 16 in only three trading days.
The Fund's limited equity exposure coupled with its risk managed approach to option writing limited its participation in the market's three sharp pullbacks and rallies. The Fund advanced with less volatility and successfully navigated the August volatility spike. Net returns were above the Fund's historical average. We believe the Fund's ability to generate returns through non-directional investments (Interest, Dividends, Option Writing) aids in its ability to generate returns commensurate with investor expectations.
1CBOE Volatility Index (VIX Index)The VIX Index is a calculation designed to produce a measure of constant,30-day expected volatility of the U.S. stock market,derived from real-time, mid-quote prices of S&P 500 Index (SPX℠) call and put options.
Date
|
Investor Class
|
S&P 500® Index
|
08/31/14
|
$10,000
|
$10,000
|
11/30/14
|
$9,957
|
$10,372
|
02/28/15
|
$10,097
|
$10,612
|
05/31/15
|
$10,189
|
$10,680
|
08/31/15
|
$9,767
|
$10,048
|
11/30/15
|
$10,006
|
$10,657
|
02/29/16
|
$9,705
|
$9,955
|
05/31/16
|
$10,070
|
$10,864
|
08/31/16
|
$10,300
|
$11,309
|
11/30/16
|
$10,320
|
$11,516
|
02/28/17
|
$10,647
|
$12,442
|
05/31/17
|
$10,753
|
$12,761
|
08/31/17
|
$10,907
|
$13,145
|
11/30/17
|
$11,245
|
$14,150
|
02/28/18
|
$11,270
|
$14,569
|
05/31/18
|
$11,408
|
$14,597
|
08/31/18
|
$11,858
|
$15,730
|
11/30/18
|
$11,731
|
$15,038
|
02/28/19
|
$11,702
|
$15,251
|
05/31/19
|
$11,766
|
$15,149
|
08/31/19
|
$12,222
|
$16,189
|
11/30/19
|
$12,619
|
$17,461
|
02/29/20
|
$11,941
|
$16,501
|
05/31/20
|
$11,992
|
$17,094
|
08/31/20
|
$12,494
|
$19,740
|
11/30/20
|
$13,056
|
$20,509
|
02/28/21
|
$13,327
|
$21,664
|
05/31/21
|
$13,990
|
$23,986
|
08/31/21
|
$14,342
|
$25,893
|
11/30/21
|
$14,583
|
$26,235
|
02/28/22
|
$14,482
|
$25,214
|
05/31/22
|
$14,241
|
$23,914
|
08/31/22
|
$14,091
|
$22,986
|
11/30/22
|
$14,502
|
$23,819
|
02/28/23
|
$14,479
|
$23,275
|
05/31/23
|
$14,932
|
$24,612
|
08/31/23
|
$15,222
|
$26,650
|
11/30/23
|
$15,588
|
$27,115
|
02/29/24
|
$15,989
|
$30,363
|
05/31/24
|
$16,218
|
$31,550
|
08/31/24
|
$16,652
|
$33,882
|
The above chart represents historical performance of a hypothetical $10,000 investment over the past 10 years.
One Year
|
Five Year
|
Ten Year
|
|
Investor Class
|
9.40%
|
6.38%
|
5.23%
|
S&P 500®Index
|
27.14%
|
15.92%
|
12.98%
|
The Fund's past performance is not a good predictor of how the Fund will perform in the future.The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares.
Total Net Assets
|
$244,962,792
|
# of Portfolio Holdings
|
84
|
Portfolio Turnover Rate
|
6%
|
Investment Advisory Fees (Net of fees waived)
|
$1,676,896
|
Value
|
Value
|
Information Technology
|
32.0%
|
Financials
|
15.0%
|
Health Care
|
12.9%
|
Communication Services
|
10.5%
|
Consumer Discretionary
|
8.1%
|
Consumer Staples
|
6.6%
|
Industrials
|
6.2%
|
Energy
|
4.1%
|
Utilities
|
2.6%
|
Real Estate
|
1.5%
|
Materials
|
0.5%
|
* excluding fixed income securities and cash equivalents
Apple, Inc.
|
8.05%
|
Microsoft Corp.
|
7.08%
|
Alphabet, Inc., Class A
|
4.03%
|
Amazon.com, Inc.
|
3.43%
|
UnitedHealth Group, Inc.
|
3.40%
|
Visa, Inc., Class A
|
3.39%
|
Broadcom, Inc.
|
3.34%
|
Meta Platforms, Inc., Class A
|
3.27%
|
The Home Depot, Inc.
|
3.17%
|
Oracle Corp.
|
2.98%
|
* excluding fixed income securities and cash equivalents
Common Stock
|
48.3%
|
U.S. Government & Agency Obligations
|
27.6%
|
Warrants
|
0.0%
|
Money Market Fund
|
25.9%
|
Written Options
|
(1.8)%
|
* excluding other assets and liabilities
The Fund is distributed by Foreside Fund Services, LLC, a wholly owned subsidiary of Foreside Financial Group, LLC (dba ACA Group). If you wish to view additional information about the Fund; including but not limited to its prospectus, holdings, financial information, and proxy information, please visit http://www.maifunds.com/.
MAI Managed Volatility Fund
Investor Class
Annual Shareholder Report - August 31, 2024
244A-DIVPX-24
By:
|
Zachary Tackett
|
|
Zachary Tackett, Principal Executive Officer
|
||
Date:
|
October 28, 2024
|
By:
|
Zachary Tackett
|
|
Zachary Tackett, Principal Executive Officer
|
||
Date:
|
October 28, 2024
|
By:
|
Karen Shaw
|
|
Karen Shaw, Principal Financial Officer
|
||
Date:
|
October 28, 2024
|