Preserver Partners, LLC is an SEC-registered alternative investment management firm which manages investment funds for public and corporate pension funds, institutions, foundations, and individual investors. The firm was founded in 2009 and is based in Memphis, TN. The firm manages an opportunistic income fund, Preserver, L.P., for accredited investors and a liquid alternative mutual fund, the Preserver Alternative Opportunities Fund, for individual and institutional investors.
Investment Approach
The Preserver Alternative Opportunities Fund, trades under tickers PAOIX and PAORX, seeks attractive risk-adjusted returns by investing across asset classes and strategies with the transparency and daily liquidity of a mutual fund. The principal investment strategies are event-driven, long only global equities, fixed income, structured credit and tactical trading. The Fund employs a differentiated investment approach targeting long-biased and low volatility portfolios with a focus on income generation.
The value of the fund’s shares, when redeemed, may be worth more or less than their original cost.All investments involve risks, including loss of principal.There is no guarantee that any investment strategy will be successful or achieve any particular results.
Debt obligations issued by corporations to fund capital improvements, expansions, debt refinancing, or acquisitions.
Real Estate
Real estate investment trusts or direct property funds that generate returns through rental income and market value appreciation.
Private Funds
A pooled investment vehicle targeted to accredited investors only and typically investing in illiquid investments.
Common & Preferred Stocks
Common stock represents fractional ownership in a listed corporation and represents a claim on part of the corporation’s assets and earnings and dividends. Preferred stock is a hybrid security that has a claim on assets and earnings that is senior to common stock but ranks below the claim of debt holders.
Mortgage Bonds
A bond secured by a mortgage or pool of mortgages.
Closed-End Funds
A pooled investment fund that issues a fixed number of shares which are not redeemable from the fund. Unlike a mutual fund, new shares in a closed-end fund are not created by managers to meet demand from investors. Instead, new shares can be purchased and sold only in the market.
Treasury Bonds
Debt obligations issued by the United States government to fund its spending activities.
Disclosure: CORPORATE & CONVERTIBLE BONDS Bonds are affected by a number of risks, including fluctuation in interest rates, credit risks, and prepayment risk. In general, as prevailing interest rates rise, fixed income securities prices will fall. REAL ESTATE Real Estate Investment Trusts (REITs) are subject to the risks generally associated with real estate investments. REITS may be more volatile and less liquid than other exchange-traded securities. PRIVATE FUNDS The Fund, as an investor in a Private Fund, will not have the benefit of protections afforded by the 1940 Act to investors in registered investment companies. Private Funds are subject to control risk, investment risk, liquidity risk, transparency risk, and valuation risk. COMMON & PREFERRED STOCKS The value of equity securities is influenced by a number of factors which may related directly to the issuer of the equity securities or broader economic or market events, including changes in interest rates. MORTGAGE BONDS The value of some mortgage-backed securities may be particularly sensitive to changes in prevailing interest rates, and although the securities are generally supported by some form of government or private insurance, there is no assurance that private guarantors or insurers will meet their obligation. CLOSED-END FUNDS The value of closed-end funds, like other market investments, may move up or down, sometimes rapidly and unpredictably. At any point in time an investment may be worth less than the original investment, even after considering the reinvestment of fund dividends and distributions. TREASURY BONDS Treasury Bonds are considered to have very low credit risk, however, they are affected by other types of risk, mainly interest-rate risk and inflation risk. If interest rates fall, the value of the older, higher-paying bond will rise in comparison with new issues.
Investors should carefully consider the Fund’s investment objectives, risks, charges and expenses before investing. This and other important information is contained in the Fund’s prospectus, which should be read carefully before investing. To obtain a fund prospectus, call 1-844-838-2119. The Fund is distributed by Unified Financial Securities, LLC.
Midstream MLPs are primarily involved in the gathering, storage and transportation of oils and gases.
MLPs are subject to many risks, including those that differ from the risks involved in an investment in the common stock of a corporation. Holders of MLP interests have limited control and voting rights on matters affecting the partnership and are exposed, under certain circumstances, to a possibility of liability for all of the obligations of that MLP. Holders of MLP interests are also exposed to the risk that they will be required to repay amounts to the MLP that are wrongfully distributed to them. In addition, the value of an investor’s investment in an MLP will depend in part on the MLP’s treatment as a partnership for U.S. federal income tax purposes. MLP interests may not be as liquid as other more commonly traded equity securities and have relatively high distribution rates compared to corporate securities. The characterization of these distributions as either long-term capital gains or as some other type of return may not be ascertainable until the end of a taxable year and may complicate the calculation of the Fund’s and its shareholders’ taxes.
Investors should carefully consider a fund’s investment objectives, risks, charges and expenses before investing. This and other important information is contained in the fund’s prospectus, which should be read carefully before investing. To obtain a fund prospectus, call 1-844-838-2119. The fund is distributed by Unified Financial Securities, LLC.
Past performance is not a guarantee of future results. There is no guarantee that this, or any, investing strategy will be successful.
Risks:
Investing involves risk, including loss of principal. Investments in international markets present special risks, including currency fluctuation, the potential for diplomatic and political instability, regulatory and liquidity risks, foreign taxation and difference in auditing and other financial standards. Fixed income investments are affected by a number of risks, including fluctuation in interest rates, credit risks, and prepayment risk. In general, as prevailing interest rates rise, fixed income securities prices will fall. The value of some mortgage-backed securities may be particularly sensitive to changes in prevailing interest rates.
Holdings:
As of 4/30/17, UBS Trumbull Property Income Fund was 1.84% of the fund’s portfolio; Vinacapital Vietnam Opportunity Fund was .46%; Sydney Airport was .47%; Fortress Transportation was .74%; and Stone Ridge Reinsurance Risk Premium was 2.66%
Terms:
Alternative assets - any non-traditional asset with potential economic value that would not be found in a traditional investment portfolio. Due to the unconventional nature of alternative assets, valuation of some of these assets can be difficult.
Participating mortgages - a type of mortgage that allows the lender to share in part of the income or resale proceeds. The lender participates in the income of the mortgaged property beyond a fixed return, or receives a yield on the loan in addition to the straight interest rate.
Closed-end Fund - a collective investment vehicle based on issuing a fixed number of shares, which are not redeemable from the fund. Unlike open-end funds, new shares in a closed-end fund are not created by managers to meet demand from investors.
Insurance-linked securities - financial instruments sold to investors whose value is affected by an insured loss event.
The views and opinions in this material are those of the participants. There is no guarantee that any opinions in this material will be realized. Information should not be construed as investment advice nor be considered a recommendation to buy, sell, or hold any particular security.
Disclosures: Investors should carefully consider a fund's investment objectives, risks, charges and expenses before investing. This and other important information is contained in the fund's prospectus, which should be read carefully before investing. To obtain a fund prospectus, call 1-844-838-2119. The fund is distributed by Unified Financial Securities, LLC.
The views and opinions in this material are those of the participants. There is no guarantee that any opinions in this material will be realized. Information should not be construed as investment advice nor be considered a recommendation to buy, sell, or hold any particular security.
Investing involves risk, including loss of principal. Investments in real estate investment trusts (“REITS”) involve special risks associated with an investment in real estate, such as limited liquidity and interest rate risk, and may be more volatile than other securities. Smaller companies involve greater risk of loss and price fluctuation than larger companies.
The fund limits its investment in illiquid securities to 15% of the fund’s net assets. The fund intends to treat CLOs, loan participations and Private Funds in which it invests as illiquid for purposes of the Fund’s limitation on illiquid investments. The fund, as an investor in a private fund, will not have the benefit of protections afforded by the 1940 Act to investors in registered investment companies. The adviser does not have control of the trading policies or strategies of a private fund. Private funds typically provide limited portfolio information.
As of 10/31/16, the fund’s holdings were: 1.01% in MNR. The mutual fund does not invest in music or photo royalties. As of 9/30/16, PAOIX returns were 3.07% for 3Q16 and 7.20% since inception on March 1, 2016. The fund’s 30 day SEC advertised yield as of 9/30/16 was 1.94%. The gross expense ratio for PAOIX is 2.34%.
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 redeemed, may be worth more or less than their original cost. Current performance of the fund may be lower or higher than the performance quoted. Performance data current to the most recent month end can be obtained by calling 1-844-838-2119.
