Christopher Burton, CFA, FRM
Managing Director, Head of Commodities
Scott Ikuss
Senior Vice President, Portfolio Manager
Cantor Fitzgerald Commodity Return Strategy Fund
The Cantor Fitzgerald Commodity Return Strategy Fund seeks to deliver a total return that exceeds the performance of the benchmark through a diversified and actively managed portfolio of commodity-linked derivative instruments.
Overview - Share Class A
The fund is designed to achieve positive total return relative to the performance of the Bloomberg Commodity Index Total Return (the “BCOM Index”).
The fund invests in commodity-linked derivative instruments, such as commodity-linked notes, that provide exposure to the investment returns of the commodities markets without investing directly in physical commodities.
The fund also intends to gain exposure to commodities markets by investing in the Subsidiary, which in turn invests in commodity-linked swap agreements and other commodity-linked derivative instruments, and by investing directly in commodity-linked structured notes. These investments will be linked to the BCOM Index, other commodity indices or the value of a particular commodity or commodity futures contract or subset of commodities or commodity futures contracts.
Fund Managers
Fund Facts
Fund Info
| Advisor | O'Connor Alternative Investments, LLC |
| Custodian | State Street Bank & Trust Company |
| Inception Date | 12-30-2004 |
| Fund Domicile | United States |
| Fund Structure | Open Ended Investment Company |
| Fund Strategy | Commodities Broad Basket |
| Distributor | Ultimus Fund Distributors, LLC |
CRSAX | Share Class A
| Ticker | CRSAX |
| CUSIP | 22544R107 |
| Currency | USD |
| Gross Expense Ratio¹ | 1.10 % |
| Net Expense Ratio¹ | 1.05 % |
| Max Initial Sales Charge² | 4.75 % |
¹ Cantor Fitzgerald Commodity Strategy Funds (the “Trust”) and O’Connor Alternative Investments, LLC (“O’Connor”) have entered into a written contract limiting operating expenses to 1.05% of the fund’s average daily net assets for Class A shares, 1.80% of the fund’s average daily net assets for Class C shares and 0.80% of the fund’s average daily net assets for Class I shares at least through February 28, 2028. This limit excludes certain expenses, including interest charges on fund borrowings, taxes, brokerage commissions, dealer spreads and other transaction charges, expenditures that are capitalized in accordance with generally accepted accounting principles, acquired fund fees and expenses, short sale dividends, and extraordinary expenses (e.g., litigation and indemnification and any other costs and expenses that may be approved by the Board of Trustees). The Trust is authorized to reimburse O’Connor for management fees previously limited and/or for expenses previously paid by O’Connor, provided, however, that any reimbursements must be paid at a date not more than thirty-six months following the applicable month during which such fees were limited or expenses were reimbursed by O’Connor and the reimbursements do not cause the Fund to exceed the applicable expense limitation in the contract at the time the fees are recouped. This contract may not be terminated before February 28, 2028.
² The current maximum initial sales charge for Class A shares is 4.75%. The initial sales charge is reduced for larger purchases. Purchases over $1,000,000 or more are not subject to an initial sales charge but may be subject to a 0.50% CDSC on redemptions made within 12 months of purchase. The current maximum CDSC for Class C shares is 1.00% during the first year.
Documents
Legal Documents
*N-CSR items include the following disclosures:
- Item 7 – Financial Statements and Financial Highlights for Open-End Management Investment Companies.
- Item 8 – Changes in and Disagreements with Accountants for Open-End Management Investment Companies.
- Item 9 – Proxy Disclosures for Open-End Management Investment Companies
- Item 10 – Remuneration Paid to Board members, officers and others.
- Item 11 – Statement Regarding Basis for Approval of Investment Advisory Contract.
Common Fund Documents
Mutual funds are sold by summary prospectus or prospectus, which include more complete information on risks, charges, expenses and other matters of interest. Investors should read the summary prospectus and prospectus carefully before investing.
Risks
Exposure to commodity markets should only form a small part of a diversified portfolio. Investment in commodity markets may not be suitable for all investors. The fund's investment in commodity-linked derivative instruments may subject the fund to greater volatility than investment in traditional securities.
Investors in the Fund should be willing to assume the greater risks of potentially significant short-term share price fluctuations.
Use of leveraged commodity-linked derivatives creates an opportunity for increased return but, at the same time, creates the possibility for greater loss (including the likelihood of greater volatility of the Fund’s net asset value), and there can be no assurance that the Fund’s use of leverage will be successful.
The Fund is not a complete investment program and should only form a small part of a diversified portfolio. At any time, the risk of loss associated with a particular instrument in the Fund’s portfolio may be significantly higher than 50% of the value of the investment. Investors in the Fund should be willing to assume the greater risks of potentially significant short-term share price fluctuations.
Investments in the Fund are not bank deposits and are not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency.
The Fund’s and the Subsidiary’s investments in commodity-linked derivative instruments may subject the Fund to greater volatility than investments in traditional securities, particularly if the instruments involve leverage. The value of commodity-linked derivative instruments may be affected by changes in overall market movements, commodity index volatility, changes in interest rates, or factors affecting a particular industry or commodity, such as drought, floods, weather, livestock disease, embargoes, tariffs and international economic, political and regulatory developments.
Focus Risk: The Fund will be exposed to the performance of commodities in the BCOM Index, which may from time to time have a small number of commodity sectors (e.g., energy, metals or agricultural) representing a large portion of the index. As a result, the Fund may be subject to greater volatility than if the index were more broadly diversified among commodity sectors. If the Fund is exposed to a significant extent to a particular commodity or subset of commodities, the Fund will be more exposed to the specific risks relating to such commodity or commodities and will be subject to greater volatility than if it were more broadly diversified among commodity sectors.
Derivatives Risk: Derivatives are financial contracts whose value depends on, or is derived from, the value of an underlying asset, reference rate or index. The Fund typically uses derivatives as a substitute for taking a position in the underlying asset and/or as part of a strategy designed to reduce exposure to other risks, such as interest rate risk. The Fund also may use derivatives for leverage. The Fund’s use of derivative instruments, particularly commodity-linked derivatives, involves risks different from, or possibly greater than, the risks associated with investing directly in securities and other traditional investments. Derivatives are subject to a number of risks described elsewhere in this Prospectus, such as commodity exposure risks, correlation risk, credit risk, illiquidity risk, interest rate risk, leveraging risk and market risk. Also, suitable derivative transactions may not be available in all circumstances and there can be no assurance that the Fund will engage in these transactions to reduce exposure to other risks when that would be beneficial.
Futures Contracts Risk: The risks associated with the Fund’s use of futures contracts and swaps and structured notes that reference the price of futures contracts include the risk that: (i) changes in the price of a futures contract may not always track the changes in market value of the underlying reference asset; (ii) trading restrictions or limitations may be imposed by an exchange, and government regulations may restrict trading in futures contracts; and (iii) if the Fund has insufficient cash to meet margin requirements, the Fund may need to sell other investments, including at disadvantageous times.
The fund offers investors easy access to the broad commodity markets, currently by investing in a combination of commodity-linked structured notes and swaps. The fund has obtained a private letter ruling from the IRS confirming that the income produced by certain types of structured notes constitutes "qualifying income" under the IRS Code of 1986, as amended.
Important Information
Investors should consider the investment objectives, risks, and charges and expenses of the fund before investing. The prospectus contains this and other information about the fund and should be read carefully before investing. The prospectus may be obtained by calling (855) 9-CANTOR / (855) 922-6867.
The Fund is distributed by Ultimus Fund Distributors, LLC Member FINRA/SIPC. Ultimus Fund Distributors, LLC and Cantor Fitzgerald are not affiliated.
Not a Deposit | May Lose Value | No Bank Guarantee
Not Insured by the FDIC, NCUA or any Other Government Agency.