Balanced Fund
Fund A
*Fact sheet as of July 31st, 2016
Fund Objective: Income and growth of capital
Asset Class
Balanced
Investment Strategy: The investment strategy of the Balanced Fund is to achieve a maximum total return over the
long term, primarily through equity investments, but also with a measure of stability and safety introduced by a highquality fixed income portfolio segment. Equity investments normally represent 60 to 80% of the Balanced Fund’s portfolio
at any given time. It may invest in securities convertible into or exchangeable for common stock as well as in debt
securities and preferred stocks believed to provide capital appreciation opportunities. Category
Moderate Allocation
Fund Information
Inception Date
3/31/1993
Assets
$12 Million
Number of Holdings
75
Distribution Frequency
Daily
NAV Frequency
Daily
Expense Ratio
2.25
Load Structure
No Load
Management
Company
Bramshill
Investments LLC.
Administrator
Altree Fund
Services
Auditor
PWC
Legal Advisors
Appleby Ltd.
Performance Annualized: (%)
YTD
1 Year
3 Year
5 Year
10 Year
Balanced Fund
5.08
4.74
6.28
6.60
4.44
Benchmark
(70% S&P 500 /30% Barclays Agg)
7.25
5.93
9.17
10.52
7.20
*Note that the YTD return is not an annualized number it is the total return year to date for the fund.
Annual Returns (%) - Net of fees
(Trailing
15 yrs)
Portfolio Management Team
Art DeGaetano
22 years
Derek Pines
16 years
Justin Byrnes
18 years
Malcolm Selver
48 years
Jeffrey Leschen
10 years
Contact
Carla Seely
Freisenbruch-Meyer Insurance Services Ltd.
75 Front Street
Hamilton, HM CX Bermuda
Phone: 441.297.8686
[email protected]
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2014
2015
7.54% 21.67% 5.42%
2012
2013
1.06%
Balanced Fund -9.76% 14.79% -16.42% 16.83% 9.16%
8.36% 10.23% 0.79% -34.44% 34.27% 13.97% -3.05%
Benchmark
4.11% 12.22% 5.98% -24.02% 19.92% 12.33% 3.82% 12.38% 21.82% 11.25% 1.13%
-2.83% -5.77% -12.30% 21.07% 8.82%
Annual Growth of $10,000
$24,000
$22,000
Benchmark
$20,000
Balanced Fund
$18,000
$16,000
$14,000
$12,000
Balanced Fund, $18,023
$10,000
$8,000
INVESTMENT PROCESS
The portfolio managers combine fundamental and quantitative analysis to identify companies with strong earnings, growth potential and a compelling risk/reward profile.
Assessing
Relative Value of Asset Classes
•
•
•
•
Combine top down forecasting of key macroeconomic variables with a bottoms up analysis of
individual securities
Rotate the portfolio among various asset classes
based on undervalued and overvalued metrics
Capitalize on opportunities in the market where
securities and sectors are mispriced
Evaluate across equity and fixed income markets
seeking the most attractive risk/reward investments
Portfolio & Risk Management
Sector & Individual Security Selection
•
•
•
•
•
Overweight/underweight sector allocations vs.
benchmark on macroeconomic views
Assess securities using fundamental credit analysis, stress test/recovery analysis
Performance scenario analysis and beta testing
Pursue investments that are secured by assets or
have strong cash flows tied to revenue streams
Analyze price and risk of a security vs. similar
securities within a sector
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•
•
•
•
•
Manage and monitor the portfolio real time
Adhere to position limits, sector exposures, and
stop losses
Team oriented process governing investment
analysis, operations, and execution
Utilize deep relationships and access to industry
wide research to be accretive to our internal
process
Portfolio modeling including liquidity, tail risk and
hedging
Balanced Fund
Fund A
Top 10 Equity Holdings (%)
Fund
Consumer Staples Spdr
5.34
Health Care Select Sector
5.13
Master Income ETF
3.07
Fixed Income - 20%
IShares Nasdaq Biotechnology
2.91
Cash - 18%
Berkshire Hathaway Inc
2.88
Ralph Lauren Corp
2.53
Pfizer Inc
2.45
Asset Class Allocation (As of 7/31/2016)
U.S. Equities - 62%
International Equities - 0%
Sector Allocation (%)
Fund
Equity
62.28
Bristol-Myers Squibb Co
2.10
Consumer Discretionary
11.65
Michael Kors Holdings Ltd
2.02
Financials
12.81
Nordstrom Inc
1.93
Health Care
15.08
Industrials
3.99
Information Technology
7.25
Top 10 Fixed Income Holdings
Fund
IShares Short Maturity Bond
5.02
2.95
Consumer Staples
5.34
T 0 3/4 06/30/17
Utilities
0.68
Ishares 1-3 year Treasury Bond
1.69
Materials
1.72
Ishares US Preferred Stock
1.48
Energy
0.68
WFC 8 12/31/49
1.32
Other
3.07
GM 3.7 05/09/23
1.32
Fixed Income
20.04
LEN 4 3/4 04/01/21
1.28
Corporate Bonds
11.14
Invesco Senior Income Trust
1.24
Preferred Stocks
6.06
Nuveen Credit Strat Inc
1.23
Goverment Bonds
2.64
Proshares Ultrashort 20+yr Treasury
0.95
Municipal Bonds
0.19
Cash & Equivalent
17.68
Average Quality Rating of Fixed Income Holdings
Standard & Poors
Fund Statistics
Fund
Beta
0.85
-
Correlation
0.92
0.92
Benchmark
A-
Fitch
A
Moody’s
A2
IMPORTANT DISCLOSURES
The Front Street Funds Trust is authorized as a Collective Investment Scheme (CIS) by the Bermuda Monetary Authority.
Past performance is not an indication of future performance, performance data shown represents past performance only. The investment return and principal value
of an investment will fluctuate based upon market value, no investment returns are guaranteed.
The material contained in this document is for information purposes only. It is not intended as an offer or solicitation for purchase or sale of any security or financial
instrument, nor is it advice or a recommendation to enter into any transaction. The Front Street Funds Trust and its related entities do not warrant the accuracy of
the information provided herein, either expressed or implied, for any particular purpose.
Please refer to the prospectus and related documentation for further information regarding the investment offering.
Fund A - Balanced Fund performance data is shown as net of fees.
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Fixed Income Fund
Fund B
*Fact sheet as of July 31st, 2016
Fund Objective: Income and growth of capital
Asset Class
Fixed Income
Investment Strategy: The Fixed Income Fund employs the Bramshill Income Performance Strategy which is a multi-
Category
Conservative Allocation
Fund Information
asset class fixed income strategy that seeks to maximize total return across various asset classes. The strategy invests
in a tactical portfolio of income-producing securities, including investments grade and high yield bonds, preferreds,
municipal bonds, and U.S. Treasury securities. The portfolio is actively managed, incorporating sector allocations and
tactical hedging during various interest rate and market environments. The strategy uses fundamental credit and relative
value analysis, and focuses on securities with transparent pricing, actively-traded capital structures and liquidity. The
strategy is unlevered, highly liquid, not benchmark dependent and seeks to maintain an investment grade portfolio.
Inception Date
April 2016
Assets
4.5 Million
Number of Holdings
34
Distribution Frequency
Daily
NAV Frequency
Daily
Expense Ratio
1.50
$1.6
Load Structure
No Load
$1.4
Investment Manager
Bramshill
Investments, LLC
$1.2
Administrator
Altree Fund
Services
$0.8
Jan-09
Auditor
PWC
Bramshill Income Performance Strategy
PIMCO Total Return Bond Fund (PTTRX)
Legal Advisors
Appleby Ltd.
Barclays Capital U.S. Aggregate Bond Index
JP Morgan Strategic Income Fund (JSOSX)
Millions
Bramshill Income Performance Strategy vs Benchmarks
$2.0
$1.8
$1.0
Jan-10
Jan-11
Jan-12
Jan-13
Jan-14
Jan-15
Jan-16
Annualized Performance: (%)
Portfolio Management Team
Art DeGaetano
22 years
Derek Pines
16 years
Justin Byrnes
18 years
Malcolm Selver
48 years
Jeffrey Leschen
10 years
Contact
Carla Seely
Freisenbruch-Meyer Insurance Services Ltd.
75 Front Street
Hamilton, HM CX Bermuda
Phone: 441.297.8686
[email protected]
YTD
1 Year
3 Year
5 Year*
Inception
(1/1/2009)
Income Performance Strategy
6.71
7.66
6.20
6.37
88.64
Barclays Capital U.S. Aggregate Bond
Index
5.98
5.95
4.24
3.57
40.36
PIMCO Total Return Bond Fund - Inst
5.02
4.17
3.69
3.67
54.71
JP Morgan Strategic Income Fund - Inst
6.01
3.03
1.63
2.65
44.96
*The BIP Strategy has been verified for compliance with GIPS beginning in May 2012. Pre-May 2012 data is considered supplemental information.
Yearly Performance: (%)
Income Performance Strategy
2009
2010
2011
2012*
2013
2014
2015
28.19
2.40
9.78
12.75
-2.35
8.53
2.65
*The BIP Strategy has been verified for compliance with GIPS beginning in May 2012.
INVESTMENT PROCESS
The investment process is based upon the following criteria:
Analyzing Portfolio’s Interest Rate
Sensitivity
Assessing
Relative Value of Asset Classes
•
•
•
•
Rotate the portfolio among various asset classes
based on undervalued and overvalued metrics
Capitalize on opportunities in the market where
securities and sectors are mispriced
Evaluate across taxable, tax-free, and equity
oriented income markets
Analyze price and risk of a security vs. similar
securities within a sector
•
•
•
•
Interpret Federal Reserve policy
Position the portfolio along the various points of
the yield curve
Analyze how interest rate moves will impact each
position in the portfolio
Use hedges and security structure allocations to
adjust portfolio positioning
Credit Selection
•
•
•
•
•
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Assess securities using fundamental credit analysis, stress test/recovery analysis
Performance target analysis
Pursue investments that are secured by assets or
have strong cash flows tied to revenue streams
Invest in securities priced with favorable risk/
reward on recovery
Establish positions in large liquid credits, avoiding
credit derivative and private placements
Front Street Funds Trust
Fixed Income Fund
Fund B
Fund B - Fixed Income Fund
Asset Class Allocation (As of 7/31/2016)
Asset Class Correlation
The correlation below compares the historical returns of the Bramshill Income Performance Strategy
to the returns of the major US asset classes. The Bramshill Income Performance Strategy has a
historically low correlation to all major asset class.
Corporate Bonds
High Yield
Bramshill
High Yield
Corporate
Preferred
Stock
S&P 500
IG Corporate
Municipal
Bond
US
Treasuries
Bramshill
1
0.46
0.33
0.57
0.48
0.65
0.02
High Yield
Corporate
0.46
1
0.71
0.65
0.57
0.15
-0.26
Preferred Stock
0.33
0.71
1
0.60
0.53
0.19
-0.04
S&P 500
0.57
0.65
0.60
1
0.57
0.25
-0.20
IG Corporate
0.48
0.57
0.53
0.57
1
0.50
0.43
Municipal Bond
0.65
0.15
0.19
0.25
0.50
1
0.49
US Treasuries
0.02
-0.26
-0.04
-0.20
0.43
0.49
1
Preferred Stock
Municipal Bonds
Government Bonds
Asset Class Allocation (%)
Corporate Bonds
32.5
Preferred Stocks
21.1
Municipal Bonds
0.8
Government Bonds
23.1
High Yield
12.2
Bramshill Income Performance Strategy vs US Treasury Returns
Fund Metrics
Cumulative Return
88.64
Annualized Volatility
5.75
Sharp Ratio
1.42
Duration
2.2
Book Yield
4.10%
The chart below shows the performance of the strategy in rising rate enviroments. The strategy’s
diversifications allows for positive growth in various interest rate enviroments.
200
180
160
Top 5 Holdings (%)
140
T 0 ¾ 06/30/17
9.78
IShares Short Maturity Bond
9.67
IShares 1-3 Year Treasury Bond
5.59
100
Nuveen Credit Strategy Income
5.05
80
IShares US Preferred Stock
4.89
*Asset allocation shown above represents actual holdings in Front Street Funds B
120
60
Bramshill Income Performance Strategy
ISHARES 20-30 Year Treasury Bond ETF (TLT)
Identifies Rising Rate Enviroment(s)
*As of 6/30/2016
IMPORTANT DISCLOSURES
The Front Street Funds Trust is authorized as a Collective Investment Scheme (CIS) by the Bermuda Monetary Authority.
Performance and metrics data shown above is reflective of actual returns achieved by the Bramshill Income Performance Strategy, a GIPS compliant separate account strategy managed by Bramshill Investments, LLC, for the time periods specified. All data shown above is as of the current dated fact sheet unless otherwise
noted. Historic performance data is net of management fees and transaction costs. The strategy was not offered in an investment company format, which carries
certain fees and expenses not otherwise attributable to separately managed accounts.
The material contained in this document is for information purposes only. It is not intended as an offer or solicitation for purchase or sale of any security or financial
instrument, nor is it advice or a recommendation to enter into any transaction. The Front Street Fund Trust and its related entities do not warrant the accuracy of
the information provided herein, either expressed or implied, for any particular purpose.
Please refer to the prospectus and related documentation for further information regarding the investment offering.
www.fmgroup.bm
Fixed Income Fund
Fund B
Front Street Funds Trust
Fund B - Fixed Income Fund
BRAMSHILL INCOME PERFORMANCE STRATEGY COMPOSITE DATA & GIPS® DISCLOSURES
Year
Gross Return
(%)
Net Return (%)
Benchmark
Return (%)
Composite
3-Yr St Dev
(%)
Benchmark
3-Yr St Dev
(%)
Number of
Portfolios
Internal Dispersion (%)
Composite
Assets ($M)
Firm Assets
($M)
***2012
7.82
7.55
2.70
****
****
5
*****
168.0
174
2013
-1.59
-2.32
-2.02
****
****
6
0.22
136.2
136.4
2014
9.37
8.53
5.95
****
****
11
0.54
94.8
119.6
2015
3.32
2.65
0.57
3.94
2.92
28
1.42
92.1
129.2
As of June 2016 Bramshill Investments LLC currently manages $326 million within the defined firm that claims compliance with the Global Investment Performance Standards (GIPS®).
The Asset Management Division of Bramshill Investments, LLC (the “Firm”) claims compliance with the Global Investment Performance Standards (GIPS®) and has prepared
and presented this report in compliance with the GIPS® standards. The Firm has been independently verified for the period May 2012 through December 2015. The verification report is available upon request. Verification assesses whether (i) the Firm has complied with all the composite construction requirements of the GIPS® standards on a
firm-wide basis and (ii) the Firm’s policies and procedures are designed to calculate and present performance in compliance with the GIPS® standards. Verification does not
ensure the accuracy of any specific composite presentation.
The Firm is a New Jersey-based, federally registered investment adviser that provides strategy-based asset management services to institutions, family offices and highnet-worth individuals in a separately managed account and/or fund format. The Firm’s has established policies for valuing portfolios, calculating performance, and preparing
GIPS® compliant presentations. These policies, as well as a list of all of the firm’s composite descriptions, are available upon written request.
Bramshill Income Performance is a fixed income strategy that seeks to maximize total return across various asset classes. This strategy invests in a tactical portfolio of
income-producing securities, including investment grade and high-yield bonds, preferred securities, municipal bonds, U.S. Treasuries, income exchange-traded funds, and
closed-end funds. The portfolio is actively managed, incorporating sector allocations and tactical hedging during various interest rate and market environments. This strategy
uses fundamental credit and relative value analysis, and focuses on securities with transparent pricing, actively-traded capital structures and liquidity. This strategy is unlevered, highly-liquid, not benchmark dependent, and seeks to maintain an investment grade portfolio. Accounts will generally hold a maximum of 50 investment positions. The
Barclays Capital U.S. Aggregate Index is listed as the strategy’s benchmark and is intended to serve as a comparative indicator of the overall performance relative to the U.S.
dollar denominated investment grade fixed rate taxable bond market. The index currently includes U.S. Treasuries, government related securities, corporate bonds, agency
mortgage-backed passthroughs, consumer asset-based securities, and commercial mortgage-backed securities. Indexes are not securities in which direct investments can
be made and they do not account for the fees and expenses generally associated with investable products.
In calculating net returns, the Firm aggregates the net realized/unrealized capital gains/losses and investment income achieved in composite accounts, net of all trading
expenses, investment management fees, custody fees and fund maintenance fees (where applicable). Gross returns are gross of investment management fees and net of
all trading expenses, custody fees and fund maintenance fees (where applicable). The standard management fee for the strategy is 100 basis points (1.00%) per annum;
however, actual fee rates vary. Internal dispersion is calculated using the equal-weighted standard deviation of annual gross returns of those portfolios that were included in
the composite for the entire year. For purposes of the GIPS® composite, the minimum initial investment is $100,000 and the creation date is January 2016. All performance
is expressed in U.S. Dollars.
Past performance does not guarantee of future results, as there can be no assurance the Firm will be able to achieve results similar to those depicted herein. Investing involves
risk, including the potential loss of principal.
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EQUITY FUND
Fund C
Fact Sheet as of 7/27/16
CONTACT
PORTFOLIO MANAGEMENT TEAM
Carla Seely
Freisenbruch-Meyer Management Services
75 Front Street,
Hamilton, HM CX, Bermuda
441-297-8686
[email protected]
Keith Lane-Zucker
Managing Director, Ingalls & Snyder LLC
28 years investment experience. Managing
Fund since 11/1/2011.
Elizabeth Larson
Senior Vice President, Ingalls & Snyder LLC
27 years investment experience.
FUND INFORMATION
ORMATION
Asset Class:
Equity
Assets:
$22 million
Expense Ratio:
1.84
Fund Manager:
Ingalls & Snyder LLC
Fund Objective:
Long Term Growth
Number of Holdings:
25
Load Structure:
No Load
Auditor:
PricewaterhouseCoopers Ltd.
Inception Date:
September 1, 1996
Distribution Frequency:
Daily
NAV Frequency:
Daily
Administrator:
Altree Fund Services
FUND STRATEGY
Our strategy is to carefully select equities of high grade companies having strong financial underpinnings and
prospects for above-average growth in earnings over an extended period of time. We seek to invest in
companies that often share a number of characteristics including: a high operating margin and a high return
on equity (often resulting from a superior business franchise involving strong brands and other competitive
advantages), a conservative balance sheet, a highly capable management team, and a diversified geographic
exposure.
FUND PERFORMANCE as of 7/27/16
Annual Returns (%) – Net of Fees
Performance
YTD
1 Year
3 Year
5 Year
10 Year
Since
Inception
Front Street Equity
6.65%
5.97%
7.95%
8.03%
6.22%
6.60%
S&P 500 Index
7.30%
5.62%
11.14%
13.34%
7.74%
7.95%
MSCI World Index
4.35%
1.12%
7.23%
8.54%
5.43%
6.44%
Benchmark
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GROWTH OF $10,000 SINCE INCEPTION
40,000.00
35,000.00
30,000.00
25,000.00
20,000.00
15,000.00
10,000.00
5,000.00
-
SECTOR ALLOCATION
GEOGRAPHIC ALLOCATION
Cash and Cash Healthcare
3%
Equivalents
Energy
4%
Financials
2%
8%
Consumer
Discretionary
7%
Industrials
21%
Consumer
Staples
36%
83%
Information
Technology
19%
T
TOP TEN HOLDINGS %
Company
Berkshire Hathaway Cl B
General Electric
Alphabet Inc.
Nestle SA
Unilever NV
Coca Cola
Procter & Gamble
Microsoft
General Mills
United Technologies
17%
North America
European
ASSET ALLOCATION
6.23M
5.94
5.32
5.14
5.11
4.86
4.60
4.35
4.35
4.31
4.4%
Common
Stocks
95.6%
Cash and
Cash
Equivalents
IMPORTANT DISCLOSURES
The Front Street Funds Trust is authorized as a Collective Investment Scheme (CIS) by the Bermuda Monetary Authority.
Past performance is not an indication of future performance, performance data shown represents past performance only. The investment return and
principal value of an investment will fluctuate based upon market value, no investment returns are guaranteed.
The material contained in this document is for information purposes only. It is not intended as an offer or solicitation for purchase or sale of any
security or financial instrument, nor is it advice or a recommendation to enter into any transaction. The Front Street Funds Trust and its related entities
do not warrant the accuracy of the information provided herein, either expressed or implied, for any particular purpose.
Please refer to the prospectus and related documentation for further information regarding the investment offering.
Front Street Funds Trust performance data is shown as net of fees.
WWW.FMGROUP.BM