EVNT

AltShares Event-Driven ETF

 Objective

EVNT is a non-diversified, actively managed ETF that pursues an event-driven strategy, which seeks to profit by investing long and/or short in the equity and debt securities of companies whose prices the adviser believes are or will be impacted by a publicly announced or anticipated corporate event. The fund’s objective is to achieve capital appreciation over a full market cycle with lower volatility than the broad equity market.

 Why EVNT?

  • Advised by Water Island Capital, an independent, event-driven specialist with more than 20 years of experience managing event-driven strategies with daily liquidity

  • Event-driven investing seeks to generate returns from the outcomes of idiosyncratic corporate events, rather than the direction of broader credit or equity markets, and the strategy has historically provided a return profile with lower volatility than broader equity markets

  • A wide array of corporate events – which includes mergers and acquisitions, spin-offs, restructurings, refinancings, and more – occurs throughout the business cycle and at all points of the market cycle, providing investment opportunities regardless of the broader investment environment

  • The fund’s flexible approach may invest both long and short, in both equity and credit securities, and in both hard catalysts (which tend to be characterized by more definitive outcomes, shorter timelines, and lower levels of volatility) and soft catalysts (which tend to be characterized by less definitive outcomes, longer timelines, and greater levels of volatility – though also greater commensurate return)

  • The adviser has a strong culture of risk management which focuses on mitigating downside risks

  • By accessing an event-driven strategy in an ETF, investors may realize the benefits of an ETF structure such as tax efficiency, intraday liquidity, and daily holdings transparency

Downloads

Net asset value (NAV) represents the value of each share's portion of the fund's underlying net assets (including cash) at the end of the trading day. Market price represents the mid-point between the highest bid and the lowest offer on the listing exchange, as of the time that the Fund’s NAV is calculated (usually 4:00 pm Eastern time). 

Median Bid/Ask Spread Percentage is based on Rule 6c-11(c)(1)(v). To calculate the median bid-ask spread the fund, (i) identifies the ETF’s National Best Bid and Offer ("NBBO") as of the end of each 10-second interval during each trading day of the last 30 calendar days; (ii) divides the difference between each such bid and offer by the midpoint of the NBBO; and (iii) identify the median of those values.

The performance shown represents past performance. Past performance does not guarantee 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 shown. Performance data over 1 year is annualized. 

* Effective as of the close of business on September 17, 2021, the fund acquired the assets and assumed the performance, financial, and other historical information of the Water Island Long/Short Fund, an open-end mutual fund (incepted December 31, 2014) that was a series of The Arbitrage Funds, a registered investment company advised by Water Island Capital. The fund’s investment objectives, strategies and policies are substantially similar to those of the predecessor mutual fund and it was managed by the same portfolio managers. Performance information for periods prior to September 20, 2021 is the historical performance of the predecessor mutual fund and reflects the higher operating expenses of the predecessor mutual fund. The fund has lower expenses than the predecessor mutual fund. For periods prior to September 20, 2021, the fund’s performance would have been higher than shown had it operated with the fund’s current expense levels.

Performance for periods prior to May 12, 2019, does not reflect the fund’s current investment strategy. The predecessor mutual fund's past performance is not indicative of future results. The performance of the predecessor mutual fund reflects fee waivers that were in effect. If fee waivers had not been in place, the performance depicted for the predecessor mutual fund would have been reduced. High, double-digit returns were primarily achieved during favorable market conditions. Such returns are atypical and may not be repeatable.

IMPORTANT HOLDINGS INFORMATION: Portfolio holdings are based on total portfolio, and are subject to change at any time. Holdings are provided for informational purposes only and should not be construed as a recommendation to purchase or sell any security. 

Brokerage commissions may apply, and will reduce returns. Please visit the glossary for definitions of terms.

Risks:  Investments are subject to risk, including possible loss of principal. The fund is non-diversified, which means that it may invest a greater portion of its assets in one or a limited number of issuers and may invest overall in a smaller number of issuers than a diversified fund. The fund’s assets may also be concentrated in one or more industries from time to time, making it particularly susceptible to adverse events affecting those issuers and industries.

The fund uses investment techniques with risks that are different from those ordinarily associated with equity investments. Such risks include merger arbitrage risk (in that the proposed reorganizations in which the fund invests maybe renegotiated or terminated, in which case the fund may realize losses) and short sale risk (in that the fund will suffer a loss if it sells a security short and the value of the security rises rather than falls).  Short sales by a Fund theoretically involve unlimited loss potential since the market price of securities sold short may continuously increase.

 

The fund may invest in derivatives (such as forwards, futures including foreign forward currency contracts, options and swaps), which may cause the fund to be susceptible to credit risk and currency fluctuations.  Derivatives may be more sensitive to changes in market conditions and may amplify the risk of loss for the fund.  The fund may experience high portfolio turnover which could result in higher transaction costs and taxes.

Shares of the fund may be bought or sold throughout the day at their market price on the exchange on which they are listed. The market price of fund shares may be at, above, or below their net asset value ("NAV") and will fluctuate with changes in the NAV as well as with supply and demand in the market for the shares. The market price of fund shares may differ significantly from their NAV during periods of market volatility. Shares of the fund may only be redeemed directly with the fund at NAV by Authorized Participants, in large creation units. There can be no guarantee that an active trading market for fund shares will develop or be maintained or that their listing will continue or remain unchanged. Buying or selling fund shares on an exchange may require the payment of brokerage commissions and frequent trading may incur brokerage costs that detract significantly from investment returns.