The SMI Funds, advised by SMI Advisory Services, are a separate business from the SMI newsletter.
However, given the significant interest in the SMI Funds among newsletter readers, we thought it would be helpful for the newsletter to forward the following information from the SMI Funds regarding recent changes to their lineup.
The SMI 50/40/10 Fund (SMILX) is now available via broker platforms
On April 27, the "old" SMI 50/40/10 Fund (SMIRX) was reorganized into the SMI Conservative Allocation Fund (SMILX). The impact of this reorganization is that the Conservative Allocation Fund has been eliminated, and SMILX is now the "new" SMI 50/40/10 Fund.
There are two immediate and significant implications of this move:
- Lower Fees. The fees being charged to invest in SMI Advisory's 50/40/10 fund are now considerably lower than they were. Whereas fees were capped at 1.45% in SMIRX, SMILX has a significantly lower expense cap of just 1.15%. That's an immediate and substantial reduction in fees for the exact same investing strategy.
- Platform Availability. Whereas SMIRX was only available to investors through accounts held directly with the SMI Funds, the "new" 50/40/10 Fund (SMILX) is now available for purchase on most of the popular brokerage platforms (as the other SMI Funds are).
SMI Advisory is very excited about this fund reorganization, because it accomplishes two important goals. First, it lowers expenses for 50/40/10 investors (via the SMILX 1.15% expense cap) to roughly the same level as SMI's two other funds. Second, it makes the 50/40/10 approach widely available via the broker platforms.
Current SMI Fund lineup
The SMI Fund lineup has gone through a few changes over the years. Today it provides three clear options:
- The SMI Fund (SMIFX), which follows Fund Upgrading;
- The SMI Dynamic Allocation Fund (SMIDX), which follows Dynamic Asset Allocation (DAA);
- The SMI 50/40/10 Fund (SMILX), which follows DAA with 50% of the portfolio, Upgrading with 40%, and Sector Rotation with 10%.
SMI Private Client offers an alternative
SMI Advisory Services also provides separate account management for individuals. This allows for a custom blend of strategies, specifically designed to meet your needs and preferences. To learn more about private account management options with SMI Advisory Services, visit smiprivateclient.com. (Note that this link will cause you to leave the SMI Newsletter website.)
You should carefully consider the investment objectives, potential risks, management fees, and charges and expenses of the Funds before investing. The prospectus contains this and other information about the Funds, and should be read carefully before investing. You may obtain a current copy of the Funds' prospectus by calling 877-SMI-FUND.
The SMI Funds are distributed by Unified Financial Securities, LLC. Given the significant differences between separately managed accounts and mutual funds, investors should consider the differences in expenses, tax implications and the overall objectives between separately managed accounts and mutual fund before investing. Investing involves risk, including loss of principal. There is no guarantee that the funds will meet their investment objectives.
Per the prospectus dated 4/27/18, the gross expense ratio of the 50/40/10 Fund (SMILX) is 2.19%, and the net expense ratio is 1.82%. The Advisor contractually has agreed to waive its fee and/or reimburse expenses to the extent necessary to maintain Total Annual Fund Operating Expenses (excluding interest, taxes, brokerage commissions, other expenses which are capitalized in accordance with generally accepted accounting principles, extraordinary expenses, dividend expense on short sales, 12b-1 fees, and acquired fund fees and expenses) at 1.15% of the SMI 50/40/10 Fund's average daily net assets through February 29, 2020.