Ocean Park Asset Management launched its first exchange-traded funds (ETFs) on July 11, 2024. These new ETFs are emblematic of Ocean Park’s commitment to offering the firm’s disciplined investment process across a broad suite of investment products.
The Ocean Park ETFs follow the firm’s quantitative, rules-based investment process with a focus on trend following, security selection and a trailing stop discipline. The four ETFs (two equity-focused and two fixed-income focused) each have the objectives of providing total return and limiting exposure to downside risk:
- Ocean Park Domestic ETF (DUKQ) : can invest in US Equity ETFs that are exhibiting uptrends, including those based on market capitalization, styles, factors, sectors and industries. The Fund can also be invested in cash equivalents when US Equity ETFs are not in uptrends.
- Ocean Park International ETF (DUKX) : can invest in International Equity ETFs, which include Emerging Market ETFs, that are exhibiting uptrends. Examples include those based on market capitalization, styles, factors, regions and countries. The Fund can also be invested in cash equivalents when International Equity ETFs are not in uptrends.
- Ocean Park Diversified Income ETF (DUKZ) : can invest in areas of the bond market that are exhibiting uptrends, including those that invest in Treasuries, investment grade and high yield corporate bonds, investment grade and high yield municipal bonds, mortgage-backed securities, developed international and emerging market bonds, convertible bonds, preferred securities and bank loans. The Fund can also be invested in cash equivalents when fixed income ETFs are not in uptrends.
- Ocean Park High Income ETF (DUKH) : can invest in higher yielding areas of the bond market that are exhibiting uptrends, including those that invest in high yield corporate and municipal bonds, emerging market bonds, preferred securities and bank loans. The Fund can also invest tactically in Treasury ETFs and can be invested in cash equivalents when high income and Treasury ETFs are not in uptrends.
"The launch of our first Ocean Park ETFs to complement our mutual fund suite is a direct response to advisor demand for access to Ocean Park’s investment process in an ETF wrapper," said Skip Schweiss, CEO of Ocean Park Asset Management.
“The new suite of ETFs will allow individual investors and their financial advisors to create total portfolio solutions tailored to an individual’s objectives,” said Chief Investment Officer James St. Aubin. “While we believe mutual funds still have an important role to play in many portfolios, our ETFs will expand the accessibility of our approach to managing portfolio risk.”
In the fall, all Sierra Mutual Funds will shift to the Ocean Park branding, and the Sierra name will be retained only for private client offerings. The Ocean Park brand will then be reflected across the firm’s ETFs and Mutual Funds.
“We believe this simplified product framework will improve the experience for advisors, their clients and private account business,” said Schweiss. “Though parts of our business will be under a different name, Ocean Park will remain dedicated to providing innovative investment solutions tailored to the evolving demands of all our clients.”
For more information, visit the firm’s website at oceanparkam.com .
About Ocean Park Asset Management
Ocean Park Asset Management, LLC is an SEC registered investment advisor that serves as an investment adviser to an investment company registered under the Investment Company Act of 1940, where it provides investment management services to Mutual Funds and Exchange Traded Funds (ETFs), namely the Sierra Mutual Funds and the Ocean Park ETFs.
Ocean Park and its affiliates manage or advise over $5.3 billion of client assets, representative of regulatory AUM shown on Form ADV for Sierra Investment Management, Inc., Ocean Park Asset Management, Inc., and Ocean Park Asset Management, LLC. as of 12/31/23.
Ocean Park Asset Management, LLC and Ocean Park Asset Management, Inc. are affiliated SEC registered investment advisers located in the State of California. Registration does not imply a certain level of skill or training. For information pertaining to registration status, please call 844-727-1813 or refer to the Investment Adviser Public Disclosure website ( www.adviserinfo.sec.gov ). Learn more at oceanparkam.com .
RISKS and DISCLOSURES
Past performance does not guarantee future results and there is no assurance that any investment strategy will achieve its investment objective generate profits or avoid losses.
Investors should carefully consider the investment objectives, risks, charges, and expenses of the Sierra Mutual Funds. This and other information about the funds are contained in the prospectuses and should be read carefully before investing. The prospectus can be obtained on our website sierramutualfunds.com or by calling toll free 1-800-729-1467.
The Sierra Mutual Funds are distributed by Northern Lights Distributors, LLC, member FINRA/SIPC. Neither Sierra Investment Management, Inc., Ocean Park Asset Management, Inc. nor Ocean Park Asset Management LLC are affiliated with Northern Lights Distributors, LLC.
Advisory services to the Sierra Mutual Funds and Ocean Park ETFs are offered through Ocean Park Asset Management LLC, a registered investment adviser (“RIA”) regulated by the U.S. Securities and Exchange Commission (“SEC”). The advisory services are only offered in jurisdictions where the RIA is appropriately registered. The use of the term “registered” does not imply any particular level of skill or training and does not imply any approval by the SEC.
All investments involve risk, including loss of principal. All strategies are subject to various risks, including general market and operational risks, risks associated with the active/tactical management of investments, and specific risks related to the securities and investments recommended by Ocean Park.
Underlying Funds may invest in foreign emerging market countries that may have relatively unstable governments, weaker economies, and less-developed legal systems, which do not protect investors. In general, the price of a fixed income security falls when interest rates rise. Any strategy that includes inverse securities could cause the Fund to suffer significant losses. Underlying Fund investments in lower quality bonds, known as high-yield or junk bonds, present greater risk than bonds of higher quality. Municipal securities are subject to the risk that legislature changes and economic developments may adversely affect the value of the Fund’s investments. REIT risks include declines from deteriorating economic conditions, changes in property value, and defaults by borrower. Underlying Funds that own small and mid-capitalization companies may be more vulnerable than larger, more established organizations to adverse business or economic developments. In some instances, it may be less expensive for an investor to invest in the Underlying Funds directly.
Each ETF has specific risks, and the Prospectus should be carefully read before investing. ETFs are subject to specific risks, depending on the nature of the underlying strategy of the fund. These risks could include foreign risk, emerging market risk, liquidity risk, sector risk, as well as risks associated with fixed income securities, real estate investments, and commodities, to name a few. While the shares of ETFs are tradeable on secondary markets, they may not readily trade in all market conditions and may trade at significant discounts in periods of market stress. ETFs trade like stocks, are subject to investment risk, fluctuate in market value and may trade at prices above or below the ETF’s net asset value. Brokerage commissions and ETF expenses will reduce returns. There is no guarantee that the Fund will achieve its objective. The ETFs are newly formed and have no operating history. The Ocean Park funds are distributed by Northern Lights Distributors, LLC, member FINRA/SIPC. Ocean Park Asset Management, LLC is the investment adviser to the Ocean Park funds, and does not provide advisory services to retail clients. Ocean Park Asset Management, LLC is not affiliated with Northern Light Distributors, LLC.
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Tyler Bradford
Hewes Communications
(212) 207-9454
tyler@hewescomm.com
