The Giralda Fund (GDAMX)

The Giralda Fund (GDAMX)
for Risk-Managed Growth
June 2014
Fund Details
The Giralda Fund is an open-end mutual fund that seeks to provide primarily U.S. large cap
equity exposure while providing several layers of downside risk management. The managers’
goal is to limit asset depreciation during both protracted and catastrophic market downturns
while allowing asset appreciation in up-trending markets.
Fund Type
U.S. Large Cap
Equity Alternative
Load Type
No Load
Minimum Initial Investment
$260 million
Investment Strategy
The Giralda Fund embodies two main risk-managed investment strategies: momentumbased sector rotation and tail-risk hedging.1 Together, these are designed to seek protection
against protracted down markets and catastrophic crashes. Risk-managed investments
attempt to go beyond traditional diversification, asset allocation, and rebalancing – to
explicitly reduce portfolio volatility and/or limit downside potential.
Key Reasons to Invest
We believe that most investors should have exposure to the equity markets over the long
term to secure their financial future against inflation. Many have difficulty doing so when
the markets behave erratically. Riding out stock market volatility requires patience and
fortitude on the part of the investor. An investment like The Giralda Fund attempts to allay
investor fears and enable long-term investing.
We believe that The Giralda Fund is particularly suited to investors who wish to stay fully
invested in the equity markets yet protect themselves from adverse market conditions. The
Fund could serve as a core equity holding or as an alternative to stocks and actively or
passively managed equity funds.
Top Ten Sector Holdings (6/30/2014)
Security Description
iShares Dow Jones US Technology Sector
SPDR Financial Select Sector
Health Care
SPDR Health Care Sector
SPDR Consumer Discretionary Sector
SPDR Energy Select Sector
SPDR Consumer Staples Sector
SPDR Industrials Select Sector
SPDR Materials Select Sector
SPDR Utilities Select Sector
iShares Dow Jones US Telecom Sector
Sector Allocation as of 6/30/2014
2.9% 2.2%
Health Care
Sector Classifications are determined by referencing
the Global Industry Classification Standard (GICS®)
Codes developed by Standard & Poor’s and Morgan
Stanley Capital International. Sector Allocations are a
percent of Net Asset Value (NAV) and should not be
considered as recommendations to purchase or sell a
security. They are subject to change without notice.
Fund holdings and sector allocations are subject to change and should not be considered a
recommendation to buy or sell any security.
Tail Risk Hedging is the attempt to mitigate the adverse effects of rare but potentially catastrophic events.
© Giralda Advisors
Giralda Fund
June 2014
Portfolio Managers
The professional staff of Giralda Advisors, the investment advisor to The Giralda Fund, are recognized industry leaders in
developing and applying innovative risk management techniques to investing, with the dual goal of achieving superior longterm performance while providing protection against a wide variety of adverse market conditions.
Jerry Miccolis, CFA®, CFP®, FCAS, MAAA, CERA
Jerry Miccolis is a founding principal and the chief investment officer of Giralda Advisors. He is the lead portfolio manager of Sector
Dynamics, The Giralda Fund, and The Giralda Risk-Managed Growth Fund.
Jerry has more than four decades of experience in the investment management, risk management, and actuarial fields, and he shares his
expertise through various speaking engagements, publications and as the co-author of the book Asset Allocation For Dummies®. Prior to
founding Giralda Advisors, he served as chief investment officer of Brinton Eaton Wealth Advisors. Previously, Jerry was a principal and
global leader of the enterprise risk management practice at Towers Perrin.
Jerry has a bachelor’s degree in mathematics from Drexel University. He is a member of the Financial Planning Association, the New York
Society of Security Analysts and the American Academy of Actuaries. He has chaired several professional committees and is a widely
quoted author and speaker on the subject of strategic risk management.
Marina Goodman, CFA®, CFP®
Marina Goodman is an investment strategist at Giralda Advisors and a portfolio manager of Sector Dynamics, The Giralda Fund, and The
Giralda Risk-Managed Growth Fund.
Previously, Marina was an investment strategist at Brinton Eaton Wealth Advisors and an actuarial associate at MetLife, where she
evaluated investment strategies and developed financial models and Monte Carlo simulations for new products.
Marina has bachelor’s degrees in mathematics and economics from Cornell University. She has authored several articles on risk-managed
investing for the Journal of Financial Planning.
Giralda Advisors’ professional staff includes Rohith Eggidi, investment analyst, and Jonathan Katz, investment operations associate.
There is no guarantee that The Giralda Fund will achieve its objectives, generate positive returns, or avoid losses.
Investors should carefully consider the investment objectives, risks, charges and expenses of The Giralda Fund. A purchase can
be transacted directly with the mutual fund company. No-load mutual funds are sold without a sales charge; however, they have
ongoing expenses, such as management fees. The expense ratio for the Fund is 0.18%. Total annual fund operating expenses of the
Fund are 0.43% including “acquired fund fees and expenses” (i.e., the fees and expenses embedded in the underlying investments,
such as ETFs, within the Fund). The Fund’s investment adviser has contractually agreed to waive its fees, at least until October
31, 2014. Without this waiver, the Fund’s total annual operating expenses would be 1.43% including “acquired fund fees and
expenses.” This and other important information about The Giralda Fund is contained in the prospectus, which can be obtained at or by calling 855-447-2532 (855-GIRALDA). The prospectus should be read carefully before investing. The
Giralda Fund is distributed by Northern Lights Distributors, LLC member FINRA/SIPC. Giralda Advisors, LLC, is not affiliated with
Northern Lights Distributors, LLC.
Mutual Funds involve risk including the possible loss of principal. ETFs and mutual funds are subject to specific risks, depending on the nature of
the underlying strategy of the fund. These risks could include liquidity risk and sector risk, as well as risks associated with fixed income securities,
real estate investments, and commodities, to name a few. Investments in foreign securities could subject the Fund to greater risks including,
currency fluctuation, economic conditions, and different governmental and accounting standards. In addition to the risks generally associated
with investing in securities of foreign companies, countries with emerging markets also may have relatively unstable governments, social and legal
systems that do not protect shareholders, economies based on only a few industries, and securities markets that trade a small number of issues.
Investments in lesser-known, small and medium capitalization companies may be more vulnerable than larger, more established organizations.
As a non‐diversified fund, the Fund may be more vulnerable to any single economic, business, political or regulatory occurrence than a diversified
investment company fund. Real estate values rise and fall in response to a variety of factors, including local, regional and national economic
conditions, interest rates and tax considerations. Investing in the commodities markets will subject the Fund to potentially greater volatility than
traditional securities. Derivative instruments involve risks different from, or possibly greater than, the risks associated with investing directly in
securities and other traditional investments. Equity market-related structured notes involve leverage risk, tracking risk and issuer default risk.
© Giralda Advisors