Investment Philosophy / Process

  • Seeks positive equity-like returns with lower risk than common stocks. The strategy focuses on publicly traded, U.S. convertible securities
  • A convertible security is generally a bond, preferred stock or other security that may be converted, within a specified period of time and at a pre-stated price or formula into common stock of the same or a different issuer
  • Seeks the opportunity to participate in the capital appreciation of the underlying common stocks, while relying on the fixed-income aspect of the convertible securities to provide current income and reduced price volatility

Fund Details

  Class A Class I Class R
Ticker TNFAX TNFIX TNFRX
CUSIP 68246A 793 68246A 777 68246A 769
ISIN US68246A7937 US68246A7770 US68246A7697
Investment Minimum* $1,000 for all accounts
except:
• $500 for certain fee-
based programs
• $500, if establishing
an Automatic Bank
Draft Plan
• $250 minimum for purchases
by accounts through eligible
financial intermediary platforms
that have entered into
selling or service agreements
with the Distributor and
that are eligible to purchase
Class A shares without
a sales charge
• No minimum for
certain employer-sponsored
retirement plans and
certain wrap fee based programs
$1,000,000 for certain
institutions and individuals
• $1,000 for certain
employees (or their
immediate family
members) of AXA
Financial or its
subsidiaries
• Class I Shares are
available to clients of
registered investment
advisers who have
$250,000 invested in
the Fund
• No minimum investment
for a wrap account client
of an eligible broker-dealer
or a client of a fee-based
planner that is unaffiliated
with a broker-dealer
No minimum
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*Read the Prospectus for more information.

How the Fund invests

Under normal market conditions, the Fund intends to invest at least 80% of its net assets, plus borrowings for investment purposes, in a diversified portfolio of convertible securities.

Fund Objective

Seeks a high level of total return.

Investment Process

1) Fundamental
Screening
Quantitative screening process to identify convertible securities for potential investment
2) Initial Analysis Once a security is identified, the subadviser evaluates the security's characteristics and weighs certain quantitative factors
3) In-depth Analysis Analysis of the security's issuer and the security's competitive position

Why Convertibles?

   
Risk/Reward Profile Potential upside benefit of equities with potential downside protection of bonds.
Diversification Potentially low correlation to other asset classes.
Yield Potential higher yield than underlying equity.
Placement in company capital structure Generally have senior standing in company's capital structure vs. owning company's common stock.

Portfolio Managers

Palisade logo

William W. Lee

Portfolio Manager, Convertible Securities at Palisade

Bill joined Palisade Capital Management in May 2006. Prior to joining Palisade, he was a portfolio manager at Loxias Fund Management, a capital structure arbitrage hedge fund. He was a director in the mergers & acquisitions group at Sony Corporation of America, an investment banking associate at Lehman Brothers and an equity analyst at Delphi Management with a focus on small cap value. Bill is a member of the Investment Policy Committee. He received his B.A. in Biology from Yale University and his M.B.A. from New York University, Stern School of Business.

The value of convertible securities fluctuates in relation to changes in interest rates and the credit quality of the issuer and, in addition, fluctuates in relation to the underlying common stock. A convertible security may be subject to redemption at the option of the issuer at a price established in the convertible security’s governing instrument, which may be different than the current market price of the security. If a convertible security held by the Fund is called for redemption, the Fund will be required to permit the issuer to redeem the security, convert it into underlying common stock or sell it to a third party. Investments by a Fund in convertible debt securities may not be subject to any ratings restrictions, although in such cases the Fund’s Sub-Adviser will consider such ratings, and any changes in such ratings, in its determination of whether the Fund should invest in and/or continue to hold the securities. Convertible securities are subject to equity risk, interest rate risk and credit risk and are often lower quality securities, which means that they are subject to the same risks as an investment in lower rated debt securities. Since it derives a portion of its value from the common stock into which it may be converted, a convertible security is also subject to the same types of market and issuer-specific risks that apply to the underlying common stock.

Top 15 Holdings as of 09/30/2018 subject to change

Security Weight %
Wells Fargo & Co., 7.50%3.13%
Becton Dickinson and Co., 6.13%2.51%
Microchip Technology, Inc., 1.63%, 2/15/272.05%
DISH Network Corp., 3.38%, 8/15/261.97%
Intel Corp., 3.25%, 8/1/391.93%
Micron Technology, Inc., 3.00%, 11/15/431.83%
Booking Holdings, Inc., 0.35%, 6/15/201.79%
Novellus Systems, Inc., 2.63%, 5/15/411.71%
Microchip Technology, Inc., 1.63%, 2/15/251.56%
Bank of America Corp., 7.25%1.50%
Cemex SAB de CV, 3.72%, 3/15/201.46%
Exact Sciences Corp., 1.00%, 1/15/251.33%
Advanced Micro Devices, Inc., 2.13%, 9/1/261.28%
Lumentum Holdings, Inc., 0.25%, 3/15/241.21%
Palo Alto Networks, Inc. 0.00%, 7/1/191.17%

Monthly Performance as of 10/31/2018

Total Returns
Fund1 month3 monthYTD1 yr3 yrSI1
Class A (NAV)-7.11%-5.08%-0.22%-0.46%5.84%3.95%
Class A with sales charges (MOP)2-11.25%-9.32%-4.70%-4.90%4.23%2.53%
Class I (NAV)-7.09%-5.02%-0.04%-0.23%6.10%4.21%
Class R (NAV)-7.22%-5.23%-0.50%-0.78%5.55%3.67%
ICE BofAML US Convertible Index3-6.05%-2.99%3.75%3.67%8.20%6.27%
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Quarterly Performance as of 09/30/2018

Total Returns
Fund1 month3 monthYTD1 yr3 yrSI1
Class A (NAV)-1.05%3.16%7.41%8.95%9.96%6.46%
Class A with sales charges (MOP)2-5.50%-1.49%2.59%4.02%8.30%4.96%
Class I (NAV)-1.12%3.13%7.59%9.20%10.23%6.72%
Class R (NAV)-1.07%3.10%7.24%8.70%9.69%6.20%
ICE BofAML US Convertible Index3-0.25%3.93%10.43%12.15%11.83%8.51%
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Morningstar Rating: U.S. Fund Convertibles Category
as of 10/31/2018

1290 Convertible Securities I (TNFIX) Rank Percentile Overall 3 Year
Rating
# of Funds 85 85

Overall Morningstar Rating as of 10/31/2018 based on risk-adjusted returns (I share).

Morningstar U.S. Fund Convertibles Category Ranking
as of 10/31/2018

1290 Convertible Securities I (TNFIX) Rank Percentile Morningstar RatingTM Out of # of Funds
1 Year 78 - 89
3 Year 58 85

^ As of 10/31/2018, for class I shares (TNFIX). Other share classes may have different ratings. The Morningstar Rating™ for funds, or “star rating”, is calculated for managed products (including mutual funds, variable annuity and variable life subaccounts, exchange-traded funds, closed-end funds, and separate accounts) with at least a three-year history. Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a managed product’s monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The top 10% of products in each product category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. The Overall Morningstar Rating for a managed product is derived from a weighted average of the performance figures associated with its three-, five-, and 10- year (if applicable) Morningstar Rating metrics. Past performance is no guarantee of future results. The Morningstar percentile ranking is based on the fund’s total-return percentile rank relative to all managed products that have the same category for the same time period. The highest (or most favorable) percentile rank is 1%, and the lowest (or least favorable) percentile rank is 100%. Morningstar total return includes both income and capital gains or losses and is not adjusted for sales charges.

Expense Ratios as of 03/01/2018

Fund Gross Expense Ratio Net Expense Ratio4
Class A Shares2.07%1.30%
Class I Shares1.82%1.05%
Class R Shares2.32%1.55%

Performance data quoted 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 sold or redeemed, may be worth more or less than the original cost. Current performance data may be higher or lower than actual data quoted. For the most current month-end performance data please call (888) 310-0416.

One cannot invest directly in an index.

Returns for periods of less than one year are not annualized.

1Fund inception date of July 6, 2015.

2Maximum Offering Price (MOP) for Class A shares includes the Fund's maximum sales charge of 4.50%. Performance shown at NAV does not include these sales charges and would have been lower had it been taken into account.

3ICE BofAML U.S. Convertible Index (the “Index”) consists of U.S. dollar denominated investment grade and non-investment grade convertible securities sold into the U.S. market and publicly traded in the United States. The Index constituents are market value weighted based on the convertible securities prices and outstanding shares, and the underlying index is rebalanced daily.

4Pursuant to a contract, 1290 Asset Managers has agreed to make payments or waive its management, administrative and other fees to limit the expenses of the Fund through April 30, 2019 (unless the Board of Trustees consents to an earlier revision or termination of this arrangement) ("Expense Limitation Arrangement") so that the annual operating expenses of the Fund (exclusive of taxes, interest, brokerage commissions, capitalized expenses (other than offering costs), fees and expenses of other investment companies in which the Fund may invest, 12b-1 fees, and extraordinary expenses) do not exceed an annual rate of average daily net assets of 1.05% for Class A shares, Class I shares and Class R Shares of the Fund. The Expense Limitation Arrangement may be terminated by 1290 Asset Managers® at any time after April 30, 2019.

Distributions

Class A

Record DateEx-DatePayable DateOrdinary IncomeShort-Term Capital GainLong-Term Capital Gain
10/30/201810/31/201810/31/2018$0.0141--
09/27/201809/28/201809/28/2018$0.0093--
08/30/201808/31/201808/31/2018$0.0031--
07/30/201807/31/201807/31/2018$0.0157--
06/28/201806/29/201806/29/2018$0.0027--
05/30/201805/31/201805/31/2018$0.0000--
04/27/201804/30/201804/30/2018$0.0167--
03/28/201803/29/201803/29/2018$0.0016--
02/27/201802/28/201802/28/2018$0.0067--
01/30/201801/31/201801/31/2018$0.0294--
12/13/201712/14/201712/14/2017$0.1290-$0.1090
11/29/201711/30/201711/30/2017$0.0061--
10/30/201710/31/201710/31/2017$0.0199--
09/28/201709/29/201709/29/2017$0.0130--
08/30/201708/31/201708/31/2017$0.0068--
07/28/201707/31/201707/31/2017$0.0177--
06/29/201706/30/201706/30/2017$0.0131--
05/30/201705/31/201705/31/2017$0.0064--
04/27/201704/28/201704/28/2017$0.0088--
03/30/201703/31/201703/31/2017$0.0161--
02/27/201702/28/201702/28/2017$0.0054--
01/30/201701/31/201701/31/2017$0.0219--
12/15/201612/16/201612/16/2016$0.0243--
11/29/201611/30/201611/30/2016$0.0821--
10/28/201610/31/201610/31/2016$0.0139--
09/29/201609/30/201609/30/2016$0.0137--
08/30/201608/31/201608/31/2016$0.0060--
07/28/201607/29/201607/29/2016$0.0135--
06/29/201606/30/201606/30/2016$0.0139--
05/27/201605/31/201605/31/2016$0.0061--
04/28/201604/29/201604/29/2016$0.0232--
03/30/201603/31/201603/31/2016$0.0110--
02/26/201602/29/201602/29/2016$0.0053--
01/28/201601/29/201601/29/2016$0.0173--
12/30/201512/31/201512/31/2015$0.0513--
11/27/201511/30/201511/30/2015$0.0067--
10/29/201510/30/201510/30/2015$0.0122--
09/29/201509/30/201509/30/2015$0.0078--
08/28/201508/31/201508/31/2015$0.0046--
07/30/201507/31/201507/31/2015$0.0076--
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Class I

Record DateEx-DatePayable DateOrdinary IncomeShort-Term Capital GainLong-Term Capital Gain
10/30/201810/31/201810/31/2018$0.0164--
09/27/201809/28/201809/28/2018$0.0116--
08/30/201808/31/201808/31/2018$0.0055--
07/30/201807/31/201807/31/2018$0.0181--
06/28/201806/29/201806/29/2018$0.0050--
05/30/201805/31/201805/31/2018$0.0000--
04/27/201804/30/201804/30/2018$0.0189--
03/28/201803/29/201803/29/2018$0.0039--
02/27/201802/28/201802/28/2018$0.0088--
01/30/201801/31/201801/31/2018$0.0318--
12/13/201712/14/201712/14/2017$0.1310-$0.1090
11/29/201711/30/201711/30/2017$0.0083--
10/30/201710/31/201710/31/2017$0.0222--
09/28/201709/29/201709/29/2017$0.0152--
08/30/201708/31/201708/31/2017$0.0091--
07/28/201707/31/201707/31/2017$0.0199--
06/29/201706/30/201706/30/2017$0.0152--
05/30/201705/31/201705/31/2017$0.0086--
04/27/201704/28/201704/28/2017$0.0109--
03/30/201703/31/201703/31/2017$0.0183--
02/27/201702/28/201702/28/2017$0.0074--
01/30/201701/31/201701/31/2017$0.0240--
12/15/201612/16/201612/16/2016$0.0264--
11/29/201611/30/201611/30/2016$0.0841--
10/28/201610/31/201610/31/2016$0.0160--
09/29/201609/30/201609/30/2016$0.0157--
08/30/201608/31/201608/31/2016$0.0080--
07/28/201607/29/201607/29/2016$0.0156--
06/29/201606/30/201606/30/2016$0.0158--
05/27/201605/31/201605/31/2016$0.0080--
04/28/201604/29/201604/29/2016$0.0251--
03/30/201603/31/201603/31/2016$0.0129--
02/26/201602/29/201602/29/2016$0.0070--
01/28/201601/29/201601/29/2016$0.0192--
12/30/201512/31/201512/31/2015$0.0533--
11/27/201511/30/201511/30/2015$0.0086--
10/29/201510/30/201510/30/2015$0.0142--
09/29/201509/30/201509/30/2015$0.0097--
08/28/201508/31/201508/31/2015$0.0066--
07/30/201507/31/201507/31/2015$0.0093--
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Class R

Record DateEx-DatePayable DateOrdinary IncomeShort-Term Capital GainLong-Term Capital Gain
10/30/201810/31/201810/31/2018$0.0118--
09/27/201809/28/201809/28/2018$0.0069--
08/30/201808/31/201808/31/2018$0.0007--
07/30/201807/31/201807/31/2018$0.0133--
06/28/201806/29/201806/29/2018$0.0004--
05/30/201805/31/201805/31/2018$0.0000--
04/27/201804/30/201804/30/2018$0.0144--
03/28/201803/29/201803/29/2018---
02/27/201802/28/201802/28/2018$0.0047--
01/30/201801/31/201801/31/2018$0.0271--
12/13/201712/14/201712/14/2017$0.1260-$0.1090
11/29/201711/30/201711/30/2017$0.0038--
10/30/201710/31/201710/31/2017$0.0176--
09/28/201709/29/201709/29/2017$0.0108--
08/30/201708/31/201708/31/2017$0.0046--
07/28/201707/31/201707/31/2017$0.0154--
06/29/201706/30/201706/30/2017$0.0109--
05/30/201705/31/201705/31/2017$0.0042--
04/27/201704/28/201704/28/2017$0.0067--
03/30/201703/31/201703/31/2017$0.0139--
02/27/201702/28/201702/28/2017$0.0035--
01/30/201701/31/201701/31/2017$0.0198--
12/15/201612/16/201612/16/2016$0.0222--
11/29/201611/30/201611/30/2016$0.0801--
10/28/201610/31/201610/31/2016$0.0119--
09/29/201609/30/201609/30/2016$0.0117--
08/30/201608/31/201608/31/2016$0.0039--
07/28/201607/29/201607/29/2016$0.0115--
06/29/201606/30/201606/30/2016$0.0121--
05/27/201605/31/201605/31/2016$0.0041--
04/28/201604/29/201604/29/2016$0.0213--
03/30/201603/31/201603/31/2016$0.0090--
02/26/201602/29/201602/29/2016$0.0036--
01/28/201601/29/201601/29/2016$0.0154--
12/30/201512/31/201512/31/2015$0.0492--
11/27/201511/30/201511/30/2015$0.0047--
10/29/201510/30/201510/30/2015$0.0101--
09/29/201509/30/201509/30/2015$0.0059--
08/28/201508/31/201508/31/2015$0.0026--
07/30/201507/31/201507/31/2015$0.0059--
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