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
• No minimums for
certain employer-sponsored
retirement plans
$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

*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 12/31/2016 subject to change

Security Weight %
Wells Fargo & Co.3.54%
DISH Network Corp., 3.38%, 8/15/262.89%
Allergan plc2.87%
Huntington Bancshares, Inc.2.57%
CalAtlantic Group, Inc., 1.63%, 5/15/182.33%
Novellus Systems, Inc., 2.63%, 5/15/412.32%
Micron Technology, Inc., 3.00%, 11/15/432.25%
Priceline Group, Inc. (The), 1.00%, 3/15/182.07%
salesforce.com, Inc., 0.25%, 4/1/182.01%
Teva Pharmaceutical Finance Co. LLC, 0.25%, 2/1/261.99%
T-Mobile US, Inc.1.92%
Bank of America Corp.1.66%
NVIDIA Corp., 1.00%, 12/1/181.63%
Anthem, Inc.1.57%
Xilinx, Inc., 2.63%, 6/15/171.38%

Monthly Performance as of 02/28/2017

Total Returns
Fund1 month3 monthYTD1 yrSI1
Class A (NAV)2.16%6.26%5.23%18.00%3.42%
Class I (NAV)2.18%6.33%5.27%18.29%3.68%
Class R (NAV)2.14%6.19%5.19%17.70%3.16%
Class A with sales charges (MOP)2-2.44%1.52%0.47%12.65%0.58%
Bank of America Merrill Lynch All US Convertibles Index31.91%6.20%4.63%22.82%5.10%

Quarterly Performance as of 12/31/2016

Total Returns
Fund1 month3 monthYTD1 yrSI1
Class A (NAV)0.98%0.94%6.07%6.07%0.30%
Class I (NAV)1.00%1.00%6.34%6.34%0.55%
Class R (NAV)0.96%0.88%5.80%5.80%0.05%
Class A with sales charges (MOP)2-3.52%-3.61%1.32%1.32%-2.75%
Bank of America Merrill Lynch All US Convertibles Index31.41%2.10%10.43%10.43%2.50%

Expense Ratios as of 03/01/2017

Fund Gross Expense Ratio Net Expense Ratio4
Class A Shares2.17%1.30%
Class I Shares1.90%1.05%
Class R Shares2.40%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.

3BofA Merrill Lynch All U.S. Convertibles 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, 2018 (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, 2018.

Distributions

Class A

Record DateEx-DatePayable DateOrdinary Income
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

Class I

Record DateEx-DatePayable DateOrdinary Income
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

Class R

Record DateEx-DatePayable DateOrdinary Income
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