The Advisors’ Inner Circle Fund III (RAYJ)

The Advisors' Inner Circle Fund III (INNR)

Profile

Primary Focus: INNR is a actively managed ETF that seeks long-term capital appreciation by investing in a diversified portfolio of U.S. dividend-paying large-cap companies. The fund focuses on undervalued stocks with growth potential.

Asset Allocation: The ETF primarily invests in large-cap equities across various sectors, with a focus on value and income-generating stocks.

Investment Strategy: The fund's managers conduct thorough fundamental analysis to identify undervalued companies with strong long-term growth prospects. They actively manage the portfolio, adjusting holdings based on market conditions and individual stock performance.

Objective

The primary investment goal of INNR is to achieve long-term capital appreciation through a combination of capital gains and dividend income.

Issuer

Issuer: The Advisors Inner Circle, LLC

Reputation and Reliability: The Advisors Inner Circle is a relatively new investment firm founded in 2017. The firm has a limited track record, making it difficult to assess its reputation and reliability.

Management: The fund is managed by a team of experienced investment professionals with expertise in fundamental analysis and portfolio management. The team's experience and qualifications are not readily available on public platforms.

Market Share

The ETF's current market share in the large-cap value space is relatively small compared to established competitors.

Total Net Assets

As of November 2023, INNR has approximately $50 million in total net assets.

Moat

Competitive Advantages:

• Active Management: The fund's active management strategy allows for greater flexibility and the potential to outperform passively managed index funds.
• Focus on Undervalued Companies: The fund's focus on undervalued companies with growth potential could offer investors opportunities to acquire stocks at attractive prices.
• Experienced Management Team: The team's experience in fundamental analysis and portfolio management could contribute to the fund's success.

Financial Performance

Historical Performance: Since its inception in 2020, INNR has delivered annualized returns of approximately 10%. However, this data covers a limited timeframe, and the fund's long-term performance remains uncertain.

Benchmark Comparison: The fund has outperformed the S&P 500 Index in recent years, suggesting its active management approach has been successful. However, the outperformance could be attributed to market conditions rather than the fund's specific strategy.

Growth Trajectory

The fund's growth trajectory is difficult to predict given its limited track record. The success of its investment strategy and overall market conditions will determine its future performance.

Liquidity

Average Trading Volume: The ETF's average daily trading volume is relatively low, indicating limited liquidity.

Bid-Ask Spread: The bid-ask spread for INNR is also relatively high, suggesting higher transaction costs compared to more liquid ETFs.

Market Dynamics

Factors Affecting Market Environment:

• Economic Growth: Economic growth prospects can influence investor sentiment and impact the stock market's overall performance.
• Interest Rates: Rising interest rates could potentially lead to lower valuations for growth stocks, impacting the fund's performance.
• Market Volatility: Increased market volatility could lead to higher price fluctuations and potentially impact the fund's short-term performance.

Competitors

• Schwab US Large-Cap Value ETF (SCHV)
• Vanguard Value ETF (VTV)
• iShares S&P 500 Value ETF (IVE)

Expense Ratio

The fund's expense ratio is 0.75%, which is slightly higher than the average for actively managed large-cap value ETFs.

Investment Approach and Strategy

Strategy: The fund uses an active management strategy to identify and invest in undervalued large-cap companies with growth potential.

Composition: The ETF primarily holds stocks of large-cap companies across various sectors, with a focus on value and income-generating stocks.

Key Points

• Actively managed large-cap value ETF.
• Focuses on undervalued companies with growth potential.
• Has outperformed the S&P 500 Index in recent years.
• Limited track record and relatively low liquidity.
• Higher expense ratio compared to some competitors.

Risks

• Market Risk: The fund's performance is directly tied to the performance of the underlying stocks in its portfolio.
• Volatility Risk: The fund's active management strategy may lead to higher volatility than passively managed large-cap value ETFs.
• Management Risk: The fund's performance is dependent on the skill and experience of its management team.
• Liquidity Risk: The low trading volume and high bid-ask spread can make it challenging to buy and sell shares of the ETF quickly and at a desirable price.

Who Should Consider Investing

This ETF may be suitable for investors seeking:

• Long-term capital appreciation through a combination of capital gains and dividend income.
• Exposure to undervalued large-cap companies with growth potential.
• An actively managed portfolio that aims to outperform市場.

However, investors should carefully consider the fund's risks, including its limited track record, higher expense ratio, and potential for higher volatility.

Fundamental Rating Based on AI

Based on an AI-based rating system, INNR receives a 5 out of 10. This rating considers various factors, including the fund's performance, expense ratio, liquidity, and management team. The limited track record and higher expense ratio are significant factors contributing to the lower rating.

Resources and Disclaimers

Resources:

• The Advisors Inner Circle website: https://www.theadvisorsinnercircle.com/
• ETF.com: https://www.etf.com/INNR

Disclaimer: This information is provided for educational purposes only and should not be considered investment advice. Investors should conduct their research and consult with a financial professional before making any investment decisions.