Preferred-Plus (IPPPX)

Preferred-Plus (IPPPX)

Preferred-Plus Overview

The Fund’s primary investment objective is to seek current income. The Fund invests in preferred equities and an S&P500 index-based option overlay for additional income.

Potential Benefits

Fund Details

Documents

12-31-2021Preferred-Plus Fact SheetDownload
02-01-2022Preferred-Plus ProspectusDownload
02-01-2022Preferred-Plus SAIDownload
09-30-2021Preferred-Plus Annual ReportDownload
03-31-2021Preferred-Plus Semi-Annual ReportDownload
06-30-2021Preferred-Plus SOIDownload
12-31-2020Preferred-Plus SOIDownload

Performance Returns

Data as of 6/30/21

  Qtr. EndYTD1-Year Annualized3-Year AnnualizedSince Inception Annualized
(12/24/18)
Preferred-Plus1.61%7.74%7.74%12.06%12.05%
Benchmark (S&P U.S. Preferred Stock Index)1.16%6.64%6.64%10.64%11.46%

Performance data quoted represents past performance which is no guarantee of future results. Performance returns stated net of fees. Current performance may be lower or higher than the performance quoted. For up-to-date performance data please call 800-869-1679. The investment return and the principal value of an investment will fluctuate and shares, when redeemed, may be worth more or less than their original cost. Returns are historical and include change in share price and reinvestment of all distributions. There is no guarantee that any investment objective will be achieved.

During the periods presented above, the advisor waived fees and/or reimbursed expenses.¹ Without this arrangement, performance would be lower.

Benchmark returns are shown for comparative purposes only and may not necessarily be representative of the Fund’s portfolio.

S&P U.S. Preferred Stock Index is an index designed to measure the performance of the U.S. preferred stock market and consists of U.S. preferred stocks with a market cap greater than $100 million and a maturity of at least one year or longer.

An investor cannot invest directly in an index, and index performance does not reflect the deduction of any fees, expenses or taxes

Because of its option overlay, the Funds are subject to special risk considerations described in the Fund’s prospectus, which is available on this website.

For information on distribution yield of this fund, click here.

Yield

Data as of 6/30/21

NAV12.05
12 Month Distribution10.790941
12 Month Distribution Yield16.56%
SEC 30 Day Yield Unsubsidized23.84%
SEC 30 Day Yield Subsidized24.30%

Distributions

Data as of 6/30/21

Pay DateRecord DateEx-Dividend DateAmount/Share
12/30/2112/29/2112/30/21$0.19312
09/30/202109/29/202109/30/2021$0.20876
06/30/202106/29/202106/30/2021$0.19940
03/31/202103/30/202103/31/2021$0.18966
12/30/202012/29/202012/30/2020$0.09819
09/29/202009/28/202009/29/2020$0.10554
06/29/202006/26/202006/29/2020$0.11131
03/30/202003/27/202003/30/2020$0.09881
12/31/201912/30/201912/31/2019$0.20994
09/30/201909/27/201909/30/2019$0.16598
06/28/201906/27/201906/28/2019$0.09408
03/29/201903/28/201903/29/2019$0.11456

Estimated Sources of Distribution

Data as of 6/30/21

Pay DatePer Share DistributionNet Investment IncomeReturn of CapitalShort Term GainLong Term Gain
12/30/210.193120.113660.000000.032160.04730
09/30/20210.208760.092000.11676
06/30/20210.199400.089560.10984
03/31/20210.189660.098990.09067
12/30/20200.098190.09819
09/29/20200.105540.10554
06/29/20200.111310.11131
03/30/20200.098810.09881
12/31/20190.209940.093660.11628
09/30/20190.165980.105360.06062
06/28/20190.094080.074310.01977
03/29/20190.114560.11456

Click here for Important Tax Information

Estimates Only—Do Not Use for Tax Reporting Purposes

These tables provide estimates of the Fund’s distribution sources at the time of payment and should not be relied upon or used for tax planning or tax reporting purposes. Please see notice Pursuant to Rule 19a-1 under the Investment Company Act of 1940 (the “Notice”) here. The amounts and sources of distributions reported are estimates on a book basis, are not being provided for tax reporting purposes and may later be determined to be from taxable net investment income, short‐term gains, long‐term gains (to the extent permitted by law), and return of capital. A return of capital occurs when a portion of the money that you invested is paid back to you and should not be confused with “yield” or “income.” The Fund may report a return of capital on the Notice. This is because the Fund intends to distribute quarterly short-term option capital gains which will be categorized as an estimated return of capital at the time of distribution. The actual amounts and sources for tax reporting purposes will depend upon the Fund’s investment experience during the remainder of the fiscal year and may be subject to changes based on tax regulation.

The final determination of the source and tax characteristics of all distributions will be made after year-end and reported to you on Form 1099-DIV and these final amounts may vary significantly from the estimates provided above. Form 1099-DIV, which is mailed after the close of the calendar year, will specify how the distributions paid by the Fund during the year should be characterized and reported on your tax return (e.g. ordinary income, return of capital and capital gain).

1 12-Month Distribution is calculated by adding the Fund’s trailing 12-month distributions. 12-Month Distribution Yield is calculated by adding the Fund’s trailing 12-month distributions, and dividing the sum by the Fund’s most recent month ended NAV. The Fund may pay distributions in excess of its net investment company taxable income and, to the extent this occurs, the distribution yield quoted will include a return of capital. The estimated return of capital for each distribution is available, Pursuant to Rule 19a-1 under the Investment Company Act of 1940, by clicking here. However, please note that distributions are subject to recharacterization for tax purposes and the final tax treatment of these distributions will be reported to shareholders after the close of each calendar year on form 1099-DIV.

2 The SEC yield is calculated by dividing annualized net investment income per share during a 30-day period by the maximum offering price per share as of the close of that period. SEC yield reflects the rate at which the Fund is earning income on its current portfolio of securities. The SEC 30-Day Yield is computed under an SEC standardized formula and is based on the maximum offer price per share. Subsidized yields reflect fee waivers in effect. Without such waivers, yields would be reduced. Unsubsidized yields do not reflect fee waivers in effect.

Top Equity Holdings

Data as of 8/31/21

CompanySector% Net Assets
Bank of America Corp 5.875% Perpetual Pfd 03/15/28Financial Services2.33%
AerCap Holdings 5.875% Pfd 10/10/24Industrial2.17%
Regions Financial Corp 5.75% Perpetual Pfd 06/15/25Financial Services1.91%
Athene Holding Ltd 6.35% Perpetual Pfd 06/30/29Financial Services1.86%
Edison International 5.375% Perpetual Pfd 03/15/26Utilities1.83%
Truist Financial Corp 4.80% Perpetual Pfd 09/01/24Financial Services1.82%
Capital One Financial Corp 4.80% Perpetual Pfd 06/01/25Financial Services1.82%
Ally Financial Inc 4.70% Perpetual Pfd 05/15/26Financial Services1.81%
Equitable Holdings Inc 5.25% Pfd 12/15/24Financial Services1.67%
Capital One Financial Corp 5.00% Perpetual Pfd 12/01/24Financial Services1.50%

Portfolio holdings are subject to change without notice. The mention of specific securities is not a recommendation to buy, sell or hold any particular security. Weights may vary over time and holdings are subject to change without notice.

Sector Allocation

Data as of 8/31/21

Financial Services69.24%
Utilities8.11%
Real Estate6.69%
Industrial5.76%
Communication Services3.02%
Consumer Cyclical2.48%
Consumer Defensive1.68%
Money Market1.51%
Energy1.25%
Closed-End Funds0.23%
Put Option0.04%

Portfolio weights are subject to change without notice. Due to rounding, values might not add up to 100%. Sector allocation excludes written (short) put options.

Tax Information

DateDocument
06/28/2019Form 19(a)-1
09/30/2019Form 19(a)-1
12/31/2019N/A
03/31/2020N/A
06/30/2020N/A
09/30/2020N/A

The above notice Pursuant to Rule 19a-1 under the Investment Company Act of 1940 (the “Notice”) provides the reported amounts and sources of distributions. The reported amounts are estimates on a book basis, are not being provided for tax reporting purposes and may later be determined to be from taxable net investment income, short‐term gains, long‐term gains (to the extent permitted by law), and return of capital. A return of capital occurs when a portion of the money that you invested is paid back to you and should not be confused with “yield” or “income.” The Fund may report a return of capital quarterly on the Notice. This is because the Fund intends to distribute quarterly short-term option capital gains which will be categorized as an estimated return of capital at the time of distribution. The actual amounts and sources for tax reporting purposes will depend upon the Funds investment experience during the remainder of the fiscal year and may be subject to changes based on tax regulation.

The final determination of the source and tax characteristics of all distributions will be made after year-end and reported to you on Form 1099-DIV and these final amounts may vary significantly from the estimates provided above. Form 1099-DIV, which is mailed after the close of the calendar year, will specify how the distributions paid by the Fund during the year should be characterized and reported on your tax return (e.g. ordinary income, return of capital and capital gain).

Dividend Calendar

Record DateEx-DatePay Date
03/30/202103/31/202103/31/2021
06/29/202106/30/202106/30/2021
09/29/202109/30/202109/30/2021
12/29/202112/30/202112/30/2021

Mutual fund investing involves risk. Principal loss is possible.

An investor should consider the investment objectives, risks, charges and expenses carefully before investing. A prospectus containing this and other information may be obtained by calling 1-800-869-1679 or clicking here. Please read the prospectus carefully before investing.

NOT FDIC INSURED | NO BANK GUARANTEE | MAY LOSE VALUE

Distributed by Arbor Court Capital, LLC (Member FINRA)

Important Information

Expense Ratios as disclosed in the February 1, 2021 Prospectus:

I Share
Gross Expense Ratio 2.52%
Net Expense Ratio 1.59%

(1) Expense ratios as disclosed in the February 1, 2021 Prospectus. Innovative Portfolios, LLC, the Fund’s investment advisor (the Advisor) has contractually agreed to waive its fee and/or reimburse expenses, at least through January 31, 2022, so that the Fund’s total annual operating expenses (excluding acquired fund fees and expenses, taxes and extraordinary expenses) do not exceed 1.50% for the Class I shares. Without this arrangement, performance would be lower.

(2) Par: Equal to the nominal or face value of a security. Par value has no relation to market value, the market price for a bond or preferred stock may be above or below par. Par value has importance with bonds and preferred stock, as preferred dividends and bond interest are normally stated as a percentage of the par value of a preferred stock or bond issue.

Portfolio holdings are subject to change without notice. The mention of specific securities is not a recommendation or solicitation to buy, sell or hold any particular security.

NAV per share is as of the prior day’s market close of regular trading on the NYSE, generally 4:00 p.m. Eastern time, on each day the NYSE is open for trading.

The Fund invests in options. All investment strategies carry risk, and transactions in options may carry a high degree of risk. Investors should carefully consider a Fund’s risks and investment objectives as an investment in a Fund may not be appropriate for all investors and is not designed to be a complete investment program. Investing in the Funds involves risk. It is possible that investing in the Funds may result in a loss. Before making an investment/allocation decision, investors and registered investment advisers (RIAs) allocating to clients’ account should consider the suitability of this investment with respect to such investor’s or client’s net worth, income, age, and risk tolerance. Investment should be avoided where an investor has a short-term investing time horizon and/or cannot bear the loss of some or all of their investment. Before investing in the Fund, investors and RIAs allocating to client’s account should read the discussion of risks of investing in the prospectus. You can obtain a prospectus by clicking here.

This material represents an assessment of the market environment at a specific point in time and should not be relied upon as investment advice, does not constitute a recommendation to buy or sell a security or other investment and is not intended to predict or depict performance of any investment. This material is not being provided in a fiduciary capacity and is not intended to recommend any investment policy or investment strategy or take into account the specific objectives or circumstances of any investor. Please consult with your investment, tax or legal adviser regarding your individual circumstances prior to investing.

The Funds are offered only to United States residents, and information on this site is intended only for such persons.