Press Release

DALLAS–(BUSINESS WIRE)–Regan Capital, an investment firm with $1.3 billion in assets under management, today announced the launch of the Regan Floating Rate MBS ETF (NYSE: MBSF), an actively managed exchange-traded fund that invests primarily in floating rate Agency Residential Mortgage-Backed Securities (RMBS).

“Agency Residential Mortgage-Backed Securities give investors the best of both worlds: the potential to earn a higher yield than a traditional Treasury bond, while also seeking to benefit from the U.S. government’s ironclad financial backing”

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Agency RMBS typically offer higher yields than Treasury bonds without significant additional risk, since Agency RMBS are issued by government sponsored entities, such as Fannie Mae and Freddie Mac.

“Agency Residential Mortgage-Backed Securities give investors the best of both worlds: the potential to earn a higher yield than a traditional Treasury bond, while also seeking to benefit from the U.S. government’s ironclad financial backing,” said Skyler Weinand, chief investment officer and managing member of Regan Capital and portfolio manager of MBSF.

MBSF seeks to enhance the spread that Agency RMBS yields typically have over yields on Treasury bonds through the alpha generated from its portfolio of actively managed Agency RMBS.

“Agency Residential Mortgage-Backed Securities may be an attractive alternative for investors who park cash in money market funds, which won’t yield as much if the Federal Reserve cuts interest rates,” Weinand added. “Right now, there aren’t many alternatives to money markets for investors looking for a place to keep cash.”

MBSF’s portfolio of Agency RMBS comes with floating rates, which means that the bond’s interest rate moves based on short-term Treasury rates. As a result, MBSF can perform in a variety of interest rate environments, and we believe it is interest rate neutral. If interest rates rise, the fund offers higher yields. If interest rates decline, mortgage holders may be more likely to refinance, or prepay their mortgage balances in order to lock-in a lower interest rate, which can increase the value of MBSF’s holdings. Interest rates and bond prices move in opposite directions.

The Agency RMBS in MBSF are purchased on over-the-counter (OTC) markets, which are typically only available to investors with deep relationships with primary dealers and brokers.

“We aim to democratize access to Residential Mortgage-Backed Securities for all investors with the ETF wrapper, which also provides liquidity and low fees for investors,” Weinand added, who was previously head of residential and consumer asset-back securities trading at Cantor Fitzgerald.

MBSF is launching with roughly $25 million from select seed investors. MBSF charges a 0.49% annual operating expense fee and does not seek to replicate the performance of any index.

In 2020, Regan Capital launched the Regan Total Return Income Fund (RCIRX), a mutual fund which invests across the fixed income market with a focus on mortgage bonds. It was the recipient of the 5-Star Morningstar Rating™, based on risk-adjusted returns for the three-year and overall periods, out of 286 funds in the Nontraditional Bond Category as of 12/31/2023.

For more information, please visit: https://www.regancapital.com/etf-mbsf/

About Regan Capital

Founded in 2011, Regan Capital, LLC is an SEC Registered Investment Adviser. The firm’s target investor base includes endowments and foundations, banks and insurance companies, corporate and public pension plans, family offices, high net worth individuals and Registered Investment Advisors. The firm is based in Dallas, Texas.

Regan Capital was founded by Skyler Weinand, who serves as chief investment officer and managing member. Previously, Weinand was head of residential and consumer asset-backed (ABS) securities trading at Cantor Fitzgerald from July 2007 to March 2011 where he generated in excess of $40mm in revenue per year off of a $15mm balance sheet. Prior to that, Weinand was responsible for trading a $2+ billion mortgage-backed securities (MBS) portfolio at Sit Investment Associates from July 2005 to June 2007. From 2001 to 2005, Weinand was employed with GMAC-RFC, where he was responsible for portfolio valuation on a $1 billion MBS subordinate book, structuring CDOs and structuring the first re-performing securitizations to come to market.

DISCLOSURES:

This information is for use with concurrent or prior delivery of the Regan Floating Rate MBS ETF prospectus. Investors should consider the investment objective, risks, and charges and expenses of the Fund(s) before investing. The prospectus contains this and other information about the Fund(s) and should be read carefully before investing. The prospectus may be obtained by calling the Fund toll-free at (844)-988-6273 or at www.regancapital.com.

The Regan Total Return Income Fund’s investment objectives, risks, charges, and expenses must be considered carefully before investing. The prospectus contains this and other important information about the investment company. Please read it carefully before investing. A free hard copy of the prospectus can be requested by calling +1 888-988-6273 or at www.regancapital.com.

Regan Floating Rate MBS ETF is distributed by Northern Lights Distributors, LLC member FINRA/SIPC. Regan Capital, LLC is not affiliated with Northern Lights Distributors, LLC

The Regan Total Return Income Fund is distributed by Quasar Distributors, LLC, which is not affiliated with Regan Capital, LLC, Northern Lights Distributors, LLC, or any of their affiliates.

The Regan Floating Rate MBS ETF has a limited history of operations with an inception date of February 28, 2024.

IMPORTANT RISKS: Exchange Traded Fund investing involves risk. Principal loss is possible. Investments in asset-backed and mortgage-backed securities include additional risks that investors should be aware of, including credit risk, prepayment risk, possible illiquidity, and default, as well as increased susceptibility to adverse economic developments. Investments in debt securities typically decrease when interest rates rise. This risk is usually greater for longer-term debt securities. Investments in lower-rated and non-rated securities present a greater risk of loss of principal and interest than higher-rated securities do. The Fund is newly formed and has no operating history. An investment in the Fund is not a deposit of any bank and is not insured or guaranteed by any government agency. There is no guarantee that any investment strategy will achieve its objectives, generate profits, or avoid losses.

The Fund may effect creations and redemptions in cash and therefore may recognize gains that may not have been recognized if it were to distribute portfolio securities in-kind. Investments in shares may be less tax-efficient that an investment in an ETF that distributes portfolio securities entirely in-kind.

Mutual fund investing involves risk. Principal loss is possible. Investments in asset-backed and mortgage-backed securities include additional risks that investors should be aware of, including credit risk, prepayment risk, possible illiquidity, and default, as well as increased susceptibility to adverse economic developments. Investments in debt securities typically decrease when interest rates rise. This risk is usually greater for longer-term debt securities. Investments in lower-rated and nonrated securities present a greater risk of loss of principal and interest than higher-rated securities do. For more information on these risks and other risks of the fund, please see the Prospectus.

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 Morningstar Rating does not include any adjustment for sales loads. 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. The weights are: 100% three-year rating for 36-59 months of total returns, 60% five-year rating/40% three-year rating for 60-119 months of total returns, and 50% 10-year rating/30% five-year rating/20% three-year rating for 120 or more months of total returns. While the 10-year overall star rating formula seems to give the most weight to the 10- year period, the most recent three-year period actually has the greatest impact because it is included in all three rating periods.

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