Click here for the Miller Income Funds Prospectus
Click here for the Miller Value Partners Appreciation ETF Prospectus
Click here for the Miller Value Partners Leverage ETF Prospectus
Read the Prospectus and Summary Prospectus carefully before investing.
Holdings are subject to change.
Investing involves risk, including possible loss of principal. The Fund’s return may not match or achieve a high degree of correlation with the return of the Index. To the extent the Fund’s investments are concentrated in or have significant exposure to a particular issuer, industry or group of industries, or asset class, the Fund may be more vulnerable to adverse events affecting such issuer, industry or group of industries, or asset class than if the Fund’s investments were more broadly diversified. Issuer-specific events, including changes in the financial condition of an issuer, can have a negative impact on the value of the Fund.
The Miller Income Fund and the Miller Value Partners Appreciation ETF (MVPA) may seek indirect exposure to Bitcoin through various other holdings, but do not directly hold or seek exposure to the spot price of Bitcoin. Bitcoin and other cryptocurrencies are a relatively new asset class and are subject to unique and substantial risks.
Shares of any ETF are bought a sold at market price (not NAV) and are not individually redeemed from the Fund. Brokerage commissions will reduce returns.
Basis point (bps) is one hundredth of one percent. The S&P 500 Index is a market capitalization-weighted index of 500 widely held common stocks. The Russell 2000® Value Index measures the performance of the smallcap value segment of the US equity universe. The Russell 1000® Growth Index measures the performance of those Russell 1000 Index companies with higher price-to-book ratios and higher forecasted growth values. Enterprise Value to Earnings Before Income, Taxes, Depreciation, and Amortization (EV/EBITDA) is the enterprise multiple and is used to determine the value of a company. The ICE BofA Merrill Lynch U.S. High Yield Master II Index tracks the performance of below-investment-grade, but not in default, U.S. dollar-denominated corporate bonds publicly issued in the U.S. domestic market, and includes issues with a credit rating of BBB or below, as rated by Moody’s and S&P. REIT is Real Estate Investment Trust. Book value is the value at which an asset is carried on a balance sheet. Dividend yield is the ratio of a company’s annual dividend compared to its share price. Net leverage ratio is a financial metric that measures a company’s debt to earnings, taking into account cash and cash equivalents. Free cash flow is earnings before depreciation, amortization, and non-cash charges minus maintenance capital expenditures. E&P is Exploration and Production. M&A is mergers and acquisitions. TTM is trailing 12 months. EBITDA is earnings before interest, taxes, depreciation and amortization and is a calculation of a company’s financial health. Operating cash flow (OCF) is the net amount of cash generated by a company’s core business operations, reflecting its ability to turn a profit and fund daily activities without relying on external financing. Capital Expenditures (CAPEX) are payments made for goods or services that are recorded on a company’s balance sheet instead of expensed on the income statement.
Investors cannot invest directly in an index and unmanaged index returns do not reflect any fees, expenses or sales charges.
The Miller Value Partners Leverage ETF (the “Fund”) will seek its investment objective by investing in either a leveraged position or unleveraged position as described under Principal Investment Strategies. If the holdings for today are PROSHARES ULTRA S&P 500 (SSO), then the Fund is in a 2x leveraged position. If the holdings for today are SPDR S&P 500 ETF Trust SPY, then the Fund is not in a leveraged position.
Principal Investment Strategies: When the Fund is in a leveraged position, the Fund invests in Leveraged ETFs that seek daily leveraged exposure equal to 200% of the S&P 500® Index (the “S&P 500 Index,” or the “Index”). As a result, when the Fund is in a leveraged position, the Fund may be riskier than alternatives that do not use leverage because the objective of the Leveraged ETFs in which the Fund invests is to magnify the daily performance of the Index. When the Fund is in a leveraged position, the return of the Fund for periods longer than a single day will be the result of the Leveraged ETFs’ return for each day compounded over the period.
The Fund expects that it will be invested in a Leveraged ETF for periods greater than one day when the Adviser’s trading signals so indicate. As a result, the Fund will be subject to the risks of compounding that affect investments in Leveraged ETFs, and the Fund’s returns during such a period are consequently expected to differ from 200% of the daily return of the Leveraged ETF.
For periods longer than a single day, the Fund will lose money if the Underlying ETF’s performance is flat, and it is possible that the Fund will lose money even if the value of the Index rises. This effect can be magnified in volatile markets. Consequently, these investment vehicles may be extremely volatile and can potentially expose the Fund to complete loss of its investment. Longer holding periods, higher volatility of the Index, and leveraged exposure each increase the impact of compounding on an investor’s returns. During periods in which the Index experiences higher volatility, that volatility may affect the Leveraged ETFs’ returns, and the Fund’s return as a result, as much as or more than the return of the Index. Although the Fund, when in a leveraged position, invests in Leveraged ETFs that seek daily leveraged exposure equal to 200% of the Index, the Fund does not target a specific level of leverage over any time period that is more than a single day. Rather, the Fund opportunistically uses leverage in seeking to achieve its objective of capital appreciation over a multi-year horizon. On a daily basis, Investors may check the Fund’s holdings on the fund’s website at https://etf.millervaluefunds.com/mvpl to see whether the Fund is in a leveraged or unleveraged position.
The information presented should not be considered a recommendation to purchase or sell any security and should not be relied upon as investment advice. It should not be assumed that any purchase or sale decisions will be profitable or will equal the performance of any security mentioned. References to specific securities are for illustrative purposes only. Portfolio composition is shown as of a point in time and is subject to change without notice.
The views expressed in this commentary reflect those of the author as of the date of the commentary. Any views are subject to change at any time based on market or other conditions, and Miller Value Partners disclaims any responsibility to update such views. These views are not intended to be a forecast of future events, a guarantee of future results or investment advice. Data from third-party sources cited herein is believed to be reliable, but may not have been independently audited by Miller Value Partners.
