ABOUT THIS FUND
HALX targets Heavy Asset, Low Obsolescence (HALO) stocks believed to be resilient against AI disruption due to their tangible asset intensity and business characteristics associated with durable, asset-backed cash flows. The fund tracks an index of large-cap US-listed companies across various sectors. Companies receive a HALO score based on three criteria: Tangible Asset Intensity (investment in physical productive assets), Durability of Cash Flows (stability and persistence of revenues and earnings), and Lower Intangible Asset Exposure (the degree to which the business model is supported by tangible versus intangible assets). To emphasize companies with less reliance on intangible or asset-light business models, the fund applies a downward score adjustment to the information technology and communication services sectors. The portfolio holds approximately 30 to 50 securities, weighted equally. The index is reconstituted and rebalanced quarterly.
