Ballast Asset Management Charges into The ETF Market With an Active Small/Mid Cap Equity ETF

DALLAS, Dec. 3, 2020 /PRNewswire/ -- Ballast Asset Management ("Ballast"), a fundamental equity manager, today launched the Ballast Small/Midcap ETF (NYSE: MGMT), one of the first ETFs to actively trade small capitalization equities. In Ballast's opinion, small and mid-cap companies comprise a segment of the market that is both inefficient and poised for growth. Ballast seeks stellar management teams leading high-quality, smaller companies positioned to sustain growth and achieve success in the face of economic uncertainty.

MGMT is the newest entrant into a space that has traditionally been dominated by passive index ETFs. The investment team behind MGMT employs a rigorous research process to evaluate small and mid-cap companies and seeks to avoid companies that may not perform well. In contrast, passive small-cap ETFs may invest in both low quality and potentially distressed companies alongside higher-quality counterparts. Ballast's process is designed to uncover and invest in higher-quality companies led by outstanding management teams, which they believe will offer investors the opportunity to both diversify their assets and potentially earn exceptional returns.

"Investing in great management teams has been a hallmark of our approach for years," said Ragen Stienke, Founder and Portfolio Manager of Ballast Asset Management, the advisor to MGMT. "Our team dedicates significant time toward building relationships with management teams who have demonstrated an ability to act in the best interest of shareholders."

Ballast's investment process scrutinizes compensation structures, assesses management's alignment with shareholders, and evaluates responsible capital deployment.

"In today's economic environment, we are particularly interested in executives who can understand and effectively respond to macroeconomic and industry shocks," added Stienke. "First and foremost, we strive to minimize losses and downside volatility. Further, we seek to invest in such a way that our investors benefit when a company successfully pivots in the face of change."

MGMT retains the flexibility to continue to own high-quality compounders as they successfully execute on their strategies.

"When our work indicates a company is poised for success, we want our investors to benefit as long as the reward to risk balance remains in their favor. We don't want to be forced to sell simply because of a market capitalization limit," Stienke commented. "Other small cap strategies are often required to sell their best performers before intrinsic value is fully realized."

About Ballast Asset Management

The Ballast Small/Mid Cap ETF (the "Fund") seeks to generate positive risk adjusted returns. For more information on Ballast's ETF offering, visit www.mgmtetf.com.

Important Risk Information

The Fund is a new ETF and has a limited history of operations for investors to evaluate.  The Portfolio Manager has prior experience managing a mutual fund. However, the Adviser has not previously managed a mutual fund or an ETF. As a result, investors do not have a long-term track record of managing an ETF from which to judge the Adviser and the Adviser may not achieve the intended result in managing the Fund. Market risk includes the possibility that the Fund's investments will decline in value because of a downturn in the stock market, reducing the value of individual companies' stocks regardless of the success or failure of an individual company's operations. Securities of companies with small and medium market capitalizations are often more volatile and less liquid than investments in larger companies. Small and mid-cap companies may face a greater risk of business failure, which could increase the volatility of the Fund's portfolio. The Fund is actively-managed and is thus subject to management risk. The Adviser will apply its investment techniques and strategies in making investment decisions for the Fund, but there is no guarantee that its techniques will produce the intended results. The Fund faces numerous market trading risks, including the potential lack of an active market for Fund shares, losses from trading in secondary markets, and periods of high volatility and disruption in the creation/redemption process of the Fund.  The net asset value of the Fund will fluctuate based on changes in the value of the U.S. equity securities held by the Fund.

Investors should carefully consider the investment objectives, risks, charges, and expenses of the Ballast Small/Mid Cap ETF.  This and other important information about the ETF is contained in the Prospectus, which can be obtained at www.mgmtetf.com or by call (866) 383-6468.  The Prospectus should be read carefully before investing.  The Ballast Small/Mid Cap ETF is distributed by Northern Lights Distributors, LLC, member FINRA/SIPC.  Northern Lights Distributors, LLC and Ballast Management are not affiliated.  7456-NLD-11/30/2020

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SOURCE Ballast Asset Management