Investment Solutions2022-02-25T10:05:28-07:00

Fixed Income Strategies

At Shelton Capital Management we actively manage fixed income portfolios which seek to generate total investment return and income, focused on the US high-yield and investment grade taxable and tax-exempt bond markets.

We employ a thorough top-down and bottom-up research approach. We believe that actively managing fixed income today requires us to have soundly developed views of economic and business cycles as well as interest rate and credit cycles. Our unique approach to portfolio construction aims to generate differentiated above-market returns that are uncorrelated to market benchmarks.

We are also skilled in ESG and impact investing in the US fixed income markets and believe utilizing ESG factors in fixed income investing is likely to generate unique uncorrelated returns and may help create desired social impact objectives.

Learn more about our funds and strategies that consider environmental and impact investing approaches.

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Shelton Tactical Credit Fund

Fund Objective

Seeks to achieve current income and capital appreciation.

Strategy Highlights

  • The Fund is managed as a total return fund, employing a “credit long/short” investment strategy.
  • The Fund employs an opportunistic relative-value credit strategy focused on a portfolio of credit-related instruments, including U.S. high yield and investment grade municipal and corporate bonds.
  • The Fund marries a top-down macro thesis with bottom-up fundamental research including relative value, event driven, special situation and arbitrage opportunities.
  • To the extent the Fund invests in tax-exempt municipal bonds, the Strategy may generate tax-advantaged income.

Overall Morningstar RatingTM

star star star star   DEBIX

Shelton Tactical Fund (DEBIX) received an Overall Morningstar RatingTM of 4 stars among 294 Nontraditional Bond funds, based on risk-adjusted returns, as of 12/31/2021. Important Information for Morningstar® Rating

Fund Information

Portfolio Management Team

Resources

Documents PDF Zip
Prospectus pdf DL  
Annual Report pdf DL  
Statement of Additional Information pdf DL  
Semi-Annual Report pdf DL  

Important Information

It is possible to lose money by investing in the Fund. Past performance does not guarantee future results.

The Fund invests without restriction as to issuer capitalization, country, credit quality and without restriction as to the maturity of fixed income securities. The Fund generally will take long positions in securities believed to be undervalued and short positions in securities believed to be overvalued. The Fund typically employs derivatives for hedging purposes, such as futures contracts, options, credit-default swaps, and total return swaps.

The risk for loss on short selling is greater than the original value of the securities sold short, and theoretically is unlimited, because the price of the borrowed security may rise, thereby increasing the price at which the security must be purchased. Although the Fund intends to use derivatives to reduce risk, they may have the opposite effect and increase the volatility or magnitude of loss by the Fund. Derivatives may be illiquid and subject to the risk of default by a counter-party. The value of the Fund’s investments in fixed income securities will fluctuate with changes in interest rates. Typically, a rise in interest rates causes a decline in the value of fixed income securities. The Fund may invest in non-investment grade fixed income securities, sometimes known as “high-yield bonds” or “junk bonds,” which may subject the Fund to greater credit risk, price volatility and risk of loss than investment grade securities. Some of the “junk bonds” may include securities issued by distressed companies experiencing acquisition, merger, spinoff, restructuring, bankruptcy, downgrade, delinquency, default, or relatively poor financial performance. Distressed securities are speculative and involve substantial risks in addition to the risks of investing in junk bonds, including potential loss of the Fund’s entire investment.

Investors should consider the Fund’s investment objectives, risks, charges and expenses carefully before investing. The prospectus contains this and other information about the Fund. To obtain a prospectus, visit www.sheltoncap2b.wpengine.com or call (800) 955-9988. A prospectus should be read carefully before investing.

Shelton Tactical Credit Fund is distributed by RFS Partners, a member of FINRA and affiliate of Shelton Capital Management.

INVESTMENTS ARE NOT FDIC INSURED OR BANK GUARANTEED AND MAY LOSE VALUE.

Customized Portfolios

Shelton Capital Management has been managing fixed income portfolios since the company was founded in 1985. 

The fixed income portfolio team is comprised of Bill Mock, David Falk, Jeffrey Rosenkranz and Chris Walsh. Our team has a combined experience of 100+ years throughout all fixed income asset classes and investing markets over the past 25+ years. We have managed all sectors of our core fixed income asset classes across several credit and economic cycles. 

Overview

  • We actively manage bond portfolios based on a range of risk tolerances, income objectives and tax considerations.
  • Our portfolio management team continuously monitors risk and return characteristics across portfolio holdings.
  • ESG and Impact considerations can be included as part of a portfolio’s overall strategy objectives.

Portfolio Construction Process

  • We employ a thorough top-down and bottom-up research approach.
  • Our unique approach to portfolio construction is expected to generate differentiated above-market returns that are uncorrelated to market benchmarks.

Strategy Information

Management Team

Important Information

When comparing mutual funds to SMAs one should carefully consider the fees and expenses associated with each type of investment. All investments carry a certain degree of risk, including the possible loss of principal and there are specific risks that apply to each investment strategy. There is no assurance that an investment will provide positive performance over any period of time. There are management fees and other charges associated with the Shelton Separately Managed Account programs. Prospective clients should consult their financial advisor about investment strategies that are appropriate for their investment objectives, risk tolerance, tax status and liquidity needs. Income may be subject to the alternative minimum tax (AMT) and/or state and local taxes, based on the state of residence.

Option Strategies

Strategies for clients’ seeking to manage risk and generate cash flow with options. Potential to profit from trading underlying securities through puts and covered calls.

Shelton Equity Income Strategy

The Shelton Equity Income Strategy serves as a “core equity” strategy within your overall asset allocation program. Our flexibility for your clients’ preferences will help you deliver the personalization your client is seeking.

We seek to increase cash flow and reduce overall volatility by building a portfolio of carefully selected US stocks and writing calls on the stocks held in the portfolio. This process is generally referred to as “selling covered calls.”

Strategy Information

In The News

Article: FA-mag.com: Putting on the Calls

 Article: WealthManagement.com: The Flight of the Condor

By clicking the above links, you’ll leave this site and go to a third-party website. Shelton Capital Management does not control the content or privacy practices of the other website and does not endorse or accept responsibility for the content, policies, activities, products or services offered on the site. It should not be considered investment advice. The information provided does not provide information reasonably sufficient upon which to base an investment decision and should not be considered a recommendation to purchase or sell any particular security.

Process

Our team selects a diversified portfolio of large cap blue-chip equities, all of which are selected based on in-depth fundamental analysis. Portfolio sector weightings are designed to be similar to those of the S&P 500, to avoid sector concentrations. On these carefully selected US stocks, we seek to fully write the portfolio to reduce overall volatility while adding incremental cash flow. The number of stocks may range between 30 and 50 depending on the size of the portfolio.

Distilling the Equity Universe
equity funnel 500 chev We start with the S&P 500, a universe of widely held large-cap US stocks in the industrial, transportation, utility, and financial sectors which are selected by the S&P Index Committee, a team of analysts and economists at Standard & Poor’s.
equity funnel 100 chev Applying fundamental analysis, stocks are ranked using third-party research, which include factors such as the 10-year trend of relative earnings and prices, recent earnings, price changes and earnings surprises.
equity funnel 40 60 Chev Using an additional fundamental screen, stocks are filtered by a variety of criteria, including free cash flow yield and price to sales ratios. The highest ranking equities are then selected in each of 11 sectors to closely replicate the sector weightings of the S&P 500 Index. The Portfolio Manager has a preference for large-cap stocks with attractive dividend yields.
equity funnel 30 chev Finally, we identify and purchase roughly 30 equities which we believe have the most over-priced call options. We strategically write (sell) those covered calls two to six times per year to generate cash flow in addition to the portfolio’s dividend yield.

Benefits

  • 5-7% cash flow, not including the portfolio’s dividend yield
  • Diversified portfolio allocation seeking to generate cash flow
  • Reduce portfolio volatility while also retaining potential for limited capital appreciation
  • Comprehensive reporting
  • Access to the Portfolio Management team

Considerations

  • A covered call strategy limits upside potential for stock appreciation and is likely to therefore underperform in strong markets.
  • A covered call does not protect a stock from downside risk. The loss for the investor on each position could be the current price of a stock less the premium received for the call option.
  • Withdrawals (such as systematic withdrawals as part of an income strategy) may result in a declining portfolio value over time.
  • All investments involve risk including the possible loss of principal. There can be no assurance the strategy will achieve its investment objective.
  • If securities are called away, substantial capital gain tax could be incurred.
  • The sale of stock will produce tax consequences for U.S. taxpayers. Each option transaction also produces a tax consequence. You should discuss with your personal tax advisor how the options transactions and any sales of underlying stock will affect your tax situation. Shelton Capital Management does not provide tax advice.

Management Team

FAQs

Can clients avoid purchases of individual stocks they don’t want to own in Shelton Equity Income Strategy?2019-06-27T16:48:43-06:00

Yes. Some investors don’t want to add further concentration of stocks they may already own elsewhere in their portfolios. Others prefer to avoid stocks that don’t fit socially conscious or other criteria. We honor these requests.

What are the main risk factors in option overlay strategies?2019-08-28T13:20:07-06:00

Compared to owning the underlying securities outright (without overlay), Covered Call Writing may limit upside potential for securities appreciation. If securities are called away, substantial capital gain tax could be incurred. Option overlay strategies do not protect a security from downside risk. Investors could lose up to the full current price of underlying securities, less option premiums received.

What happens if one or more of the positions are “called away”?2019-08-30T10:22:20-06:00

The proceeds are reinvested into a replacement security as determined by the Portfolio Manager.

Can clients transfer stocks they already own into Shelton Equity Income Strategy?2019-06-27T16:30:11-06:00

Yes, if Shelton Capital believes these stocks fit the objectives of the strategy and provide option-writing opportunities, existing positions can be transferred to a strategy.

Important Information

Options involve risk and are not suitable for everyone. Prior to buying or selling an option, your client must receive a copy of characteristics and risks of standardized options. Copies of this document may be obtained from any exchange on which options are traded or by contacting The Options Clearing Corporation, One North Wacker Dr., Suite 500, Chicago, IL 60606 (1-800-678-4667).

Any strategies discussed, including examples using actual securities’ price data, are strictly for illustrative and educational purposes only and are not to be construed as an endorsement or recommendation to buy or sell securities. You should review transaction costs, margin requirements and tax considerations with a tax advisor before entering into any option strategies. There are management fees and other charges associated with the Shelton Separately Managed Account programs.

Shelton Covered ETF Portfolio Strategy

The Shelton Covered ETF Portfolios are designed for investors who are looking for a portfolio solution with a fully diversified portfolio representation using a comprehensive mix of ETFs.

Shelton Covered ETF

Download Fact Sheet

Process

Allocation Evaluation Opportunities Risk & Return
Shelton Capital allocates based on efficient frontier analysis and offers three asset allocation models to choose from based on a client’s time frame, risk tolerance and cash flow criteria. Each model has full asset class representation offered by today’s ETF providers such as iShares, State Street, and Vanguard. The models are carefully constructed and monitored to stay current in today’s market. We then evaluate and select the best ETF for each asset class in the portfolio. The selection is based on key attributes such as liquidity, expense ratio, and availability of an options market. We will continue to evaluate each holding to ensure we have the best representation for that asset class. Combining years of options trading expertise with the latest options valuation technology, we identify the most favorable call writing opportunities and sell the calls on most, if not all, ETF positions. A cash flow stream is generated through the call option premiums collected plus any dividends the underlying ETF may be paying. We continue to monitor risk and return characteristics for the open positions. As options expire, new options are evaluated and sold as we seek additional premiums to meet the cash flow target.

Portfolio Options

Conservative: This Strategy provides a portfolio that seeks to have lower volatility in relation to the overall market (as measured by the S&P 500) for investors that seek moderate growth. We seek to manage the Strategy so that over long periods of time, the strategy should have less volatility than the overall equity market. With lower anticipated volatility, this approach carries relatively lower risk and seeks to provide a moderate level current cash flow yield.  This Strategy is appropriate for investors with a long-term time horizon.

Balanced: This Strategy provides a portfolio that seeks to have a higher level of volatility than our Conservative Strategy for investors who are more comfortable with risk, seek capital growth and a higher current cash-flow yield in relation to our Conservative Strategy.  We seek to manage the Strategy so that over long periods of time, the Strategy should have lower volatility in relation to the overall market (as measured by the S&P 500).  With its anticipated higher volatility relative to the Conservative Strategy, this approach carries relatively higher risk and is expected to provide a higher level current cash flow yield. This Strategy is appropriate for investors with a long-term time horizon.

Growth: This Strategy provides a portfolio that seeks to have a higher level of volatility than our Balanced Strategy for investors who are comfortable with risk, seek capital growth and a higher current cash-flow yield in relation to our Balanced Strategy.  We seek to manage the strategy so that over long periods of time, the strategy should have lower volatility in relation to the overall market (as measured by the S&P 500).  With its anticipated higher volatility relative to the Balanced Strategy, this approach carries relatively higher risk and is expected to provide the highest level of current cash flow yield of any of Covered ETF portfolios. This Strategy is appropriate for investors with a long-term time horizon.

Benefits

  • Provide Investors an ETF strategy that combines aspects of both passive and active management.
  • Seeks to achieve market returns similar to the Dow Jones Moderately Conservative Portfolio Index by investing in a portfolio of exchange traded funds (ETFs) while utilizing a covered call writing strategy to generate cash flow.
  • Available in three different risk/return parameters agreed upon to by the client (Conservative, Balanced and Growth).

Considerations and Risks

  • A covered call strategy limits upside potential for security appreciation and is likely to, therefore, underperform in strong markets.
  • A covered call does not protect a security from downside risk. The loss for the investor on each position could be the current price of a security less the premium received for the call option.
  • Withdrawals (such as systematic withdrawals as part of an income strategy) may result in a declining portfolio value over time.
  • All investments involve risk including the possible loss of principal. There can be no assurance the strategy will achieve its investment objective.
  • The sale of stock will produce tax consequences for U.S. taxpayers. Each option transaction also produces a tax consequence. You should discuss with your personal tax advisor how the options transactions and any sales of underlying stock will affect your tax situation. Shelton Capital Management does not provide tax advice.

Management Team

FAQs

What happens if one or more of the positions are “called away”?2019-08-30T10:23:44-06:00

The proceeds are reinvested into a replacement security as determined by the Portfolio Manager.

What are the main risk factors in option overlay strategies?2019-08-30T10:24:32-06:00

Compared to owning the underlying securities outright (without overlay), Covered Call Writing may limit upside potential for securities appreciation. If securities are called away, substantial capital gain tax could be incurred. Option Overlay Strategies do not protect a security from downside risk. Investors could lose up to the full current price of underlying securities, less option premiums received.

Which portfolio is right for me?2019-06-27T16:58:12-06:00

The process of matching your investment goals and personal profile with an asset allocation mix is based primarily on risk tolerance, time horizon, and other factors. While some clients establish their investment objectives and guidelines on their own, consulting with an advisor may be beneficial to identify the most suitable model portfolio for best results.

Important Information

Options involve risk and are not suitable for everyone. Prior to buying or selling an option, your client must receive a copy of characteristics and risks of standardized options. Copies of this document may be obtained from any exchange on which options are traded or by contacting The Options Clearing Corporation, One North Wacker Dr., Suite 500, Chicago, IL 60606 (1-800-678-4667).

Any strategies discussed, including examples using actual securities’ price data, are strictly for illustrative and educational purposes only and are not to be construed as an endorsement or recommendation to buy or sell securities. You should review transaction costs, margin requirements and tax considerations with a tax advisor before entering into any options strategy. There are management fees and other charges associated with the Shelton Separately Managed Account programs.

Shelton Option Overlay Strategy

The Shelton Option Overlay Strategy is designed to implement an Option Overlay on a large concentrated single-stock position that a client is comfortable selling at a specific target price. With a customizable risk/return trade off, we seek to make existing assets more productive. We monitor existing and potential option positions for the most advantageous option given the clients risk/return objectives and the current asset’s characteristics. The strategy’s goal is to enhance returns above the stand alone performance of the stock by 2-6% annually depending on the underlying stock.

Strategy Information

Shelton Option Overlay

Download Fact Sheet

Process

Investors holding one or more concentrated stock positions should consider the Shelton Option Overlay Strategy if they are looking to:

  • Generate cash flow
  • Reduce risk
  • Maximize liquidation value

Advisors can also use Shelton Option Overlay Strategy to seek potential current cash flow from a concentrated stock position while enabling a gradual, planned reduction in stock concentration over time, helping the assets move into a more diversified managed portfolio.

No investment strategy is without risk. Upside potential is limited, the estimated cash flow target may not be met, and a change in the Target Price may require additional shares or cash.

The Option Overlay makes such assets visible to the advisor and gives the advisor a continuing role in monitoring their place in the client’s overall net worth.

Benefits

  • With a customizable risk/ return trade-off, the client has the potential to enhance cash flow by as much as 2-6% depending on the particular stock making the holding more productive.
  • Shelton Capital applies our expertise and options valuation technology to identify the most favorable call writing opportunities based on client objectives.

Considerations

  • The Shelton Option Overlay Strategy involves selling potential upside return on a stock for current cash flow in the form of option premium. While the strategy has the potential to improve cash flow produced on a stock position, the primary strategy of selling covered calls limits the potential upside performance of the shares that have been covered by the options sold.
  • This strategy does not protect a stock from downside risk. The loss for the investor on each cash position could be the current price of a stock less the premium received for the call option.
  • If securities are called away, substantial capital gain tax could be incurred.
  • The sale of stock will produce tax consequences for U.S. taxpayers. Each option transaction also produces a tax consequence. You should discuss with your personal tax advisor how the options transactions and any sales of underlying stock will affect your tax situation. Shelton Capital Management does not provide tax advice.
  • The Target Price is an estimate of the upside potential using our Shelton Option Overlay Strategy. There is no guarantee that this value can be realized.
  • All investments involve risk including the possible loss of principal. There can be no assurance the strategy will achieve its investment objective.

Management Team

FAQs

What if the client wants to exit the strategy?2019-06-27T15:47:45-06:00

The ability to exit the strategy is always available but may have a negative financial consequence. If the client chooses to exit the strategy, we would have to repurchase the outstanding calls and this cost will vary, depending upon a multiple of factors.

What happens if an early assignment occurs?2019-08-28T15:56:44-06:00

There have been occurrences of early assignment. At the time of an early assignment, you are required to surrender shares of the stock. It is the responsibility of the client to report the appropriate tax lot of the sale to the IRS.

Are the projected annual cash flows or the target price guaranteed?2019-08-16T16:22:35-06:00

No. They are projections, which depend upon many assumptions, including stock price, implied volatility and interest rates.

Important Information

Options involve risk and are not suitable for everyone. Prior to buying or selling an option, your client must receive a copy of characteristics and risks of standardized options. Copies of this document may be obtained from any exchange on which options are traded or by contacting The Options Clearing Corporation, One North Wacker Dr., Suite 500, Chicago, IL 60606 (1-800-678-4667).

Any strategies discussed, including examples using actual securities’ price data, are strictly for illustrative and educational purposes only and are not to be construed as an endorsement or recommendation to buy or sell securities. You should review transaction costs, margin requirements and tax considerations with a tax advisor before entering into any options strategy. There are management fees and other charges associated with the Shelton Separately Managed Account programs.

Shelton Equity Income Fund

The Fund’s objective is to achieve a high level of income and capital appreciation (when consistent with high income) by investing primarily in income producing U.S. equity securities.

Morningstar RatingTM

starstarstarstarstar   EQTIX

Shelton Equity Income Fund (EQTIX) received an Overall Morningstar RatingTM of 5 stars among 65 Derivative Income funds, based on risk-adjusted returns, as of 3/31/2022. Important Information for Morningstar® Rating

Fund Information

Screen Shot 2019 11 29 at 6.10.27 PM 1

 Download: Fact Sheet

Ticker: EQTIX

Benchmarks:
CBOE Buywrite Index
S&P Citigroup Value Index

Resources

Documents PDF Zip
Prospectus pdf DL
Annual Report pdf DL
Statement of Additional Information pdf DL
Semi-Annual Report pdf DL

Important Information

Fund information is not intended to represent future portfolio composition. Portfolio holdings are subject to change and should not be considered a recommendation to buy individual securities. The Fund is subject to several risks, any of which could cause the Fund to lose money. These risks, which are described more fully in the prospectus, include stock market risk, economic and political events risks, sector risks, large and medium sized company risks and value investing risks.

Investors should consider a fund’s investment objectives, risks, charges and expenses carefully before investing. The prospectus contains this and other information about the fund. To obtain a prospectus, visit www.sheltoncap.com or call (800) 955-9988. A prospectus should be read carefully before investing.

Shelton Funds are distributed by RFS Partners, a member of FINRA and affiliate of Shelton Capital Management.

Effective on May 19, 2021, the fund changed its name from Shelton Core Value Fund to Shelton Equity Income Fund.

INVESTMENTS ARE NOT FDIC INSURED OR BANK GUARANTEED AND MAY LOSE VALUE.

Covered Call Writing Basics

Understand the basics behind enhancing portfolio returns under certain market conditions.

Overview

Generally, investors that own a widely held, publicly-traded security can choose to write a covered call against the position as long as an options market exists for that stock.

A call is a listed option that gives the buyer the right (without obligation) to buy the underlying shares at a stated “strike price” on or before the option’s maturity date.

The seller (“writer”) of a call receives a cash premium when the option is sold and has the obligation to sell shares at the strike price, at any time on or before maturity. Each premium generates cash flow for the seller.

When the seller owns the underlying security against which the option is written, the sale is a covered call write, which is considered a hedged transaction because the seller is “long” the security and “short” the option. If the security’s price exceeds the strike price and is called away, the covered writer can deliver the long position at little or no loss or out-of-pocket cost. However, the writer sacrifices any price gains above the strike price.

Our sophisticated professionals have the specialized knowledge and experience to:

  • Know when options are attractively priced, relative to their value
  • Choose the best strike prices for pursuing a personal investment objective
  • Trade or “roll” options before maturity, to maximize their “time decay” value
  • Manage to avoid portfolio disruption and adverse tax consequences

A disciplined Covered Call Writing Strategy is designed in consultation with the client’s advisor who clearly understands the client’s objectives allowing for a customized solution. The Strategy is then professionally implemented, day-to-day, by Shelton Capital Management, focusing on analyzing the options market and executing options trades on a timely, cost-efficient basis.

Example

An investor owns 500 shares of Exxon Mobil common stock (XOM) when it is trading at $71 per share. The investor sells five call options on XOM at a premium of $3 per share and a strike price of $75. The investor will receive $1,500 in cash (500 shares X $3 premium) when the transaction is made and participate in any price gains up to $75.

But if the stock goes higher before the option’s maturity date, appreciation above $75 is lost. The investor must either: 1) give up the stock at $75 or: 2) pay the difference between the $75 strike price and the market price per share at maturity.

International Strategies

In an expanding global marketplace, high-quality companies and investment opportunities are scattered far across the world. Shelton Capital Management finds those opportunities and offers U.S investors international exposure in a concentrated portfolio through the Shelton International Select Equity Fund, separately managed accounts (SMAs) and the Shelton Emerging Markets Fund.

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Shelton International Select Equity Fund

The Shelton International Select Equity Fund seeks to achieve long-term capital appreciation. This strategy provides international exposure and an investment opportunity categorized by Morningstar® as a foreign large blend.

Morningstar RatingTM

star star star star star   SISEX

Shelton International Select Equity Fund (SISEX, SISLX) received an Overall Morningstar RatingTM of 5 stars in the Foreign Large Blend category as of 3/31/2020. Important Information for Morningstar® Rating

In The News

Press Release: Shelton International Receives 5 Star Morningstar Rating

Article: Pensions and Investments: Reject the Classification Crunch

Podcast: (July 6,2018) Andrew Manton interviewed by Charlie Wright on Strategic Investor Radio: Our proprietary approach to international company selection

By clicking the article link to Pensions and Investments online, you’ll leave this site and go to a third-party website. Shelton Capital Management does not control the content or privacy practices of the other website and does not endorse or accept responsibility for the content, policies, activities, products or services offered on the site. It should not be considered investment advice. The information provided does not provide information reasonably sufficient upon which to base an investment decision and should not be considered a recommendation to purchase or sell any particular security.

Fund Information

International Commentary Image International Equity Fact Sheet
Download Commentary  Download Fact Sheet: Shelton International Select Equity Fund
Tickers: SISLX, SISEX
Benchmark: MSCI ACWI Ex US

Process

The Fund seeks to achieve long-term capital appreciation by investing in a concentrated portfolio of 30-50 stocks using a proprietary process that seeks to identify companies generating superior and consistent internal returns on capital in order to create shareholder value. The fund invests primarily in mid-to-large cap foreign equity securities.

Central to our approach is the premise that a company generates value for its shareholders by successfully redeploying capital over time. By analyzing a company according to its life cycle stage, we believe that we can most effectively evaluate its risk and return potential, and more accurately forecast the company’s likelihood of generating value for shareholders.

By focusing in on a company’s economic returns and its reinvestment rate, we believe more accurate assumptions can be made about the future generation of cash flows – the basis for a company’s stock price. We incorporate this idea into our investment process from start to finish.

A distinctive approach to international investing —a life cycle approach:

International Lifecycle graphic 1 v2 01

Strategy Benefits

  • “Controlled Growth” international strategy (“foreign large blend” box in Morningstar).
  • Concentrated portfolio (30-50 stocks) with a high active share and relatively lower tracking error.
  • Access to a unique investment process that involves a Corporate Lifecycle perspective.
  • Investment in some of the best-managed companies around the world.
  • Access to fast-growing, developing markets.

Strategy Considerations

  • All investments involve risk including the possible loss of principal. There can be no assurance the strategy will achieve its investment objective.
  • Foreign currency fluctuations can add volatility to foreign equity prices.

Portfolio Management Team

Resources

Documents PDF Zip
Prospectus pdf DL
Annual Report pdf DL
Statement of Additional Information pdf DL
Semi-Annual Report pdf DL
XBRL Files Zip DL

FAQs

Is your process quantitative or fundamental?2020-06-26T08:45:53-06:00

The strategy is primarily fundamental in nature but uses quantitative tools to increase the efficiency of the team’s work flow.   Quantitative models are used to determine which life cycle stage each company is in and the future expected returns. Those returns are then compiled into a ranking system, of which the top 20% is used as a priority list for new investment ideas.  Because most of the quantitative aspect of the process is automated, the team is able to spend the majority of its time dissecting and fundamentally analyzing new ideas from a list of the most promising stocks.

What is unique about the Corporate Lifecycle philosophy and how does it help you find better investing opportunities?2020-06-26T08:46:04-06:00

The team believes that the predominant modes of market segregation (based on sector or geographic preferences) are not useful starting points when thinking about the merits of investing in a company.  Instead, the most beneficial information to an investor is how effective a company has been at generating cash flows as compared to the rest of the market. That effectiveness can be measured and is ultimately a good indicator of where a company lies in its corporate lifecycle.  The team captures this information for every company at the onset of the process, and by focusing on a company’s economic returns and its reinvestment rate, more accurate assumptions can be made about the future generation of cash flows – the basis for a company’s stock price. The international team’s process incorporates this idea in its investment process from start to finish.

What is meant by a “Controlled Growth” strategy?2019-08-23T13:26:13-06:00

The Shelton International Select Equity Strategy is likely a suitable investment strategy for those looking for either a core or growth international strategy.  The team’s lifecycle-based process targets companies with the best opportunity to create shareholder value. This involves traditional “growth” companies along with what may be considered “value” companies that we believe are in the position to improve their competitive capacity, typically done with a management change and/or a major restructuring.  Additionally, the portfolio is managed to take more idiosyncratic risk (stock specific risk) rather than making factor bets (i.e. big differences in sector or region allocation versus the benchmark). This ultimately leads to a higher active share and a lower tracking error.

Important Information

It is possible to lose money by investing in the Fund. Investors should consider a fund’s investment objectives, risks, charges and expenses carefully before investing. The prospectus contains this and other information about the fund. To obtain a prospectus, visit www.sheltoncap.com or call (800) 955-9988. A prospectus should be read carefully before investing.There may be additional risks associated with international investing involving foreign, economic, political, monetary, and/or legal factors.

International investing may not be for everyone. The information contained in this document is given on a general basis without obligation and on the understanding that any person acting upon or in reliance on it, does so entirely at his or her own risk. Any projections or other forward-looking statements regarding future events or performance of countries, markets or companies are not necessarily indicative of, and may differ from, actual events or results. This information is intended to highlight issues and not to be comprehensive or to provide advice.

The MSCI ACWI ex USA is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed (excluding the United States) and emerging markets. Developed market countries include: Australia, Austria, Belgium, Canada, Denmark, Finland, France, Germany, Hong Kong, Ireland, Israel, Italy, Japan, the Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland, and the United Kingdom. Emerging market countries include: Brazil, Chile, China, Colombia, the Czech Republic, Egypt, Greece, Hungary, India, Indonesia, Korea, Malaysia, Mexico, Peru, Philippines, Poland, Qatar, Russia, South Africa, Taiwan, Thailand, Turkey, and the United Arab Emirates. Net total return indexes reinvest dividends after the deduction of withholding taxes, using (for international indexes) a tax rate applicable to non-resident institutional investors who do not benefit from double taxation treaties. It is not possible to invest directly in an index.

Distributed by RFS Partners, a member of FINRA, and affiliate of Shelton Capital Management.
INVESTMENTS ARE NOT FDIC INSURED OR BANK GUARANTEED AND MAY LOSE VALUE.

Shelton Emerging Markets Fund

The Shelton Emerging Markets seeks to achieve long-term capital appreciation. This strategy provides international exposure and an investment opportunity categorized by Morningstar® as a Diversified Emerging Markets fund.

Process

The Fund seeks to achieve long-term capital appreciation by investing in a concentrated portfolio of 30-50 stocks using a proprietary process that seeks to identify companies generating superior and consistent internal returns on capital in order to create shareholder value. The fund invests its assets in equity securities of non-U.S. companies located in countries with emerging markets, but may also invest in companies domiciled in developed markets.

Central to our approach is the premise that a company generates value for its shareholders by successfully redeploying capital over time. By analyzing a company according to its life cycle stage, we believe that we can most effectively evaluate its risk and return potential, and more accurately forecast the company’s likelihood of generating value for shareholders.

By focusing in on a company’s economic returns and its reinvestment rate, we believe more accurate assumptions can be made about the future generation of cash flows – the basis for a company’s stock price. We incorporate this idea into our investment process from start to finish.

A distinctive approach to international investing —a life cycle approach:

International Lifecycle graphic 1 v2 01

Strategy Benefits

  • “Controlled Growth” international strategy (“Diversified Emerging Markets” box in Morningstar).
  • Concentrated portfolio (30-50 stocks) with a high active share and relatively lower tracking error.
  • Access to a unique investment process that involves a Corporate Lifecycle perspective.
  • Investment in some of the best-managed companies around the world.
  • Access to fast-growing, emerging markets.

Strategy Considerations

  • All investments involve risk including the possible loss of principal. There can be no assurance the strategy will achieve its investment objective.
  • Foreign currency fluctuations can add volatility to foreign equity prices.

Portfolio Management Team

Resources

Documents PDF
Prospectus pdf DL
Semi-Annual Report pdf DL

FAQs

What is meant by a “Controlled Growth” strategy?2020-06-26T15:14:02-06:00

The Shelton Emerging Markets Fund is likely a suitable investment strategy for those looking for either a core or growth international strategy. The team’s lifecycle-based process targets companies with the best opportunity to create shareholder value. This involves traditional “growth” companies along with what may be considered “value” companies that we believe are in the position to improve their competitive capacity, typically done with a management change and/or a major restructuring. Additionally, the portfolio is managed to take a more idiosyncratic risk (stock-specific risk) rather than making factor bets (i.e. big differences in sector or region allocation versus the benchmark). This ultimately leads to a higher active share and a lower tracking error.

Is your process quantitative or fundamental?2020-06-26T08:45:53-06:00

The strategy is primarily fundamental in nature but uses quantitative tools to increase the efficiency of the team’s work flow.   Quantitative models are used to determine which life cycle stage each company is in and the future expected returns. Those returns are then compiled into a ranking system, of which the top 20% is used as a priority list for new investment ideas.  Because most of the quantitative aspect of the process is automated, the team is able to spend the majority of its time dissecting and fundamentally analyzing new ideas from a list of the most promising stocks.

What is unique about the Corporate Lifecycle philosophy and how does it help you find better investing opportunities?2020-06-26T08:46:04-06:00

The team believes that the predominant modes of market segregation (based on sector or geographic preferences) are not useful starting points when thinking about the merits of investing in a company.  Instead, the most beneficial information to an investor is how effective a company has been at generating cash flows as compared to the rest of the market. That effectiveness can be measured and is ultimately a good indicator of where a company lies in its corporate lifecycle.  The team captures this information for every company at the onset of the process, and by focusing on a company’s economic returns and its reinvestment rate, more accurate assumptions can be made about the future generation of cash flows – the basis for a company’s stock price. The international team’s process incorporates this idea in its investment process from start to finish.

Important Information

It is possible to lose money by investing in the Fund. Investors should consider a fund’s investment objectives, risks, charges and expenses carefully before investing. The prospectus contains this and other information about the fund. To obtain a prospectus, visit www.sheltoncap.com or call (800) 955-9988. A prospectus should be read carefully before investing.

There may be additional risks associated with international investing involving foreign, economic, political, monetary, and/or legal factors. International investing may not be for everyone. The information contained in this document is given on a general basis without obligation and on the understanding that any person acting upon or in reliance on it, does so entirely at his or her own risk. Any projections or other forward-looking statements regarding future events or performance of countries, markets or companies are not necessarily indicative of, and may differ from, actual events or results. This information is intended to highlight issues and not to be comprehensive or to provide advice.

The MSCI Emerging Markets Index captures large and mid cap representation across 26 Emerging Markets (EM) countries (Argentina, Brazil, Chile, China, Colombia, Czech Republic, Egypt, Greece, Hungary, India, Indonesia, Korea, Malaysia, Mexico, Pakistan, Peru, Philippines, Poland, Qatar, Russia, Saudi Arabia, South Africa, Taiwan, Thailand, Turkey and United Arab Emirates.)

With 1,403 constituents, the index covers approximately 85% of the free float-adjusted market capitalization in each country.
Distributed by RFS Partners, a member of FINRA, and affiliate of Shelton Capital Management.

INVESTMENTS ARE NOT FDIC INSURED OR BANK GUARANTEED AND MAY LOSE VALUE.

Shelton International Select Equity SMA Strategy

The Shelton International Select Equity Portfolio seeks to deliver attractive risk-adjusted returns over time.

In The News

Press Release: Shelton International Receives 5 Star Morningstar Rating

Article: Pensions and Investments: Reject the Classification Crunch

Podcast: (July 6,2018) Andrew Manton interviewed by Charlie Wright on Strategic Investor Radio: Our proprietary approach to international company selection

By clicking the article link to Pensions and Investments online, you’ll leave this site and go to a third-party website. Shelton Capital Management does not control the content or privacy practices of the other website and does not endorse or accept responsibility for the content, policies, activities, products or services offered on the site. It should not be considered investment advice. The information provided does not provide information reasonably sufficient upon which to base an investment decision and should not be considered a recommendation to purchase or sell any particular security.

Strategy Information

International Equity Commentary

Download International Commentary

Please consult with your Director of Advisor Services for access to more information.

Process

The International Equity team at Shelton Capital manages concentrated, high-conviction portfolios of non-US large-cap and mid-cap companies. Shelton Capital Management offers this strategy through SMAs and a mutual fund.

Central to our approach is the premise that a company generates value for its shareholders by successfully redeploying capital over time. By analyzing a company according to its life cycle stage, we believe that we can most effectively evaluate its risk and return potential, and more accurately forecast the company’s likelihood of generating value for shareholders.

International Lifecycle graphic 1 v2 01

By focusing in on a company’s economic returns and its reinvestment rate, more accurate assumptions can be made about the future generation of cash flows – the basis for a company’s stock price. We incorporate this idea into our investment process from start to finish.

Strategy Benefits

  • “Controlled Growth” international strategy (“foreign large blend” box in Morningstar).
  • Concentrated portfolio (30-50 stocks) with a high active share and relatively lower tracking error.
  • Access to a unique investment process that involves a Corporate Lifecycle perspective.
  • Investment in some of the best-managed companies around the world.
  • Access to fast-growing, developing markets.

Strategy Considerations

  • The Shelton International Select Equity SMA Strategy seeks to deliver attractive risk-adjusted returns over time by investing in American Depository Receipts (ADRs).
  • All investments involve risk including the possible loss of principal. There can be no assurance the strategy will achieve its investment objective.
  • Foreign currency fluctuations can add volatility to foreign equity prices.

Portfolio Management Team

FAQs

What is meant by a “Controlled Growth” strategy?2020-06-26T15:14:02-06:00

The Shelton Emerging Markets Fund is likely a suitable investment strategy for those looking for either a core or growth international strategy. The team’s lifecycle-based process targets companies with the best opportunity to create shareholder value. This involves traditional “growth” companies along with what may be considered “value” companies that we believe are in the position to improve their competitive capacity, typically done with a management change and/or a major restructuring. Additionally, the portfolio is managed to take a more idiosyncratic risk (stock-specific risk) rather than making factor bets (i.e. big differences in sector or region allocation versus the benchmark). This ultimately leads to a higher active share and a lower tracking error.

Is your process quantitative or fundamental?2020-06-26T08:45:53-06:00

The strategy is primarily fundamental in nature but uses quantitative tools to increase the efficiency of the team’s work flow.   Quantitative models are used to determine which life cycle stage each company is in and the future expected returns. Those returns are then compiled into a ranking system, of which the top 20% is used as a priority list for new investment ideas.  Because most of the quantitative aspect of the process is automated, the team is able to spend the majority of its time dissecting and fundamentally analyzing new ideas from a list of the most promising stocks.

What is unique about the Corporate Lifecycle philosophy and how does it help you find better investing opportunities?2020-06-26T08:46:04-06:00

The team believes that the predominant modes of market segregation (based on sector or geographic preferences) are not useful starting points when thinking about the merits of investing in a company.  Instead, the most beneficial information to an investor is how effective a company has been at generating cash flows as compared to the rest of the market. That effectiveness can be measured and is ultimately a good indicator of where a company lies in its corporate lifecycle.  The team captures this information for every company at the onset of the process, and by focusing on a company’s economic returns and its reinvestment rate, more accurate assumptions can be made about the future generation of cash flows – the basis for a company’s stock price. The international team’s process incorporates this idea in its investment process from start to finish.

Important Information

It is possible to lose money by investing in the strategy. Past performance does not guarantee future results. There are management fees and other charges associated with the Shelton Separately Managed Account programs. Any strategies discussed, including examples using actual securities’ price data, are strictly for illustrative and educational purposes only and are not to be construed as an endorsement or recommendation to buy or sell securities. You should review transaction costs, margin requirements and tax considerations with a tax advisor before entering into any options strategy. There may be additional risks associated with international investing involving foreign, economic, political, monetary, and/or legal factors. International investing may not be for everyone. The information contained in this document is given on a general basis without obligation and on the understanding that any person acting upon or in reliance on it, does so entirely at his or her own risk. Any projections or other forward-looking statements regarding future events or performance of countries, markets or companies are not necessarily indicative of, and may differ from, actual events or results. This information is intended to highlight issues and not to be comprehensive or to provide advice.

The MSCI ACWI ex USA is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed (excluding the United States) and emerging markets. Developed market countries include: Australia, Austria, Belgium, Canada, Denmark, Finland, France, Germany, Hong Kong, Ireland, Israel, Italy, Japan, the Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland, and the United Kingdom. Emerging market countries include: Brazil, Chile, China, Colombia, the Czech Republic, Egypt, Greece, Hungary, India, Indonesia, Korea, Malaysia, Mexico, Peru, Philippines, Poland, Qatar, Russia, South Africa, Taiwan, Thailand, Turkey, and the United Arab Emirates. Net total return indexes reinvest dividends after the deduction of withholding taxes, using (for international indexes) a tax rate applicable to non-resident institutional investors who do not benefit from double taxation treaties. It is not possible to invest directly in an index.

Distributed by RFS Partners, a member of FINRA, and affiliate of Shelton Capital Management.
INVESTMENTS ARE NOT FDIC INSURED OR BANK GUARANTEED AND MAY LOSE VALUE.

ESG Strategies

At Shelton Capital Management we actively manage investments for clients seeking an environmental, green or sustainable focus.

Equity Solutions:

Fixed Income Allocations:

  • Green California Tax-Free Income Fund (CFNTX)
  • Green Municipal Bond Portfolio Strategies and we can create customized portfolios (Fixed Income SMAs)
    • Specific state options including California or New York

Shelton Green Alpha Fund

Overall Morningstar RatingTM

star star star star star   NEXTX

NEXTX received an Overall Morningstar Rating of 5 stars among 542 Mid-Cap Growth funds, based on the risk-adjusted returns, as of 3/31/2022. Important Information for Morningstar® Rating

Fund Objective

The Fund’s investment objective is to achieve long-term capital appreciation by investing in stocks in the green economy.

Fund At A Glance

          • Identifies a universe of green economy companies based on a set of qualitative criteria that have above average growth potential.
          • A “green economy” company is one which is believed to improve human well-being and increase economic efficiencies, while significantly reducing environmental risks.
          • Seeks companies which provide products and services that help economies adapt to, solve or mitigate the effects of key environmental and economic systemic risks.

Fund Information

Screen Shot 2019 11 15 at 9.17.39 AM                                                            GAcommentary
Download Fact Sheet                                                Download Commentary

Fund Management

Shelton Capital Management is the Fund’s advisor and served as the investment advisor and administrator to the Shelton Funds since 1985.

The sub-advisor for the Shelton Green Alpha Fund is Green Alpha Advisors, LLC.

Resources

Documents PDF Zip
Prospectus pdf DL
Annual Report pdf DL
Statement of Additional Information pdf DL
Semi-Annual Report pdf DL

Important Information

Fund information is not intended to represent future portfolio composition. Portfolio holdings are subject to change and should not be considered a recommendation to buy individual securities. The Fund is subject to several risks, any of which could cause the Fund to lose money. These risks, which are described more fully in the prospectus, include stock market risk, economic and political events risks, sector risks, large and medium sized company risks and value investing risks.

Green Alpha’s environmental focus may limit investment options available to the Fund and may result in lower returns than returns of funds not subject to such investment considerations. There are no assurances that the Fund will achieve its objective and or strategy.  Investing in securities of small and medium sized companies, even indirectly, may involve greater volatility than investment in larger and more established companies.

Investors should consider the Fund’s investment objectives, risks, charges and expenses carefully before investing. The prospectus contains this and other information about the Fund. A prospectus should be read carefully before investing.

Shelton Funds are distributed by RFS Partners, a member of FINRA and affiliate of Shelton Capital Management.

INVESTMENTS ARE NOT FDIC INSURED OR BANK GUARANTEED AND MAY LOSE VALUE.

Green California Tax-Free Income Fund

Fund Objective

The Fund’s investment objective is to seek high current tax-free income for California residents.

Fund At A Glance

  • Seeks to invest in bonds that meet environmental, social and governance screens.
  • The manager uses criteria including, but not limited to, use of bond proceeds, expected environmental impact, source of revenues for repayment and reputation of issuer.
  • Generally, purchases high quality bonds that are believed to have a low default probability
  • Invests in municipal bonds issued by the State of California and produce tax-exempt interest.

This Fund is intended primarily for residents of California. If you are looking for tax-free income and are comfortable with the moderate volatility of a long-term bond fund, this may be the right investment for you.

Fund Information

Portfolio Management Team

Portfolio Manager Bill Mock

Resources

Documents PDF Zip
Prospectus pdf DL
Annual Report pdf DL
Statement of Additional Information pdf DL
Semi-Annual Report pdf DL
XBRL Files Zip DL

Important Information

Fund information is not intended to represent future portfolio composition. Portfolio holdings are subject to change and should not be considered a recommendation to buy individual securities.

The Fund is subject to several risks, any of which could cause the Fund to lose money. These risks, which are described more fully in the prospectus, include interest rate risk, state-specific risk, income risk, call risk, credit risk, and bankruptcy risk.

Investors should consider the Fund’s investment objectives, risks, charges and expenses carefully before investing. The prospectus contains this and other information about the Fund. A prospectus should be read carefully before investing.

Shelton Funds are distributed by RFS Partners, a member of FINRA and affiliate of Shelton Capital Management.

INVESTMENTS ARE NOT FDIC INSURED OR BANK GUARANTEED AND MAY LOSE VALUE.

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