Fund Evaluator:

Redwood Systematic Macro Trnd (SMarT) I Overview

Redwood Systematic Macro Trnd (SMarT) I (RWSIX) is an actively managed Allocation Tactical Allocation fund. Redwood Investment Management, LLC launched the fund in 2017.

The investment seeks to generate capital appreciation while focusing on managing downside risk. Utilizing a quantitative and tactical approach, the fund implements an investment strategy that seeks to hold a diversified portfolio of securities, ETFs, open-end investment companies and/or closed-end investment companies, including tender offer and interval funds within any of the following asset classes when, in the view of the Adviser, various risk measurements show the potential to produce positive returns: domestic and international small-cap equities; growth and income equities; preferred securities; convertible bonds; high yield bonds and leveraged loans.

About Redwood Systematic Macro Trnd (SMarT) I (RWSIX)

There are 3 members of the management team with an average tenure of 8.75 years: Michael Cheung (2017), Michael Messinger (2017), Richard Duff (2017). Management tenure is more important for actively managed funds than passive index funds.

The fund has 3 primary benchmarks: S&P 500 Equal Weighted TR USD index with a weighting of 100%, Bloomberg Global Aggregate TR USD index with a weighting of 60% and S&P 500 (TR) (1970) index with a weighting of 40%. Redwood Systematic Macro Trnd (SMarT) I has 67 securities in its portfolio. The top 10 holdings constitute 76.7% of the fund’s assets. The fund meets the SEC requirement of being classified as a diversified fund. The fund is not considered to have an ESG focus with its investment selection and management.

Redwood Systematic Macro Trnd (SMarT) I is part of the Allocation global asset class and is within the Allocation fund group. Redwood Systematic Macro Trnd (SMarT) I has 49.9% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 36.5%. There is 49.8% allocated to foreign stock, and 0.0% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 7.5% (7.5% domestic bond, 0.0% foreign bond and 0.0% convertible bond). Redwood Systematic Macro Trnd (SMarT) I has 12.6% of the portfolio in cash.

Assets Under Management

The fund has $116 million in total assets, which is below the $222 million average for the Tactical Allocation category. Normally, lower assets under management translates to higher average expense ratios, and greater total assets are desired. However, for some investment categories, such as small-cap investing, it may be difficult for the manager to fully employ the desired active strategy if assets grow too large or too quickly.

RWSIX Performance and Fees

The expense ratio measures how much of a fund’s assets are used for administrative expenses and operating expenses, including adviser fees and fees for the transfer agent and custodial services. The Redwood Systematic Macro Trnd (SMarT) I expense ratio is high compared to funds in the Tactical Allocation category. Redwood Systematic Macro Trnd (SMarT) I has an expense ratio of 1.24%, which is 30% lower than its category average, making the fund expense ratio grade a B. While it is difficult to predict returns, it is known that high annual expense ratios reduce your rate of return, and excessive fees are difficult to overcome. Active management normally comes with higher expense ratios than passive index management. Certain investment categories such as small company and foreign also normally have higher expense ratios. It is best to compare fund expense ratios against the category averages for meaningful assessments.

High portfolio turnover can translate to higher expenses and lower aftertax returns. Redwood Systematic Macro Trnd (SMarT) I has a portfolio turnover rate of 134%, indicating that holds its assets around 0.0 years. By way of comparison, the average portfolio turnover is 196% for the Tactical Allocation category.

Recently, in the month of July 2026, Redwood Systematic Macro Trnd (SMarT) I returned 2.1%, which earned it a grade of A, as the Tactical Allocation category had an average return of -0.9%. The letter grades of A, B, C, D and F are based upon relative rankings within the investment category. A grade of A, for example, would indicate that the return is in the highest 20% for that time period compared to all funds in that category.

Redwood Systematic Macro Trnd (SMarT) I has a trailing yield of 4.12%, which is above the 2.86% category average.

It’s natural to seek the best-performing investments, but you must consider the relationship between risk and return and the impact of costs and taxes on your realized returns.

Redwood Systematic Macro Trnd (SMarT) I Grades

Year to date, the fund has returned 9.4%, 1.1 percentage points better than the category, which translates into a grade of B. The fund has returned 16.1% over the past year (grade of C), 4.5% over the past three years (grade of F) and 4.1% per year over the past five years (grade of D).

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