MorningStar Overall Rating and Ranking™
Ultimately, the HCM Dividend Sector Plus Fund seeks long-term capital appreciation. By using the proprietary HCM Buy-Line® investment model, the fund seeks capital preservation during times of market distress. The model uses trend analysis to identify broad market trends. The fund uses these trends to decide when to move away from securities and into cash and cash equivalents. During positive market trends, the fund will seek growth in dividend-paying securities among those included in the S&P 500. The HCM Dividend Sector Plus Fund offers two share classes, each with a different investment need in mind.Download Fund Fact Sheet
Principal Investment Strategies
The Fund seeks long-term capital appreciation.
The Fund seeks to achieve its investment objective through investments in: (i) dividend paying equity securities of companies included in the S&P 500; (ii) “plus” other investment companies (mutual funds, closed-end funds and ETFs), including investment companies that use leverage; and (iii) cash and cash equivalents and put options. Unlike typical dividend funds, the Fund may use leverage through investment companies that use leverage and may also leverage up to 33 1/3% of the Fund’s net assets using a line of credit to purchase equities.
The Advisor seeks to invest in companies in the S&P that are paying the highest dividend yields in each of the 10 major S&P 500 industry sectors.
The Advisor uses the HCM–BuyLine® (“Buyline”), its proprietary quantitative investment model, to determine when the Fund should be in or out of the market. The HCM–BuyLine® uses trend analysis to help identify the broad trend in the equity market. When the trend is down, the Advisor starts to reduce the Fund’s exposure to equities, and, when the trend is up, the Advisor increases the Fund’s exposure to equities. A number of indicators comprise the HCM-BuyLine®, with the ratio of new highs to new lows over different time horizons having the heaviest weight. The Advisor uses its discretion to determine how much the Fund will be in or out of the market, it will invest in cash and cash equivalents and/or put options to hedge the portfolio’s equity securities and to reduce volatility. Put options generally have an inverse relationship to the underlying security on which the option is held. When the Fund is in the market, tit will invest in equity securities. The Fund may be invested from 0-100% in cash and cash equivalents and/or put options and 0-100% in equities depending on the strength of the trend identified by the HCM-BuyLine®.
Vance has offered professional money management through Howard Capital Management, Inc. since 1999. He specializes in research, development, and implementation of various types of trading systems. After years of research, he developed a disciplined, systematic, and non-emotional method of investing that is designed with the goal of protecting our clients' assets during market declines. Vance proactively manages all the Funds.
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