Ultimately, the HCM Dividend Sector Plus Fund seeks long-term capital appreciation. By using the proprietary HCM Buy-Line® investment model, the fund seeks to mitigate loss 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
*HCM Dividend Sector Plus investments as of 3/31/2023
|QLD||ProShares Ultra QQQ||23.06%|
|VYM||Vanguard High Dividend Yield ETF||21.48%|
|SSO||ProShares Ultra S&P500||20.14%|
|HCMBBHMM||HCM BBH SWEEP||15.02%|
|VIG||Vanguard Dividend Appreciation ETF||7.00%|
|USD-CASH||US DOLLAR BROKER||0.60%|
|DXC||DXC Technology Company||0.27%|
|LUMN||Lumen Technologies, Inc.||0.27%|
|LUV||Southwest Airlines Company||0.26%|
|Other Assets Less Liabilities||11.60%|
Portfolio holdings are subject to change at any time and should not be considered investment advice.
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®.
*The use of leverage can accelerate the velocity of potential losses.
Mutual funds involve risks including the possible loss of principal.
The Advisor the reliance on its strategy and judgments about the attractiveness, value and potential appreciation of particular securities and the tactical allocation among the Fund’s investments may prove to be incorrect and may not produce the desired results. The adviser’s investment model carries a risk that the mathematical model used might be based on one or more incorrect assumptions. No assurance can be given that the Fund will be successful under all or any market conditions.
When the Fund is out of the market and in cash or cash equivalents, there is a risk that the market will begin to rise rapidly and may cause the Fund to miss capturing the initial returns of changing market conditions. The mutual funds in which the Fund may invest may use leverage. Using leverage can magnify a mutual fund’s potential for gain or loss and therefore, amplify the effects of market volatility on a mutual fund’s share price. The Fund may be subject to the risk that its assets are invested in a particular sector or group of sectors in the economy and as a result, the value of the Fund may be adversely impacted by events or developments in a sector or group of sectors.
The price of small or medium capitalization company stocks may be subject to more abrupt or erratic market movements than larger, more established companies or the market averages in general. A higher portfolio turnover will result in higher transactional and brokerage costs and may result in higher taxes when Fund shares are held in a taxable account. ETFs and mutual funds are subject to investment advisory and other expenses, which will be indirectly paid by the Fund and increase the cost of investing. When the Fund purchases a put option on a security or index it may lose the premium paid.
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 quantitative method of investing that is designed with the goal of mitigating loss during market declines. Vance proactively manages all the Funds.
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