The ultimate goal of the HCM Dynamic Income Fund is to seek total return. The Fund uses the HCM-BuyLine®, proprietary quantitative model, to determine when the Fund should be in or out of fixed income securities. Using a quantitative approach, the Fund aims to meet the investment objective by investing in long and/or short positions in fixed income securities.
Download Fund Fact Sheet*HCM Dynamic Income investments as of 8/31/2023
| Ticker | Name | Weight |
|---|---|---|
| CWB | SPDR Bloomberg Convertible Securities ETF | 19.24% |
| JNK | SPDR Bloomberg High Yield Bond ETF | 18.47% |
| HYG | iShares iBoxx High Yield Corporate Bond ETF | 16.47% |
| ICVT | iShares Convertible Bond ETF | 14.85% |
| LQD | iShares iBoxx $ Investment Grade Corporate Bond ETF | 12.74% |
| EMB | iShares JP Morgan USD Emerging Markets Bond ETF | 10.79% | HCMBBHMM | HCM BBH SWEEP | 5.04% |
| BIL | SPDR Bloomberg 1-3 Month T-Bill ETF | 2.58% |
| Liabilities in Excess of Other Assets | -0.18% |
Portfolio holdings are subject to change at any time and should not be considered investment advice.
Principal Investment Strategies
The Fund seeks to achieve its investment objective through investments in long and/or short positions in fixed income securities. The Fund defines fixed income securities as (i) bills, (ii) notes, (iii) structured notes, (iv) bonds, (v) convertible bonds, or (vi) any other debt or debt-related securities, whether issued by U.S. or non-U.S. governments, U.S. or non-U.S. agencies or instrumentalities, or corporate entities, and having fixed, variable, floating or inverse floating rates.
The Adviser uses the HCM-BuyLine® to determine when the Fund should be in or out of fixed income securities. The HCM-BuyLine® uses trend analysis to identify the broad trend in the fixed income market and which fixed income security is currently favored by the market. When the trend is up, the Adviser increases the Fund’s exposure to fixed income. When the trend is down, the Adviser starts to reduce the Fund’s exposure to fixed income. When the Fund is out of the fixed income security market, it invests in (i) put options to hedge the portfolio’s fixed income securities and reduce volatility, (ii) equity index futures, and/or (iii) cash and cash equivalents.
The Adviser maintains the ability to invest a large percentage of the Fund’s holdings in one asset class of the market. The overall asset allocation of the Fund is not fixed. It changes dynamically as the Adviser decides to buy and sell any holding of the portfolio in response to changes in the model’s quantitative measures as a means to take advantage of changes in U.S. and global market trends. The Adviser may engage in frequent buying and selling of the portfolio securities to achieve the Fund’s objective.
Risk Disclosure
Mutual funds involve risks including the possible loss of principal.
Portfolio Manager
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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