NORWOOD, Mass., Feb. 15, 2017 /PRNewswire/ -- W.E. Donoghue & Co., LLC. (WEDCO), a leader in delivering tactical asset allocation strategies, announces the launch of the Power Momentum Index Fund (Class A: MOJAX, Class I: MOJOX , Class C: MOJCX ). The mutual fund's distinct strategy entails utilizing WEDCO's proprietary Power Momentum Index — one of the financial services industry's first tactical momentum indices — that seeks to generate growth while deploying a tactical overlay in an effort to preserve capital in all market cycles.
"On the heels of advisor demand for a rules based, momentum strategy that focuses on risk adjusted returns, we established a mutual fund that enables investors to have the ability to benefit from the index," said Jeffrey R. Thompson, President, CEO and Portfolio Manager of WEDCO. "For long-term, risk-averse investors who share our conviction that traditional benchmarking is antiquated, this product may offer a more effective way to increase total return."
The Power Momentum Index begins with our proprietary indicators determining whether to be bullish or defensive in a sector. If we are bullish in that sector, we invest in the top 5 Stocks with the highest risk adjusted return as the basis. If defensive in that sector, we invest in 1-3 year treasuries. Lastly, we reconstitute and rebalance the index every quarter. Each of the holdings are derived from the 10 Global Industry Classification Standard (GICS) sectors — consumer discretionary, consumer staples, energy, financial services, healthcare, industrials, materials, utilities, telecommunication services, and information technology — that comprise the S&P 500 Index.
The Fund's strategy has been available through separately managed accounts since March 1, 2016.
"The Power Momentum Index Fund combines a variety of elements in an effort to mitigate risk and maximize returns," said Mr. Thompson. "Our rules-based approach to momentum investing can provide investors with a core growth strategy that reduces volatility in the equity universe."
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About W.E. Donoghue & Co., LLC.
W.E. Donoghue & Co., LLC. (WEDCO) is a registered investment advisor established in 1986. The firm is a pioneer in delivering tactical asset allocation solutions. WEDCO manages in excess of $ 2.25 Billion for individual and institutional separate account clients as well as mutual fund clients. The firm has been recognized by Nelson's Institutional Rating Service as one of the "World's Best Money Managers." The firm emphatically does not subscribe to the buy-and-hold approach. WEDCO offers separate account strategies which employ exchange-traded funds (ETFs) and traditional mutual fund allocations as well as variable annuity strategies. In addition, the firm is the adviser to The Power Dividend Fund and The Power Income Fund.
The S&P 500 Index is a market capitalization weighted index of 500 widely held stocks often used as a proxy for the stock market. Standard and Poor's chooses the member companies based upon market size, liquidity, and industry group representation. Included are stocks of industrial, financial, utility, and transportation companies. The historical performance results of the S&P 500 Index are unmanaged; do not reflect the deduction of transaction and custodial charges, or the deduction of a management fee, the incurrence of which would have the effect of decreasing indicated historical performance results and cannot be invested in directly. Economic factors, market conditions and investment strategies will affect the performance of any portfolio, and therefore are not assurances that it will match or outperform any particular benchmark.
Investors should carefully consider the investment objectives, risks, charges, and expenses of the Power Momentum Index Fund. This and other information about the Fund is contained in the prospectus and should be read carefully before investing. The prospectus can be obtained by calling toll free 1-877-779-7462 (1-877-7-PWRINC). The Power Momentum Index Fund is distributed by Northern Lights Distributors, LLC. Member FINRA/SIPC. W.E. Donoghue & Co., LLC is not affiliated with Northern Lights Distributors, LLC.
As with all mutual funds, there is the risk that you could lose money through your investment in the Fund. The net asset value of the Fund will fluctuate based on changes in the value of the equity securities in which it invests. Hedging strategies may not perform as anticipated by the adviser and the Fund could suffer losses by hedging with underlying money market funds if stock prices do not decline. If money market funds are utilized, such Underlying Funds are subject to investment advisory and other expenses, which will be indirectly paid by the Fund. As a result, your cost of investing in the Fund will be higher than the cost of investing directly in Underlying Funds and may be higher than other mutual funds that do not invest in Underlying Funds. Investors cannot directly invest in an index and unmanaged index returns do not reflect any fees, expenses or sales charges.
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SOURCE W.E. Donoghue & Co., LLC.