More Investors Receive Access to Tactical Dividend Strategy

W.E. Donoghue & Co. Launches New Share Class of Power Dividend Index Fund to Meet Rising Investor Demand

- Class C shares (PWRCX) offer more investors exposure to the Power Dividend Index, one of the first tactical dividend indices.

- Fund's distinct strategy seeks to increase total return while deploying a tactical overlay to preserve capital in all market conditions.

News provided by

W.E. Donoghue & Co., Inc.

Jan 06, 2015, 09:08 ET

NORWOOD, Mass., Jan. 6, 2015 /PRNewswire/ -- W.E. Donoghue & Co., Inc. (WEDCO) announces the introduction of Class C shares of its Power Dividend Index Fund (Class A: PWDAX, Class I: PWDIX). The Class C shares trade under the "PWRCX" ticker symbol on the New York Stock Exchange, and were created in response to increased demand from the investment community for access to the Fund's strategy. A prospectus for the new share class is available at http://www.powerincomefund.com.

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"Long-term, risk-averse investors are always looking for new strategies that can simultaneously produce income and mitigate downside risk, and many investors have expressed interest in our Fund due to its distinct combination of dividend investing with a tactical overlay," said Jeffrey R. Thompson, WEDCO Vice President and Portfolio Manager. "The new share class enables more investors to take advantage of our strategy for potentially increasing total return while protecting capital during all parts of a market cycle."

The Fund attempts to generate income by utilizing WEDCO's proprietary Power Dividend Index, one of the first tactical dividend indices. The Power Dividend Index isolates the top five dividend-yielding stocks in each of the S&P 500 Index's* 10 Global Industry Classification Standard sectors. These 50 stocks, which comprise the S-Network Sector Dividend Dogs Index*, are equally weighted in the Fund's portfolio. The Fund sells positions in stocks that are removed from the S&P 500, and its equity holdings are automatically rebalanced on a quarterly basis during normal market conditions.

In addition, WEDCO uses an intermediate-term tactical overlay to position the Fund bullishly or bearishly, depending on market developments and outlooks. The tactical overlay gives WEDCO the flexibility to allocate the Fund's portfolio to money market funds and other cash equivalents during equity market downturns.

The Fund's strategy has been available to investors through separately managed accounts since December 2012. Its Class A and Class I shares were launched in November 2013.

"This fund is an expansion of our investment philosophy. We do not believe in buy and hold, further we believe there is a time to be invested in the market and a time not to be," said William B. Dowler, WEDCO Vice President and Portfolio Manager.

About W.E. Donoghue & Co., Inc.
W.E. Donoghue & Co., Inc. (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 $1.475 Billion for individual and institutional separate account clients as well as mutual fund clients. 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 individual stock selection. In addition, the firm is the advisor to the Power Income and Power Dividend Index Funds. For more information, please visit www.donoghue.com.

* 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 S-Network Sector Dividend Dogs Index methodology employs a systematic approach to identify the five stocks in each of the ten S&P 500 sectors with the highest dividend yields. Investors cannot directly invest in an index and unmanaged index returns do not reflect any fees, expenses or sales charges.

The Power Dividend Total Return Index (Ticker: PWRDXTR) is a Service Mark of W. E. Donoghue & Co., Inc. The Power Dividend Index Portfolio is based on the Power Dividend Total Return Index (PWRDXTR) with an inception date of 12/31/1999; one cannot invest directly in an index. The Index is a rules based index, which the Power Dividend Index Portfolio follows.

There is no guarantee that any investment strategy will achieve its objectives, generate profits or avoid loses.

Investors should carefully consider the investment objectives, risks, charges, and expenses of the Power Dividend 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 Dividend Index Fund is distributed by Northern Lights Distributors, LLC. Member FINRA/SIPC. W.E. Donoghue & Co., Inc. 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.

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