April 2015 Performance - Iron Horse Fund | Van Hulzen Asset
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April 2015 Performance - Iron Horse Fund | Van Hulzen Asset
Iron Horse Fund Covered Call Strategy (IRHAX/IRHIX) April 2015 Investment Objective Fund Performance (As Of 04/30/2015) The Iron Horse Fund (the “Fund”) seeks a total return with less volatility than equity markets in general. In pursuing its objective, the Fund targets superior long term risk-adjusted returns versus longonly equities. $14.00 Strategy $12.00 The Fund invests in large cap companies that the portfolio managers expects to produce strong return on investment, pay regular dividends, have below‐average leverage, attractive valuations, and a consistent shareholder value-oriented track record. The Fund predominantly invests in dividend-paying companies and uses call options in an attempt to create incremental income and reduce portfolio volatility. The Fund seeks to make income a more significant component of the total investment return and targets long term risk‐adjusted returns versus long‐only equities. The goal is a portfolio that generates a higher than average annual income. Key Features Daily Liquidity Large Cap Blend/Value Experienced portfolio managers with a > 13-year track record in equity and covered call management Iron Horse Fund S&P 500 $13.00 $11.00 $10.00 $9.00 $8.00 For quarterly Fund commentary please visit us online at2013 www.ironhorsefund.com 2011 2012 2014 PERFORMANCE AT NAV without sales charge 1m 3m A Share I Share 1.57% 1.67% 3.14% 3.21% BXM S&P 500 YTD 1Y 2Y 3Y 0.51% 0.65% 0.96% 1.03% 5.04% 5.32% 7.22% 7.50% 7.92% 8.32% 6.91%* 9.87%** 1.44% 4.63% 4.40% 3.15% 5.31% 7.69% 7.15% 0.96% 4.09% 1.92% 7.90% (A) 9.24% (I) 14.41% (A) 18.82% (I) 5.07% 6m 12.98% 16.65% 16.73% Fund Facts CALENDAR YEAR RETURN* 2011 2013 2014 Fund Inception Date: July 7th, 2011 Type of Investment: Covered Calls Dividend Frequency: Quarterly A Share I Share -2.80% - 7.17% 7.16% 15.74% 16.15% 6.20% 6.48% BXM S&P 500 2.96% -6.07% 5.20% 15.99% 13.26% 32.39% 5.64% 13.69% Ticker Symbols CUSIP A Share IRHAX I Share IRHIX 66537Y108 66537Y207 Minimum Investment $2,500 $100,000 A Share I Share Sub-Advisor Van Hulzen Asset Management LLC 4370 Town Center Blvd., Suite 220 El Dorado Hills, CA 95762 (916) 608-4284 www.vaminstitutional.com Portfolio Managers Craig Van Hulzen John Pearce Stefan ten Brink 1 2015 2012 1Y PERFORMANCE as of 03/31/2015 A Share (no Load) I Share A Share (with Load) 4.51% 4.78% -1.24% Since Inception Since Inception*** 6.63%* 9.59%** 4.95%* * Inception date A Share: July 7, 2011/Returns greater than 1 year are annualized ** Inception date I Share: November 16th, 2011/Returns greater than 1 year are annualized *** Since inception return for most recent quarter-end (03/31/2015) Investors should carefully consider the investment objectives, risks, charges and expenses of the Iron Horse Fund. This and other important information about the Fund is contained in the prospectus, which can be obtained at www.ironhorsefund.com or by calling (855) 241-7514. The prospectus should be read carefully before investing. The Iron Horse Fund is distributed by Northern Lights Distributors, LLC member FINRA/SIPC. Van Hulzen Asset Management and Northern Lights Distributors are not affiliated. Maximum sales charge for Class A is 5.75%. Total Annual Operating Expenses are 1.86% and 1.61% for the Class A and I shares respectively. The performance data quoted here represents past performance. Current performance may be lower or higher than the performance data quoted above. Investment return and principal value will fluctuate, so that shares, when redeemed, may be worth more or less than their original cost. Past performance is no guarantee of future results. Results shown reflect the waiver, without which the results could have been lower. A Fund's performance, especially for very short periods of time, should not be the sole factor in making your investment decisions. For performance information current to the most recent month-end, please call toll-free 855-241-7514 or visit our website, www.ironhorsefund.com (855) 241-7514 www.ironhorsefund.com Iron Horse Fund Covered Call Strategy (IRHAX/IRHIX) Covered Call Essentials A Covered Call Strategy invests in a long portfolio of stocks and covers its positions by selling call options. The net long position of a covered call strategy will by definition be smaller than that of the stock portfolio itself. By using a Covered Call Strategy, the goal is to exchange the uncertain upside potential of a stock price (beyond a certain pre-determined target price) for a certain amount of current period income. The Fund’s goal in using covered calls is to outperform the market over the course of a business cycle. These strategies generally perform best in sideways or downward moving markets but may underperform when markets move dramatically higher. April 2015 Top 10 Holdings Portfolio Characteristics Name % GENERAL ELECTRIC AIG IBM VERIZON COMMUNIC PHILIP MORRIS IN MICROSOFT CORP SOUTHERN CO PRICELINE GROUP APPLE INC SYSCO CORP 4.0 3.2 3.1 3.0 2.9 2.9 2.8 2.7 2.7 2.5 Number of Holdings Median Market Cap Dividend Yield 67 97bln 2.4% Risk Analysis Since Inception* Standard Deviation – Fund (Annualized) Standard Deviation – S&P 500 (Annualized) Sharp Ratio Beta vs. S&P 500 R-Squared 10.6% 15.9% 1.75 0.6 0.9 Risk measures apply to Class A Shares only. Inception date: A Share July 7, 2011 Holdings are subject to change and should not be considered investment advice Sector Exposure Iron Horse Fund S&P 500 Re-Shaping Total Return Income Income Price Appreciation Price Appreciation Long-Only Equities Iron Horse Objective Gain/Loss Covered Call Graphically Stock Price 2 Important Definitions: Business Cycle: The recurring and fluctuating levels of economic activity that an economy experiences over a long period of time. Call Option: An agreement that gives an investor the right (but not the obligation) to buy a security at a specified price within a specific time period. Covered Call: An options strategy whereby an investor holds a long position in an asset and writes (sells) call options on that same asset in an attempt to generate increased income from the asset. Return on Investment: rate of return annualized over a given period, expressed on an annual basis or as a return per year. Volatility: A statistical measure of the dispersion of returns for a given security or market index. Volatility is often measured by using the standard deviation between a security’s returns and a market index. Typically, the higher the volatility, the riskier the security. Standard Deviation: a measure of daily volatility of returns. Typically, the higher the volatility, the riskier the security. Beta: a measure of the volatility of a fund relative to the overall market. Sharpe Ratio: A riskadjusted measure used to determine reward per unit of risk. R-Squared: The percentage of a fund’s movement that can be explained by movements in its benchmark index. Mutual Funds involve risk including the possible loss of principal. There is no assurance that the fund will achieve its investment objectives. The use of leverage embedded in written options will limit the Fund's gains because the Fund may lose more than the option premium received. Selling covered call options will limit the Fund's gain, if any, on its underlying securities and the Fund continues to bear the risk of a decline in the value of its underlying stocks. The CBOE S&P 500 BuyWrite Index (BXM) is a benchmark index designed to track the performance of a hypothetical buy-write strategy on the S&P 500 Index. The BXM is a passive total return index based on (1) buying an S&P 500 stock index portfolio, and (2) "writing" (or selling) the near-term S&P 500 Index (SPXSM) "covered" call option, generally on the third Friday of each month. The S&P 500 Index consists of 500 stocks chosen for market size, liquidity, and industry group representation. It is a market-value weighted index (stock price times number of shares outstanding), with each stock's weight in the Index proportionate to its market value. It is widely used as a benchmark of U.S. equity performance. It is not possible to invest directly in an index. Standard deviation is a statistical measurement of volatility risk based on historical returns. 4299-NLD-5/1/2015 (855) 241-7514 www.ironhorsefund.com