April 2015 Performance - Iron Horse Fund | Van Hulzen Asset

Transcription

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