Donoghue Forlines Momentum Fund
Ticker: MOJOX • MOJCX • MOJAX
Fund Goal
The Fund’s primary investment objective is capital growth with a secondary objective of generating income.
Potential Benefits
- Seeks growth by investing in quality stocks carrying strong risk-adjusted Momentum
- Invests in a diversified mix of sectors to reduce volatility
- Employs tactical overlays to attempt to potentially reduce significant market drawdowns
There is no guarantee that any investment strategy will achieve its objectives, generate profits or avoid losses.
Index Selection Process
Universe of 1000 Large to Mid-Cap Stocks
High Risk Adjusted Momentum Stocks with
Sector Neutral Exposure
Quality Oriented Screens
50 Stocks Equal Weighted
50% Shorter Term Exponential Moving Average Crossover
50% Longer Term Exponential Moving Average Crossover
100% Stocks or 50%
100% Defensive Position
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Represents the percentage increase/decrease in the net asset value from the prior trading day.
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Performance for periods less than one year is not annualized.
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The maximum sales charge for Class A Shares is 5.00%. Class A Share investors may be eligible for a reduction in sales charges.
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Inception date of the Class A, I & C shares is December 23, 2016.
The performance data quoted here represents past performance. Current performance may be lower or higher than the performance data quoted above. Past performance is no guarantee of future results. The investment return and principal value of an investment will fluctuate so that investor’s shares, when redeemed, may be worth more or less than their original cost. The Fund’s total annual operating expenses is 2.25% for Class A shares, 3.00% for Class C shares, and 2.00% for Class I shares. Please review the fund’s prospectus for more information regarding the fund’s fees and expenses. For performance information current to the most recent month-end, please call toll-free 877-779-7462.
Investors cannot directly invest in an index and unmanaged index returns do not reflect any fees, expenses or sales charges.
Portfolio Statistics
| Class A Shares | Class C Shares | Class I Shares |
|---|---|---|
| Cusip Number: 66539A108 |
Cusip Number: 66539A207 |
Cusip Number: 66539A306 |
| Ticker: MOJAX |
Ticker: MOJCX |
Ticker: MOJOX |
| Fund Assets*: $0.9MM |
Fund Assets*: $0.6MM |
Fund Assets*: $8.6MM |
*As of 9/30/2024
| Class A Shares | Class C Shares | Class I Shares | |
|---|---|---|---|
| Min. Investment | $1,000 | $1,000 | $10,000 |
| Subsequent Min. | $100 | $100 | $0 |
Check with your platform or broker dealer for I share aggregation potential.
Index Selection Process Details
The Donoghue Forlines Momentum Fund (the Fund) is a rules-based strategy that tracks a proprietary Index identified in the Fund’s prospectus. The Fund employs a disciplined investment selection process with tactical overlays that determines whether it will be in a bullish (invested) or defensive position.
The tactical overlays are made up of two triggers. The first trigger tracks exponential moving averages of the stocks in the Fund to identify potentially negative intermediate-term trends. The second is a longer term exponential moving average crossover that more broadly can be indicative of the health of the economy and monitors longer term evolving problems that could lead to bear markets or recessions. Based on the status of each tactical indicator, the Fund could be 100% in equities, 50% in equities/50% defensive, or 100% defensive. When in a defensive position, the Fund will invest in short-term U.S. Treasury ETFs or cash equivalents. When bullish, the Fund allocates equally in up to 50 stocks, diversified amongst a market neutral weight of sectors.
The stocks are selected based on having the highest trailing 12 month risk-adjusted momentum in their sector as well as meeting other quality factors. If stocks fail to meet the momentum and quality requirements in any sector, only the stocks that meet all the requirements will be included, and the remaining allocation is equally divided between the full final list of selected securities. The sectors used are Business Services, Consumer Cyclicals, Consumer Non-Cyclicals, Consumer Services, Energy, Finance, Healthcare, Industrials, Non-Energy Materials, Real Estate, Technology, Telecommunications, and Utilities.
Additionally, when bullish, the Fund rebalances and reconstitutes quarterly to bring the holdings back to an equal weighting.
Investment Committee
John A. Forlines, III • Jeffrey R. Thompson • Richard E. Molari • Nick Lobley
Investment Advisor to the Fund
Donoghue Forlines LLC is a tactical investment firm that has specialized in risk-managed portfolios since 1986. Our tactical strategies are based upon rigorous analysis of decades of historical data. The Donoghue Forlines Funds utilize technical indicators to recognize shifts in market momentum and uses proprietary tactical signals to help mitigate losses in down trending markets and potentially offer strong client-centric risk-adjusted returns over a full market cycle.
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