Biondo Focus Fund Investor Class (BFONX)

Overview

The described fund is a financial instrument that allows investors to participate in a diversified range of investments, including equity in both U.S. and foreign companies, fixed income securities, exchange-traded funds (ETFs), and options. It operates with a degree of flexibility in its investment strategy, which is evident from its engagement in various asset classes and its ability to employ leverage. The use of leverage, such as bank borrowing, which can go up to 33% of the fund's assets, indicates a more aggressive approach to increase potential returns. However, this also introduces a higher level of risk compared to non-leveraged funds. The fund’s designation as non-diverse reflects its strategy to potentially hold a more concentrated portfolio compared to diversified funds, possibly focusing on investments the managers believe are most likely to achieve the fund's investment objectives.

Products and Services

• Common Stock of U.S. Companies

  Investments in the equity of corporations based in the United States, covering a broad spectrum of market capitalizations. This allows investors exposure to the performance of U.S. companies, which can range from large, well-established firms to smaller, potentially faster-growing entities.

• American Depositary Receipts (ADRs)

  ADRs represent shares in foreign companies that are traded on U.S. stock exchanges. Investing in ADRs provides an opportunity for fund participants to gain exposure to international markets without the complications of investing directly in foreign stock exchanges, potentially diversifying their investment and risk.

• Investment Grade Fixed Income Securities

  This component includes securities such as bonds that have a high credit quality rating. Investment in these instruments aims to provide stable income to the fund while preserving capital, serving as a counterbalance to the more volatile equity investments.

• Exchange-Traded Funds (ETFs)

  ETFs are investment funds traded on stock exchanges, much like stocks. They hold assets such as stocks, commodities, or bonds and generally operate with an arbitrage mechanism designed to keep trading close to its net asset value, though deviations can occur. The fund's investment in ETFs allows it to easily gain exposure to a broad array of sectors, geographic regions, or asset classes.

• Options on Common Stock, ADRs, and ETFs

  Options are financial derivatives that give the buyer the right, but not the obligation, to buy or sell the underlying asset at a specified price on or before a certain date. The fund's use of options can serve multiple purposes, including income generation, hedging, and potentially to profit from movements in the underlying securities’ prices.

Leveraging Strategies, Including Bank Borrowing:

The fund has the ability to employ leverage, including borrowing from banks, up to a specified limit of its total assets. This strategy can amplify returns but also increases risk. Leverage is used in an attempt to enhance the performance of the fund's portfolio but it introduces greater volatility and potential for loss.