Donoghue Forlines Tactical Income Fund Class C (PWRCX)

Overview

The fund is a comprehensive investment solution focusing on generating income through a diversified portfolio. It primarily invests in a range of income-producing exchange-traded funds (ETFs), including both fixed income securities and alternative strategy funds. By incorporating high yield or "junk" bonds into its strategy, the fund seeks to enhance returns, albeit at a higher risk profile. Additionally, the fund broadens its investment horizons by including ETFs that focus on dividend-paying equity securities from a variety of markets, including the United States, foreign, and emerging markets. This approach allows the fund to tap into different sources of income while maintaining a diversified investment portfolio.

Products and Services

• Fixed Income ETFs

  These ETFs invest in fixed income securities, offering a steady stream of income. The fund specifically includes ETFs that may take positions in non-investment grade fixed income securities, or "high yield" bonds, which are rated below Baa3 by Moody's or similarly by another rating agency. This component aims to boost the income potential of the portfolio, despite the associated increase in risk.

• Alternative Strategy ETFs

  Part of the fund's innovative approach includes investing in ETFs that follow alternative investment strategies. These strategies may vary but generally offer diversification benefits and the potential for income generation outside of traditional stock or bond investments. It's a way to access alternative markets and investment techniques that can provide income and possibly reduce overall portfolio risk.

• Dividend-Paying Equity ETFs

  The fund selects ETFs focusing on equities that pay dividends, including those from U.S., foreign, and emerging market issuers. This strategy seeks to capture the income generated from dividends, which can be a significant source of returns. By investing in dividend-paying equities, the fund aims to achieve a balance between income and growth potential across diverse geographic regions and economic sectors.