Laffer Tengler Equity Income Fund (TGLR)

Overview

The fund described is characterized by its active management approach, focusing on investing in high-quality, large-cap stocks, which are identified by the Sub-Adviser as having significant potential for earnings and dividend growth alongside an above-market dividend yield. The investment strategy underlines the importance of rigorous valuation, employing two key metrics as indicators of value: the Relative Dividend Yield (RDY) and Relative Price-to-Sales Ratio (RPSR). By concentrating specifically on these metrics, the fund aims to identify stocks that represent potential value opportunities for investors. Notably, the fund operates with a non-diversified status, meaning it may invest a greater percentage of its assets in fewer issuers, allowing for potentially higher returns but also higher risk.

Products and Services

• High-Quality, Large-Cap Stock Investments

The core focus of the fund is on investments in large-capitalization companies that are deemed to have high quality, meaning they are well-established businesses with potential for long-term growth. This investment strategy prioritizes companies with solid financials, strong market positions, and the ability to sustainably grow earnings and dividends over time.

• Earnings and Dividend Growth Potential

Investments are targeted towards companies that not only offer an above-market dividend yield but also demonstrate a strong potential for both earnings and dividend growth. This approach is aimed at delivering not just immediate income through dividends but also capital appreciation through the growth of the underlying stock value.

• Valuation Metrics: RDY and RPSR

The fund employs two specific valuation metrics to guide its investment decisions: Relative Dividend Yield (RDY) and Relative Price-to-Sales Ratio (RPSR). These metrics are utilized to assess the value of potential investments relative to the market and to help identify stocks that may be undervalued, suggesting a favorable buying opportunity for the fund.

• Non-Diversified Fund Structure

Operating as a non-diversified fund, this investment strategy allows for a concentration of assets in a smaller number of issuers. This approach can lead to higher returns if the selected investments perform well but comes with an elevated risk level due to the potential impact of any single investment’s performance on the overall fund.