Income and tactical strategies now available in portable, mutual fund structure
October 7, 2015
Egg Harbor Township, NJ – Hanlon Investment Management, a leading tactical investment manager announced today the availability of two new mutual funds, the Hanlon Managed Income Fund and the Hanlon Tactical Dividend and Momentum Fund.
Both funds seek to attempt to limit downside risk, a goal of the Hanlon Investment Management approach for over 15 years. The Hanlon Managed Income Fund (HANAX, HANCX, HANIX, HANRX) seeks to provide current income, capital preservation and positive risk adjusted returns, while the Hanlon Tactical Dividend and Momentum Fund (HTDAX, HTDCX, HTDIX, HTDRX) seeks to provide capital appreciation and current income.
“Over the past decade and a half, we’ve had great success working with advisors on similar investing strategies in individual managed account and UMA structures”, said Sean Hanlon, CEO of Hanlon Investment Management. “Based on demand from advisors and their financial institutions, we are pleased to now offer access to this investment approach in a portable, mutual fund vehicle that will be available on all of the industry’s leading fund platforms.”
Hanlon’s philosophy on investment management is to aid clients in achieving long‐term goals by providing tactical investment strategies to take advantage of market movements and changes in the investment climate. By exiting the market when Hanlon’s proprietary science indicates market weakness, Hanlon clients can avoid large drawdowns in their assets, while at the same time being able to enjoy the benefits of market appreciation by moving back into the markets during periods of market strength.
“In today’s more volatile market environment, advisors and their clients need more sophisticated investment strategies to meet their financial goals and objectives.” Hanlon said. “Our tactical overlay approach combined with the academic and private sector research on the benefits of dividends and momentum as notable factors in generating alpha over the long term are part of that approach and our new mutual fund products will provide the industry with broader access to these strategies.”
To learn more about the Hanlon Managed Income Fund and the Hanlon Tactical Dividend and Momentum Fund, please logon to www.HanlonFunds.com for their relevant fact sheets. Both funds are available in A, C, I and R shares.
Hanlon Managed Income Fund – Risk Disclosures:
Investment Objective: The Fund seeks to provide current income, capital preservation and positive risk-adjusted returns.
When the Fund invests in other investment companies, including ETFs, it will bear additional expenses based on its pro rata share of the other investment company’s or ETF’s operating expenses, including the potential duplication of management fees. The Fund may invest in inverse, leveraged and inverse-leveraged ETFs. Inverse ETFs generally use derivatives that are designed to produce returns that move in the opposite direction of the indexes they track, meaning that that when the value of the index rises, the inverse ETF suffers a loss.
When the Fund invests directly or indirectly in fixed income securities, the value of your investment in the Fund will fluctuate with changes in interest rates. Fixed income securities that are rated below investment grade are subject to additional risk factors such as increased possibility of default, illiquidity of the security, and changes in value based on public perception of the issuer. The risk on a short sale is the risk of loss if the value of a security sold short increases prior to the delivery date, since the Fund must pay more for the security than it received from the purchaser in the short sale. The risk of loss may be unlimited.
The use of leverage, such as borrowing for investment purposes, will magnify the Fund’s gains or losses. The Fund may, at times, invest in other ETFs for hedging purposes. The success of the Fund’s hedging strategy will be subject to the adviser’s ability to correctly assess the degree of correlation between the performance of the instruments used in the hedging strategy and the performance of the investments in the portfolio being hedged. Foreign (non-U.S.) securities may also be less liquid and more difficult to value than securities of U.S. issuers. The risks associated with foreign (non-U.S.) investments may be more pronounced for investments in issuers in emerging market countries. The Fund is non-diversified, and thus may invest its assets in a smaller number of companies or instruments than many other funds.
Hanlon Tactical Dividend and Momentum Fund – Risk Disclosures:
Investment Objective: The Fund seeks to provide capital appreciation and current income.
Equity securities are susceptible to general market fluctuations and volatile increases and decreases in value as market confidence in and perceptions of their issuers change. A company that has historically paid regular dividends to shareholders may decrease or eliminate dividend payments in the future, which could result in a decrease in the value of the company’s stock and lower performance of the Fund. An investment in securities with positive momentum entails investing in securities that have had above-average recent returns. These securities may experience greater price volatility than other equity securities, which may negatively impact the investment performance of the Fund.
The Fund may be subject to the risk that its assets are invested in a particular sector or group of sectors in the economy. To the extent the Fund invests in a smaller number of holdings, the Fund may be more adversely impacted by changes in the price of individual holdings than funds with a greater number of holdings. A rules-based investment strategy may not be successful on an ongoing basis or could contain unknown errors. The value of a specific security can be more volatile than the market as a whole and may perform worse than the market as a whole.