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New Fund Offers Power Combo: High Yield & Low Volatility
NORWOOD, MASS. — November 19, 2013
W.E. Donoghue & Co., Inc. (WEDCO), a pioneer in delivering tactical asset allocation strategies, announces the launch of the Power Dividend Index Fund (Class A: PWDAX, Class I: PWDIX). The mutual fund’s distinct strategy entails utilizing WEDCO’s proprietary Power Dividend Index — one of the financial services industry’s first tactical dividend indices — to seek togenerate income while deploying a tactical overlay in an effort to preserve capital in all market cycles.
The Power Dividend Index Fund (PWDIX, PWDAX) tracks the W.E. Donoghue Power Dividend Total Return Index (PWRDXTR). The W.E. Donoghue Power Dividend Total Return Index uses a proprietary methodology to trigger allocations between an equally weighted portfolio of dividend paying stocks and money markets. The PWRDXTR methodology employs a systematic approach to identify the five stocks in each of the ten S&P 500 Global Industry Classification Standard (GICS) sectors with the highest dividend yields. The ten GICS sectors are consumer discretionary, consumer staples, energy, financials, health care, industrials, information technology, materials, telecommunication services and utilities. This methodology is designed to convey the potential benefits of high dividend yield, sector diversification, equal weighting and risk reduction. Technical indicators are utilized as an overly for allocating between either stocks or money markets, should market conditions warrant, to attempt to mitigate losses during equity market downturns.

The technical indicators employed are a tactical overlay based on exponential moving average crossovers utilized to determine whether the Index, and therefore the Fund, will either be in a bullish or bearish position. When in a bearish position the underlying equity portfolio of 50 stocks are rebalanced on a quarterly basis to bring the holdings back to an equally weighted portfolio. The rebalance is done at the close of trading on the third Friday of the last month of each calendar quarter.

Why Us?

Clients are looking for answers today and Financial Advisors are searching for solutions. The Power Dividend Index Fund is an appropriate choice for investors who are looking for income and growth from their equity investments. Investors are increasingly unwilling to take the downside volatility that the stock market has experienced over the past decade plus.

Many investors are relying on investment managers to take action and protect them when the market declines. W.E. Donoghue & Co. has solutions to offer clients that utilize technical indicators to move client’s assets to cash in an effort to reduce volatility and risk.

We believe that our solutions are what clients are searching for.

Who We Are

At W.E. Donoghue & Co. we use proprietary models to identify and follow market trends. Our objective is to be invested for most of an uptrend and out of the market for most of the downtrend. We monitor conditions daily and identify trends where possible. Our job is to guide you utilizing our experience and the market’s actual performance. We do not attempt to predict trends or which direction the market will take tomorrow or next week. In fact, we believe that trends cannot be predicted consistently over time, which is why we follow the existing trend.

Please consider W.E. Donoghue’s proactively managed Power Dividend Index Fund for the equity allocation of your client’s overall portfolio, or even as an alternative to buying and holding the volatile stock market.

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Learn about our "Power Income Fund" here.