W.E. Donoghue & Co. Announces The Launch Of The Power Dividend Index Fund

NORWOOD, Mass., Nov. 19, 2013 /PRNewswire/ -- 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 to generate income while deploying a tactical overlay in an effort to preserve capital in all market cycles.

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"On the heels of our Power Dividend Index Portfolio's success in separately managed accounts and the demand from advisors for access to this strategy, we established a mutual fund to enable more investors to have the ability to benefit from the index," said Jeffrey R. Thompson, Senior Vice President and Portfolio Manager of WEDCO. "For long-term, risk-averse investors who share our conviction that traditional benchmarking is antiquated, this product may offer a more effective way to increase total return."

The Power Dividend Index isolates the top five dividend-yielding stocks in each of the 10 Global Industry Classification Standard (GICS) sectors — consumer discretionary, consumer staples, energy, financial services, healthcare, industrials, materials, utilities, telecommunication services and information technology — that comprise the S&P 500 Index^*. These 50 stocks make up the S-Network Sector Dividend Dogs Index^*, and are equally weighted in the Fund's portfolio. The Fund will sell positions in stocks that are removed from the S&P 500.

WEDCO utilizes an intermediate-term tactical overlay to position the Fund bearishly or bullishly depending on market developments and outlooks. This strategic mechanism enables the Fund's portfolio to be invested in money market funds and other cash equivalents in an effort to protect investors during equity market downturns. Under normal market conditions, the portfolio's stock holdings are automatically rebalanced on a quarterly basis.

The Fund's strategy has been available through separately managed accounts since December 17, 2012.

"The Power Dividend Index Fund combines a variety of elements in an effort to mitigate risk and maximize returns," said Mr. Thompson. "Our rules-based approach to dividend investing can provide investors with a core high-yield strategy unaffected by the volatility in the fixed-income universe."

For media inquiries, please contact Laura Simpson at 973-850-7319 or [email protected].

About W.E. Donoghue & Co., Inc.
W.E. Donoghue & Co., Inc. (WEDCO) is a registered investment advisor established in 1986. The firm is a pioneer in delivering tactical asset allocation solutions. WEDCO manages in excess of $600 million for individual and institutional separate account clients as well as mutual fund clients. The firm has been recognized by Nelson's Institutional Rating Service as one of the "World's Best Money Managers." The firm emphatically does not subscribe to the buy-and-hold approach. WEDCO offers separate account strategies which employ exchange-traded funds (ETFs) and traditional mutual fund allocations as well as variable annuity strategies. In addition, the firm is the adviser to the Power Income Fund.

* The S&P 500 Index is a market capitalization weighted index of 500 widely held stocks often used as a proxy for the stock market. Standard and Poor's chooses the member companies based upon market size, liquidity, and industry group representation. Included are stocks of industrial, financial, utility, and transportation companies. The S-Network Sector Dividend Dogs Index methodology employs a systematic approach to identify the five stocks in each of the ten S&P 500 sectors with the highest dividend yields. Investors cannot directly invest in an index and unmanaged index returns do not reflect any fees, expenses or sales charges.

Investors should carefully consider the investment objectives, risks, charges, and expenses of the Power Dividend Index Fund. This and other information about the Fund is contained in the prospectus and should be read carefully before investing. The prospectus can be obtained by calling toll free 1-877-779-7462 (1-877-7-PWRINC). The Power Dividend Index Fund is distributed by Northern Lights Distributors, LLC. Member FINRA. W.E. Donoghue & Co., Inc. is not affiliated with Northern Lights Distributors, LLC.

As with all mutual funds, there is the risk that you could lose money through your investment in the Fund. The net asset value of the Fund will fluctuate based on changes in the value of the equity securities in which it invests. Hedging strategies may not perform as anticipated by the adviser and the Fund could suffer losses by hedging with underlying money market funds if stock prices do not decline. If money market funds are utilized, such Underlying Funds are subject to investment advisory and other expenses, which will be indirectly paid by the Fund. As a result, your cost of investing in the Fund will be higher than the cost of investing directly in Underlying Funds and may be higher than other mutual funds that do not invest in Underlying Funds.

2849-NLD-11/12/2013

SOURCE W.E. Donoghue & Co., Inc.

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