ATLANTA, Oct. 15, 2019 /PRNewswire/ -- Howard Capital Management, Inc. (HCM), an SEC-registered investment advisory firm, announced the launch of its new HCM Defender Series ETFs. The HCM Defender 100 Index ETF (QQH) and HCM Defender 500 Index ETF (LGH), track the Nasdaq-100® and S&P 500® respectively, and are designed to offer upside potential with downside risk management.
These innovative investment vehicles are guided by the company's proprietary HCM-BuyLine® model. When a key index, such as the S&P 500®, dips below the company's mathematical model projections, the HCM-BuyLine® signals to reduce the ETF's exposure to equities by investing in one- to three-month U.S. Treasury bills.
"We are taking indexing to a whole new level with our HCM Defender Series ETFs," said Vance Howard, CEO and Portfolio Manager, Howard Capital Management. "The need for speed in reacting to shortened trends prompted us to modernize our HCM-BuyLine® for index funds so it has the potential to react much quicker in retreating from, and reentering into, the market."
By offering a non-emotional, rules-based and repeatable approach to investing, HCM can shift investments on the indexes to cash equivalent investments and back again based on real-time mathematical models.
"When the Index's closing price drops to 3.5% below the HCM-BuyLine®, we will assume a 50/50 position in equities and cash or cash equivalents. If the Index drops to 6.5% below the HCM-BuyLine®, we will be 100% in cash or cash equivalents," said Howard. "Once the Index closes above the HCM-BuyLine® for five consecutive trading days after having dropped below one or both of the previous two levels, we will be reinvested in equities."
The HCM-BuyLine® uses a proprietary, quantitative investment model to determine when we should be in or out of the market. It also uses trend analysis to help identify broad trends in the equity market. When the trend is down, we reduce exposure to equities, and when the trend is up, we increase exposure to equities.
About Howard Capital Management
Founded in 1999, Howard Capital Management, Inc. (HCM) is an SEC-Registered Investment Advisory Firm, offering professional money management services to private clients, brokers, and broker-dealers through separately managed portfolios, retirement tools, self-directed brokerage accounts and proprietary mutual funds. HCM offers a straightforward solution to navigating market volatility while striving to drive performance and hedge against inflation. The company's defensive and tactical investment strategy seeks to mitigate investment risk through market downturns while pursuing opportunities for growth. For more information, please visit https://www.howardcm.com/.
Important Risk Information:
Investors should carefully consider the investment objectives, risks, charges and expenses of the HCM Funds. This and other important information about the Funds are contained in the prospectus, which can be obtained at www.howardcmetfs.com or by calling 770‐642‐4902. The prospectus should be read carefully before investing. HCM Funds are distributed by Northern Lights Distributors, LLC, member FINRA/SIPC. Northern Lights Distributors, LLC and Howard Capital Management, Inc. are not affiliated.
Past performance is no guarantee of future performance. Investing involves risk, including potential loss of principal. The use of leverage can magnify risk.
Risk Disclosure:
Mutual funds involve risk including possible loss of principal. When the Fund is out of the market and in cash or cash equivalents, there is a risk that the market will begin to rise rapidly and may cause the Fund to miss capturing the initial returns of changing market conditions. The mutual funds in which the Fund may invest may use leverage. Using leverage can magnify a mutual fund's potential for gain or loss and therefore, amplify the effects of market volatility on a mutual fund's share price. The Fund may be subject to the risk that its assets are invested in a particular sector or group of sectors in the economy and as a result, the value of the Fund may be adversely impacted by events or developments in a sector or group of sectors. The price of small or medium capitalization company stocks may be subject to more abrupt or erratic market movements than larger, more established companies or the market averages in general. A higher portfolio turnover will result in higher transactional and brokerage costs and may result in higher taxes when Fund shares are held in a taxable account. ETFs and mutual funds are subject to investment advisory and other expenses, which will be indirectly paid by the Fund. As a result, the cost of investing in the Fund will be higher than the cost of investing directly in other investment companies and may be higher than other mutual funds that invest directly in securities. The market value of ETF and mutual fund shares may differ from their net asset value. Each investment company and ETF is subject to specific risks, depending on the nature of the fund.
Howard Capital Management, Inc. ("HCM") is registered with the SEC and only transacts business where it is properly registered or is otherwise exempt from registration. SEC registration does not constitute an endorsement of the firm by the Commission, nor does it indicate that the advisor has attained a particular level of skill or ability. Changes in investment strategies, contributions or withdrawals, and economic conditions may materially alter the performance of your portfolio. Different types of investments involve varying degrees of risk, and there can be no assurance that any specific investment or strategy will be suitable or profitable for an investor's portfolio.
The HCM-BuyLine® (the "Indicator") is a proprietary indicator used to assist in determining when to buy and sell securities. When the Indicator identifies signs of a rising market, HCM then identifies the particular security(ies) that HCM believes have the best return potentials in the current market from the universe of assets available in each given model and signals to invest in them. When the Indicator identifies signs of a declining market, the Indicator will signal to move clients' investments to less risky alternatives. Not every signal generated by the Indicator will result in a profitable trade. There will be times when following the Indicator will results in a loss. An important goal of the Indicator is to outperform the market on a long-term basis. The reason is the mathematics of gains and losses. A portfolio which suffers a 30% loss takes a 43% gain to return to the previous portfolio value. The Indicator Is reactive in nature, not proactive. They are not designed to catch the first 5–10% of a bull or bear market. Ideally, they will avoid most of the downtrends and catch the bulk of the uptrends. There may be times when the use of the Indicator will result in a loss when HCM re-enters the market. Other times there may be a modest positive impact. When severe downtrends occur, however, such as in 2000-2002 and 2007-2008, the Indicator has the potential to make a significant difference in portfolio performance. Naturally, there can be no guarantee that the Indicator will perform as anticipated. The Indicator does not generate stop-loss orders that automatically sell securities in the portfolio at a certain price. As a result, use of the Indicator will not necessarily limit your losses to the desired amounts due to the limitations of the Indicator, market conditions, and delays in executing orders.
Please remember to contact HCM, in writing, if there are any changes in your personal/financial situation or investment objectives for the purpose of reviewing/evaluating/revising our previous recommendations and/or services, or if you want to impose, add, or modify any reasonable restrictions to our investment advisory services. Please Note: Unless you advise, in writing, to the contrary, we will assume that there are no restrictions on our services, other than to manage the account in accordance with your designated investment objective. A copy of our current written disclosure Brochure discussing our advisory services and fees continues to remain available upon request. HCM 406 (10/2019) LANLD.ETFPR.100719 6938-NLD-10/10/2019
SOURCE Howard Capital Management
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