Dividend Performers (INDPX & IPDPX)

Dividend Performers is a professionally managed mutual fund that seeks to deliver both growth & income.

The Dividend Performers Fund’s primary investment objective is to provide current income, with a secondary objective of seeking long-term capital appreciation. The Fund’s strategy is twofold:

  • Invest in large-capitalization common stocks of dividend-paying U.S. companies
  • Utilize an option overlay strategy to enhance overall distributions to shareholders

Dividend Performers Key Facts


Portfolio Manager:

Innovative Portfolios, LLC

Total Net Assets:

(as of June 30, 2019)

A Share — $4,924.70
I Share — $9,120,194.09

Share Class Launch Date:

12/24/2018

Share Classes:

A Share (INDPX)
I Share  (IPDPX)

US Category Group:

Equity

Morningstar Category:

US Fund Large Value

Distribution Frequency:

Quarterly

CUSIP:

A Share — 19423L409
I Share — 19423L508

Number of Holdings:

(as of June 30, 2019)

59

NAV Per Share:

(as of June 30, 2019)

A Share — $11.71
I Share — $11.75

Expense Ratios:¹

A Share
Gross Expense Ratio 3.60%
Net Expense Ratio 1.75%

I Share
Gross Expense Ratio 3.28%
Net Expense Ratio 1.50%

Minimum Investment:

A Share — $5,000 initial
I Share — $100,000 initial

Dividend Performers Methodology

Dividend Performers will seek to potentially provide gross annual income from dividends of 2-3% and, in addition, gross annual income from option premium of 3-4%.

Fundamental Analysis & Research

Research uses a ‘risk-first’ focus in selecting stocks to be included in the portfolio:

  • to identify mispriced stocks
  • to score those stocks’ downside risk—risk of the stock versus potential return.

A fundamental value approach evaluates downside risk score on 22 fundamental factors—with the goal to avoid downside risk.

Portfolio Construction

Compiled from Dividend Achievers* stocks with the strongest downside risk scores.

Construction includes an option overlay strategy seeking a credit spread on the S&P 500 Index. The option overlay:

  • sells/writes an out-of-the-money short put option bi-monthly
  • also purchases an out-of-the-money long put option below the short option position
  • uses the long put option to potentially hedge any significant downside risk posed by the short put

* The NASDAQ US Broad Dividend Achievers Index represents firms that have increased their dividend for at least the last ten straight years.

Generation of Income

The Fund seeks both the opportunity for growth through capital appreciation of the stock share prices and the potential for consistent income from dividends plus option premiums from an option overlay strategy.

Dividend Performers Portfolio Managers

Dave Gilreath, CFP®

Managing Director

Chief Investment Officer

Portfolio Manager

Ron Brock

Managing Director

Chief Financial Officer

Portfolio Manager

Why Would I Own Dividend Performers?

Growth and Income

Dividend Performers invests in U.S. stocks with a history of raising their dividend and the potential for capital appreciation. The added option overlay offers the potential for enhancing both total return and cash flow to shareholders.

Diversified Income Stream

The Dividend Performers strategy includes income-producing equities and potential for premium income from an option overlay.

Complements Overall Portfolio

Dividend Performers offers the potential to add diversification to the income allocation of the portfolio construct.

Companies with Lower Volatility

Historically, companies with lower downside risk scores have the potential for long-term growth while exhibiting lower volatility and lower downside risk.

Professional Management

Access to institutional-quality fundamental research focused on downside risk analysis (DRA) with experienced option traders managing the overlay.

Mutual fund investing involves risk. Principal loss is possible.
An investor should consider the investment objectives, risks, charges and expenses carefully before investing. A prospectus containing this and other information may be obtained by calling 1-800-869-1679 or clicking here. Please read the prospectus carefully before investing.
NOT FDIC INSURED | NO BANK GUARANTEE | MAY LOSE VALUE
Distributed by Arbor Court Capital, LLC (Member FINRA)
Important Information
Expense Ratios as disclosed in the May 15, 2019 Prospectus:
A Share
Gross Expense Ratio 3.60%
Net Expense Ratio 1.75%
I Share
Gross Expense Ratio 3.28%
Net Expense Ratio 1.50%
(1) Expense ratios as disclosed in the May 15, 2019 Prospectus. Innovative Portfolios, LLC, the Fund’s investment advisor (the Advisor), has contractually agreed to waive its fee and/or reimburse expenses, at least through January 31, 2020, so that the Fund’s total annual operating expenses (excluding acquired fund fees and expenses, taxes and extraordinary expenses) do not exceed 1.75% for the Class A shares and 1.50 for the Class I shares. Without this arrangement, performance would be lower.
Portfolio holdings are subject to change without notice. The mention of specific securities is not a recommendation or solicitation to buy, sell or hold any particular security.
NAV per share is as of the prior day’s market close of regular trading on the NYSE, generally 4:00 p.m. Eastern time, on each day the NYSE is open for trading.
The Fund invests in options. All investment strategies carry risk, and transactions in options may carry a high degree of risk. Investors should carefully consider a Fund’s risks and investment objectives as an investment in a Fund may not be appropriate for all investors and is not designed to be a complete investment program. Investing in the Funds involves risk. It is possible that investing in the Funds may result in a loss. Before making an investment/allocation decision, investors and registered investment advisers (RIAs) allocating to clients’ account should consider the suitability of this investment with respect to such investor’s or client’s net worth, income, age, and risk tolerance. Investment should be avoided where an investor has a short-term investing time horizon and/or cannot bear the loss of some or all of their investment. Before investing in the Fund, investors and RIAs allocating to client’s account should read the discussion of risks of investing in the prospectus. You can obtain a prospectus by clicking here.
This material represents an assessment of the market environment at a specific point in time and should not be relied upon as investment advice, does not constitute a recommendation to buy or sell a security or other investment and is not intended to predict or depict performance of any investment. This material is not being provided in a fiduciary capacity and is not intended to recommend any investment policy or investment strategy or take into account the specific objectives or circumstances of any investor. Please consult with your investment, tax or legal adviser regarding your individual circumstances prior to investing.
The Funds are offered only to United States residents, and information on this site is intended only for such persons.