THGWX — Toews Tactical Growth Allocation Fund

THGWX Fund Overview

THGWX — Toews Tactical Growth Allocation Fund is a US mutual fund managed by Northern Lights Fund Trust, categorised as Capital Appreciation / Growth Allocation. ABC INVEST provides holdings, performance, costs, cashflows, risk data, prospectus documents and SEC filings, sourced from SEC filings.

• Type: US mutual fund
• Manager: Northern Lights Fund Trust
• Category: Capital Appreciation / Growth Allocation
• Assets under management: $21.30M
• Ticker: THGWX
• SEC CIK: 0001314414
• SEC series ID: S000029449
• Share class ID: C000090400

THGWX Investment Objective and Strategy

Toews Tactical Growth Allocation Fund describes its objective and strategy as follows, from its latest prospectus filed with the SEC by Northern Lights Fund Trust.

Investment objective

The Fund seeks to provide long-term growth of capital.

Principal investment strategy

The Funds adviser seeks to achieve the Funds investment objective by investing primarily in: (1) exchange traded funds (ETFs) that invest primarily in U.S. and foreign common stocks of any capitalization and U.S. and foreign fixed income securities of any rating (including high-yield debt instruments), also known as junk bonds), (2) U.S. and foreign common stocks of any capitalization, (3) U.S. and foreign fixed income securities of any rating (including high-yield debt instruments), (4) futures total return swaps or credit default swapsthat use high yield debt instruments or high yield indexes as reference assets, and (5) U.S. or foreign cash equivalents using the advisers Growth Allocation strategy. The use of Growth in both the Funds name and the strategys name refers to the primary investment objective of long-term growth of capital rather than a strategy of investing in relatively high growth companies.

The advisers Growth Allocation strategy allocates assets among the following sub-strategies: (1) Hedged International Developed Equities, (2) Hedged High Yield Bond, (3) Hedged Large-Cap (4) Hedged Mid-Cap and (5) Hedged Small-Cap. Each sub-strategy seeks to capture returns representative of broad-based securities market indices or securities suggested by the sub-strategys name. The Funds level of investment risk economic exposure will range from 0% to 125% of the advisers expected total return of each sub-strategy index. The Fund defines the returns of the MSCI EAFE Index (composed of equities from 21 non-U.S. economically developed countries) as representative of the returns sought under the Hedged International Developed Equities sub-strategy. The Fund defines the returns of high-yield debt instruments (those rated lower than Baa3 by Moodys or lower than BBB- by S&P) as representative of the returns sought under the Hedged High Yield Bond sub-strategy.

The Fund defines the returns of the S&P 500 Index as representative of the returns sought under the Hedged Large-Cap sub-strategy. The Fund defines the returns of the S&P Mid-Cap 400 Index as representative of the returns sought under the Hedged Mid-Cap sub-strategy. The Fund defines the returns of the S&P Small-Cap 600 Index as representative of the returns sought under the Hedged Small-Cap sub-strategy. The adviser anticipates its Growth Allocation strategy, which determines asset allocation based upon an analysis of long-term historical returns and volatility of various asset classes, will produce asset allocation ranges as follows: Sub-Strategy Asset Class Allocation Target Allocation Range Hedged International Developed Equities 30% 0% to 50% Hedged High Yield Bond 20% 0% to 50% Hedged Large-Cap Equities 20% 0% to 40% Hedged Mid-Cap Equities 15% 0% to 30% Hedged Small-Cap Equities 15% 0% to 30% Each sub-strategy will be hedged (or sold outright to a cash equivalent) independently of the others.

This means the Fund may not be completely hedged or allocated at any one time and the Fund may maintain a position in one or more asset class and/or style position while being a defensive position for one or more others. Other than a cash equivalent, one asset class and/or style position will not dominate the total allocation of the Fund; however, the adviser may leverage each asset class and/or style position slightly. Generally, the allocation will not be rebalanced until ending a defensive position. However, the adviser may from time to time rebalance to the Fund to targets based on the advisers discretion. Up to 50% of the Funds assets may be invested in high yield debt instruments. The Fund defines high-yield debt instruments as corporate bonds or other bonds or debt instruments that are generally rated lower than Baa3 by Moodys Investors Service, Inc.

(Moodys) or lower than BBB- by S&P (below investment grade). Additionally, the Funds entire high yield debt allocation may be in securities rated below Caa3 by Moodys or CCC- by S&P or derivatives of such instruments. The Fund may invest in high yield bonds directly or through derivative instruments designed to replicate some or all of the features of an underlying portfolio of high yield bonds, such as credit default swaps or total return swaps. The Funds secondary objective is to limit risk during unfavorable market conditions, and when the adviser determines such conditions exist, the Fund will take a defensive position and/or be allocated 100% to U.S. Treasuries or short-term fixed income securities, U.S. or foreign cash or cash equivalents. The adviser employs what it defines as a hedging strategy by investing in a combination of securities and derivatives that it believes will produce economic exposure along a continuum similar to that of the securities of broad-based US and foreign stock indices and fixed income markets.

To hedge the Funds Underlying Fund positions, the Fund may buy put options on or sell short ETFs that primarily invest in high-yield debt instruments. The Funds level of economic exposure will range from 0% to 125% of the advisers expected total return of said indices and markets. The adviser also may use a representative sampling indexing strategy to manage the Fund. This indexing strategy involves investing in a representative sample of securities that collectively has an investment profile similar to the broad-based US and foreign stock indices and, with respect to the high-yield bond segments of the portfolio, the high-yield bond market as a whole. In seeking to provide some downside protection, the Fund employs an options strategy. In favorable markets, the Fund purchases out of the money put options on broad-based market and futures market indices.

The value of such put options will increase during market declines and may help reduce the Funds potential losses during such periods. In unfavorable markets, the Fund will close out those option positions. Additionally, the Fund may purchase call options on broad-based market and futures market indices during unfavorable markets. The value of such call options will increase during rising markets and may help the Fund capture positive returns that otherwise may have been missed in a rising market. Generally, the adviser does not attempt to evaluate individual securities. The adviser uses technical analysis of U.S. and foreign equity and fixed-income (including high yield bond) markets. The adviser monitors, including monitoring price movements and momentum of, said markets, in an effort to identify the proper weighting of the Funds portfolio.

The adviser buys and sells securities and derivatives to increase or decrease the Funds exposure to the broad-based U.S. and foreign stock indices and fixed-income (including high-yield bond) markets. The advisers decision to buy or sell the Fund holding will be made based on current market conditions and the advisers determination of the appropriate exposure level to said indices/markets. The Funds adviser may engage in active and frequent trading of the Funds portfolio securities and derivatives to achieve the Funds investment objective.

THGWX Costs and Fees

THGWX costs about $135 per $10,000 invested per year in fund expenses.

• Net expense ratio: 1.35%
• Gross expense ratio: 1.80%
• Portfolio turnover: 678%
• Brokerage commissions: 5.44 bps of average net assets (SEC N-CEN)

THGWX Cashflows

Over the 12 months to 2020-07, Toews Tactical Growth Allocation Fund had net inflows of $10.78M, from monthly SEC N-PORT filings.

THGWX Debt Constituents

No individual debt constituents are reported in Toews Tactical Growth Allocation Fund's latest SEC N-PORT filing.

THGWX Prospectus and SEC Filings

Official Toews Tactical Growth Allocation Fund filings on SEC EDGAR — prospectus, portfolio holdings and annual reports.

• Prospectus (485BPOS) — filed 2020-09-03
• Prospectus (485BPOS) — filed 2019-09-05
• Prospectus (485BPOS) — filed 2018-09-05
• Portfolio holdings (N-PORT) — filed 2020-09-22
• Portfolio holdings (N-PORT) — filed 2020-06-23
• Annual census (N-CEN) — filed 2020-07-14
• Annual census (N-CEN) — filed 2019-07-15

Related Funds

Other Capital Appreciation / Growth Allocation funds tracked on ABC INVEST:

• Catalyst/Millburn Hedge Strategy Fund (MBXAX)
• Roundhill Magnificent Seven ETF (MAGS)
• SPDR Bridgewater All Weather ETF (ALLW)
• Capital Appreciation Value Fund (JCAVX)
• Goldman Sachs Growth Strategy Portfolio (GGSIX)

Data Sources

ABC INVEST compiles this page from public filings made to the U.S. Securities and Exchange Commission (SEC) through EDGAR: portfolio holdings and monthly cashflows from Form N-PORT, expenses and returns from fund prospectuses (Form 485BPOS) and the SEC DERA Risk/Return Summary data sets, annual data from Form N-CEN, and shareholder reports from Form N-CSR.