Newfound Research LLC (www.thinknewfound.com) congratulates its client, Copeland Capital Management, LLC (www.copelandcapital.com), for crossing $500 million in assets under management in the Copeland Risk Managed Dividend Growth strategy, which is offered as a mutual fund, under the ticker symbol “CDGRX” (www.copelandfund.com), and separately managed accounts. The investment strategy was originally launched on October 31, 2010. Copeland utilizes Newfound’s U.S. sector signals as risk management tools in this strategy.
Tom Rosedale, CEO of Newfound commented, “Copeland has been a successful and loyal client since we combined our offerings in Copeland’s strategy in 2010. As Copeland fast approaches its third anniversary managing this strategy, Newfound is proud to highlight the collaboration as a case study in how Newfound, with its quantitative tools and experience, can complement a fundamental manager’s skills in exciting investment strategies which have defensive qualities that are triggered in choppy markets, yet is capable of participating in up markets with additional opportunities for alpha generation.”
Copeland’s investment strategy employs a sector rotation strategy, with the ability to retreat to a partial or full cash position in adverse markets, but implements the strategy by investing in dividend achieving stocks as opposed to sector ETFs. Newfound’s signals first identify which sectors are poised to continue their upward trend, and then the rules of the strategy provide the weights per sector (each “on” sector’s allocation being equal, with no more than 25% of the portfolio allocated to a single sector). Copeland’s portfolio managers then choose and invest in those dividend achieving stocks that they believe exhibit the best opportunity for price appreciation.
Corey Hoffstein, CIO of Newfound continued, “Newfound believes that this investment strategy provides investors with an attractive option to participate in upward markets, yet have the ability to take a defensive position when Newfound’s top-down sector signals indicate that market trends are deteriorating. When combined with the bottom-up, fundamental methodology successfully employed by Copeland, a best-of-breed strategy is created.”
Newfound provides Copeland with its proprietary U.S. sector signals which recommend exposure to specific sectors of the S&P 500 Index. Newfound’s signals, generated from its proprietary dynamic, volatility-adjusted momentum models, are important building blocks in investment products and portfolios constructed by Copeland and other Newfound clients. Newfound has been offering data and research to clients since its founding in September 2008, and since 2011 has offered rule-based, quantitatively enabled investment strategies.
"Copeland has a strong reputation for successfully managing dividend growth investment strategies across multiple capitalization ranges. The success of this risk managed dividend growth strategy demonstrates the merits of tactical investment products that combine Newfound’s unique and highly effective tools and experience with a sound fundamental investment strategy. The historical outperformance of dividend growth stocks, our history of success in identifying the best of these companies and risk mitigation provided by the Newfound quantitative overlay provides the Copeland Risk Managed Dividend Growth Strategy with three powerful sources of alpha,” said Eric C. Brown, Co-Portfolio Manager for the strategy and CEO of Copeland.
The Copeland Risk Managed Dividend Growth Strategy seeks to achieve its investment objectives of producing long-term capital appreciation and growth of portfolio income by purchasing equities of companies traded on a U.S. stock exchange with a market capitalization of $250 million and above, restricted to companies that have increased their dividends for at least five consecutive years. Copeland believes that a company’s dividend growth rate is the key driver of stock price appreciation over time. The strategy also employs a tactical sector weighting methodology where it has the ability to completely avoid certain sectors and raise cash based on quantitative sector exposure recommendation signals, as determined by data from Newfound Research’s proprietary algorithms. The strategy sells securities when they no longer meet its fundamental dividend growth or quantitative sector selection criteria.
About Newfound Research LLC
About Newfound Research LLC Newfound is an independent financial technology and product innovation firm offering clients agile and accessible quantitative solutions. Since its inception in 2008, Newfound has collaborated with clients to create investment strategies rooted in quantitative integrity, requiring both quantitative depth and qualitative insight that deliver a more consistent fit between portfolio behavior and investor expectations. Newfound's utilities range from proprietary tactical timing models and proprietary risk measures to customized allocation techniques. For more information about Newfound, visit www.thinknewfound.com.
*There is no guarantee that any investment will achieve its objectives, generate positive returns, or avoid losses. Past performance is not indicative of future results.
Prospectus - Investors should carefully consider the investment objectives, risks, charges and expenses of the Copeland Risk Managed Dividend Growth Fund. This and other important information about the Fund is contained in the prospectus, which can be obtained by calling 1-888-9-COPELAND (1-888-926-7352). The prospectus should be read carefully before investing. The Copeland Risk Managed Dividend Growth Fund is distributed by Northern Lights Distributors, LLC member FINRA. Copeland Capital Management and Northern Lights Distributors are not affiliated.
Risk - Mutual Funds involve risk including possible loss of principal.
The Fund may invest in MLPs. Holders of MLP units have limited control and voting rights on matters affecting the partnership. In addition, there are certain tax risks associated with an investment in MLP units and conflicts of interest exist between common unit holders and the general partner, including those arising from incentive distribution payments. The Fund may invest in REITs. A REIT's performance depends on the types and locations of the rental properties it owns and on how well it manages those properties. Real estate values rise and fall in response to a variety of factors, including local, regional and national economic conditions, interest rates and tax considerations. The adviser's judgments about the return tracking characteristics of securities may prove incorrect and may not produce the desired results.
The fund may invest in small and medium capitalization companies and the value of these company securities may be subject to more abrupt or erratic market movements than those of larger, more established companies or the market averages in general. A higher portfolio turnover will result in higher transactional and brokerage costs. The Fund's performance may be more sensitive to any single economic, business, political or regulatory occurrence than the value of shares of a diversified investment company because as a nondiversified fund, the Fund may invest more than 5% of its total assets in the securities of one or more issuers.
Alpha - a measure of the difference between actual returns and expected performance, given the level of risk as measured by beta, where beta measures sensitivity to index movements.
S&P 500 Index is an unmanaged composite of 500 large capitalization companies. This index is widely used by professional investors as a performance benchmark for large-cap stocks. You cannot invest directly in an index and unmanaged index returns do not reflect any fees, expenses or sales charges.
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Tom Rosedale, 617-531-9773