Donoghue Forlines Momentum Fund
Ticker: MOJOX • MOJCX • MOJAX
Fund Goal
The Fund’s primary investment objective is capital growth with a secondary objective of generating income.
Potential Benefits
- Seeks growth by investing in what we view as quality stocks carrying strong risk-adjusted Momentum
- Invests in a diversified mix of sectors seeking to reduce volatility
- Employs tactical overlays to attempt to potentially reduce significant market drawdowns
*There is no guarantee that any investment strategy will achieve its objectives, generate profits, or avoid loses.
Index Selection Process
-
Represents the percentage increase/decrease in the net asset value from the prior trading day.
-
Performance for periods less than one year is not annualized.
-
The maximum sales charge for Class A Shares is 5.00%. Class A Share investors may be eligible for a reduction in sales charges.
-
Inception date of the Class A, I & C shares is December 23, 2016.
The Fund’s total annual operating expenses are 3.05% for Class A shares, 3.80% for Class C shares, and 2.80% for Class I shares.
The performance data quoted represents past performance. Current performance may be lower or higher than the performance data quoted above. Past performance is no guarantee of future results. The investment return and principal value of an investment will fluctuate so that investor’s shares, when redeemed, may be worth more or less than their original cost.
For performance information current to the most recent month-end, please call toll-free 877-799-7462.
Portfolio Statistics
| Class A Shares | Class C Shares | Class I Shares |
|---|---|---|
| Cusip Number: 66539A108 | Cusip Number: 66539A207 | Cusip Number: 66539A306 |
| Ticker: MOJAX | Ticker: MOJCX | Ticker: MOJOX |
| Fund Assets*: $1MM | Fund Assets*: $0.6MM | Fund Assets*: $72MM |
*As of 6/30/2025
| Class A Shares | Class C Shares | Class I Shares | |
|---|---|---|---|
| Min. Investment | $1,000 | $1,000 | $10,000 |
| Subsequent Min. | $100 | $100 | $0 |
Check with your platform or broker dealer for I share aggregation potential.
Index Selection Process Details
The Donoghue Forlines Momentum Fund (the Fund) is a rules-based strategy that tracks a proprietary Index identified in the Fund’s prospectus. The Fund employs a disciplined investment selection process with tactical overlays that determines whether it will be in a bullish (invested) or defensive position.
The tactical overlays are made up of two triggers and are applied to the Syntax US Large Cap 500 Total Return Index. The first trigger tracks exponential moving averages of the aforementioned index to identify potentially negative longer-term trends that more broadly can be indicative of the health of the economy and monitors longer term evolving problems that could lead to bear markets or recessions. The second is an intermediate-term exponential moving average crossover that can potentially identify equity re-entry points. Based on the status of each tactical indicator, the Fund could be 100% in equities or 100% defensive. When in a defensive position, the Fund will invest in short-term U.S. Treasury ETFs or cash equivalents. When bullish, the Fund allocates equally in up to 50 stocks, diversified amongst a market neutral weight of sectors.
The stocks are selected based on having the highest trailing 3-month risk-adjusted momentum in their sector as well as meeting other quality factors. If stocks fail to meet the momentum and quality requirements in any sector, only the stocks that meet all the requirements will be included, and the remaining allocation is equally divided between the full final list of selected securities. The sectors used are Financials, Utilities, Healthcare, Energy, Consumer Staples, Real Estate, Materials, Consumer Discretionary, Information Technology, Communication Services, and Industrials.
Additionally, when bullish, the Fund rebalances and reconstitutes quarterly to bring the holdings back to an equal weighting.
Investment Committee
John A. Forlines, III • Jeffrey R. Thompson • Richard E. Molari • Nick Lobley
Investment Advisor to the Fund
Donoghue Forlines LLC is a tactical investment firm that has specialized in risk-managed portfolios since 1986. Our tactical strategies are based upon rigorous analysis of decades of historical data. The Donoghue Forlines Funds utilize technical indicators to recognize shifts in market momentum and uses proprietary tactical signals to help mitigate losses in down trending markets and potentially offer strong client-centric risk-adjusted returns over a full market cycle.
Visit Our Website
Donoghue Forlines LLC | 125 High Street, Suite 220 | Boston, MA 02110 | 1.800.642.4276
Investors should carefully consider the investment objectives, risks, charges, and expenses of the Donoghue Forlines Funds. This and other information about the Funds are contained in the prospectus and should be read carefully before investing. The prospectus can be obtained by calling toll free 1-877-779-7462.
The Donoghue Forlines Funds are distributed by Northern Lights Distributors, LLC. Member FINRA / SIPC. Donoghue Forlines LLC is not affiliated with Northern Lights Distributors, LLC.
Important Risk Information
Mutual funds involve risk including the possible loss of principal. The net asset value of the Fund will fluctuate based on changes in the value of the securities in which it invests. The Fund seeks to track a proprietary index that allocates to short-term Treasury ETFs or US Treasury securities based on a defensive indication from technical trends in the exponential moving average of a blend of two fixed income indexes. The exponential moving average is the average of the index’s value over a certain time frame. Diversification does not ensure a profit or guarantee against loss.
Large-cap companies may be unable to respond quickly to new competitive challenges, such as changes in technology and consumer tastes, and also may not be able to attain the high growth rate of successful smaller companies, especially during extended periods of economic expansion.
ETFs are subject to investment advisory fees 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 ETFs and may be higher than other Fund that invest directly in equity and fixed income securities. Each ETF is subject to specific risks, depending on the nature of the fund. ETF shares may trade at a discount to or a premium above net asset value if there is a limited market in such shares. ETFs are also subject to brokerage and other trading costs, which could result in greater expenses to the Fund.
The Fund has investment exposure to short-term U.S. Treasury securities through its investment in short-term treasury exchange-traded funds. All money market instruments, including U.S. Treasury obligations, can change in value in response to changes in interest rates, and a major change in rates could cause the share price to change. While U.S. Treasury obligations are backed by the full faith and credit of the U.S. government, an investment in the Fund is neither insured nor guaranteed by the Federal Deposit Insurance Corporation, U.S. government or any other government agency.
Equity Risk
The NAV of the Fund will fluctuate based on changes in the value of the equity securities in which it invests. Equity prices can fall rapidly in response to developments affecting a specific company or industry, or to changing economic, political or market conditions.
Hedging Risk
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.
Index Construction Risk
The Momentum Index, and consequently the Fund, may not succeed in its objective and may not be optimal in its construction, causing losses to the Fund.
Index Tracking Risk
Investment in the Fund should be made with the understanding that the securities in which the Fund invests will not be able to replicate exactly the performance of the index the Fund tracks because the total return generated by the securities will be reduced by transaction costs incurred in adjusting the actual balance of the securities. In addition, the securities in which the Fund invests will incur expenses not incurred by an index. Certain securities comprising the index tracked by the Fund may, from time to time, temporarily be unavailable, which may further impede the Fund’s ability to track an index.
Management Risk
The adviser’s decision to seek to follow the Momentum Index’s methodology in managing the Fund’s portfolio may prove to be incorrect and may not produce the desired results. Because the Fund seeks to track the Momentum Index, the Fund may forego certain attractive investment opportunities available to an actively managed fund. In following the Momentum Index’s methodology, the Fund may hold fewer securities than other diversified funds. Accordingly, the Fund’s performance may be more sensitive to market changes than other diversified funds.
Definitions
The inclusion of the Syntax US Large Cap 500 Index is for comparison purposes only. The Syntax US LargeCap 500 Index is a float market cap weighted index that tracks the performance of the 500 largest publicly traded US companies. it is designed to provide a benchmark tor the largecap investible US market. The index is rebalanced quarterly and its constituents are subject to liquidity screens and rank buffers.
Risk adjusted momentum refers to momentum strategies that incorporate a measure of volatility or risk into the calculation of a momentum score.
Positive free cash flow indicates that a company’s cash inflows from its operations exceed its cash outflows for both operating activities and capital expenditures.
Tactical overlay is a technique that uses trend following technical indicators to modify a portfolio’s risk and return characteristics.
Market Drawdown is defined as the largest percentage decline an investment experiences from its peak value to its lower value before it recovers to that peak again.
Volatility refers to the degree of fluctuation or uncertainty in the price of an asset over a specific period.