Donoghue Forlines Tactical Income Fund
Ticker: PWRIX • PWRCX • PWRAX
Fund Goal
The fund’s primary investment objective is total return from income and capital appreciation. It has a secondary objective of capital preservation. We find income opportunities across the three major asset classes – global fixed income, global equities and alternatives. We believe this orientation is critical to both short- and long-term investment success.
Potential Benefits
- Seeks attractive current income and preservation of capital during market declines
- Invests in ETFs across asset classes, primarily fixed income and to a lesser extent equities and alternatives
- Tactically manages risk and opportunity with a longterm global macroeconomic view
There is no guarantee that any investment strategy will achieve its objectives, generate profits or avoid losses.
Portfolio’s 4 Fundamental Principles
Global Allocation
Global diversification across asset classes seeks to reduce portfolio risk and volatility by limiting exposure to individual risk factors
Fundamental Analysis
Forward-looking risk assessment through fundamental analysis seeks to anticipate market events and trends rather than reacting to them
Tactical Management
The Fund seeks to adapt to evolving risks and opportunities, rather than switching quickly between assets
Risk Management
All Donoghue Forlines portfolios have the ability to raise cash or short-term Treasuries to help reduce the risk during volatile market downturns
Download the Fact Sheet above to view complete standardized performance.
- 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 shares is September 14, 2010 and November 25, 2014 for Class C.
The performance data quoted here 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. The Fund’s total annual operating expenses is 2.02% for Class A shares, 2.77% for Class C shares, and 1.77% for Class I shares. Please review the fund’s prospectus for more information regarding the fund’s fees and expenses. For performance information current to the most recent month-end, please call toll-free 877-779-7462.
Keys to Our Approach
Donoghue Forlines Tactical Income Fund is designed for those looking to find income and believe their investment also needs to be managed to try to mitigate market risks.
- Donoghue Forlines believes that diversifying assets globally while actively managing exposure to all three major asset classes: equities, fixed income, and alternatives is critical to both short- and longterm investment success for global strategies.
- This strategy combines a tactical and strategic top-down macro approach to asset allocation.
- The fund does not short or use levered ETFs.
Asset Allocation Ranges1 | |
|---|---|
| Fixed Income | 0-100% |
| Equities | 0-20% |
| Alternatives | 0-40% |
Portfolio Statistics
| Class A Shares | Class C Shares | Class I Shares |
|---|---|---|
| Cusip Number: 66537V 294 | Cusip Number: 66537V 286 | Cusip Number: 66537V 278 |
| Ticker: PWRAX | Ticker: PWRCX | Ticker: PWRIX |
| Fund Assets*: $2MM | Fund Assets*: $0.6MM | Fund Assets*: $73MM |
*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 |
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 operates as a fund of funds. Underlying Funds are subject to investment advisory and other expenses will be indirectly paid by the Fund. As a result, your cost of investing may be higher than the cost of investing directly in Underlying Funds and may be higher than other mutual funds that do not invest in Underlying Funds. Diversification does not ensure a profit or guarantee against a loss.
Credit Risk
There is a risk that issuers will not make payments on fixed income securities held by the Fund or a fund in which the Fund invests, resulting in losses to the Fund. In addition, the credit quality of fixed income securities may be lowered if an issuer’s financial condition changes. The issuer of a fixed income security may also default on its obligations.
Duration Risk
Longer-term securities may be more sensitive to interest rate changes. Given the recent, historically low interest rates and the potential for increases in those rates, a heightened risk is posed by rising interest rates to a fund whose portfolios include longer-term fixed income securities. Duration is the measure of the sensitivity of a debt security to changes in market interest rates. For example, if interest rates increase by 1%, a fixed income security with a duration of two years will decrease in value by approximately 2%.
ETF and Mutual Fund Risk
ETFs and mutual funds 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 other mutual funds and may be higher than other funds that invest directly in equity and fixed income securities. Each ETF and mutual fund 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 and index-tracking mutual funds in which the Fund invests will not be able to replicate exactly the performance of the indexes they track. ETFs are also subject to brokerage and other trading costs, which could result in greater expenses to the Fund.
Equity Risk
The net asset value 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.
Foreign Securities Risk
Because the Fund’s investments may include exposure to foreign securities, the Fund is subject to risks beyond those associated with investing in domestic securities. Foreign companies are generally not subject to the same regulatory requirements of U.S. companies thereby resulting in less publicly available information about these companies. In addition, foreign accounting, auditing and financial reporting standards generally differ from those applicable to U.S. companies.
Floating Rate Risk
Changes in short-term market interest rates will directly affect the yield on the shares of a fund whose investments are normally invested in floating rate debt. If short-term market interest rates fall, the yield on the Fund’s shares will also fall. Conversely, when short-term market interest rates rise, because of the lag between changes in such short-term rates and the resetting of the floating rates on the floating rate debt in the Fund’s portfolio, the impact of rising rates will be delayed to the extent of such lag.
Interest Rate Risk
Interest rate risk is the risk that fixed income security prices overall, including the prices of securities held by the Fund or a fund in which the Fund invests, will decline over short or even long periods of time due to rising interest rates. Bonds with longer maturities tend to be more sensitive to interest rates than bonds with shorter maturities.
Junk Bond Risk
Lower-quality bonds, known as “high yield” or “junk” bonds, present greater risk than bonds of higher quality, including an increased risk of default. An economic downturn or period of rising interest rates could adversely affect the market for these bonds and reduce the Fund’s ability to sell its bonds. The lack of a liquid market for these bonds could decrease the Fund’s share price.
Management Risk
The adviser’s judgments about the attractiveness, value and potential appreciation of particular security in which the Fund invests or sells short may prove to be incorrect and may not produce the desired results.
Underlying Fund Risk
If funds, ETFs, short-term treasury exchange traded funds or money market funds (“Underlying Funds”) are utilized, such Underlying Funds are subject to investment advisory 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 Underlying Funds and may be higher than other mutual funds that do not invest in Underlying Funds. The Fund will only utilize short-term treasury exchange-traded funds and money market mutual funds when it is in a defensive position.
U.S. Treasury Risk
The Fund has investment exposure to short-term U.S. Treasury securities through its investment in short-term treasury exchange-traded funds or direct investment in U.S. Treasury securities. 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.
Definitions
Volatility refers to the degree of fluctuation or uncertainty in the price of an asset over a specific period.