Introducing the Al Frank Dividend Value Fund

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The Al Frank Dividend Value Fund Is a Mutual Fund Designed to Reduce Volatility while Employing the Time-Tested Prudent Speculator Strategy.

Al Frank Asset Management announces the intro-duction of the no-load Al Frank Dividend Value Fund. Its investment objective is long-term total return from capital appreciation and it adheres to the strategy of buying under-valued stocks and patiently waiting for the right time to sell. This buy low, hold, and sell high investment approach is the basic guideline of The Prudent Speculator, an investment newsletter from Al Frank Asset Management, the investment advisor to the fund.

Like the Al Frank Fund, a small- to mid-cap value fund that began in 1998, the new Dividend Value Fund will employ a value-based stock selection strategy. However, the new fund will invest only in those companies that pay a regular dividend, suggesting that the median market capitalization of the stocks held will likely fall into the mid- to large-cap category.

In announcing the fund, John Buckingham, President of Al Frank Asset Management, said, “We did a test of hypothetical returns for the investments in dividend-paying companies within the existing Al Frank Fund over the past six-and-one-half years. We discovered that while the return for the dividend stocks would not have been as great as that achieved by the Al Frank Fund, the volatility of returns for the hypothetical fund would have been far lower. This shows that for individual investors and advisors who like the investment approach of the Al Frank Fund, but who prefer the potential for smaller performance swings and the possibility of market-matching or even market-beating returns, our Dividend Value Fund might be an attractive fit.”

He added that today, investors are seeking ways to shore up returns while minimizing risk. “We believe a strategy focused on selective investment in dividend paying stocks may offer the perfect blend of maximum return at a given level of risk.”

To achieve this goal, fund management will invest in dividend-paying U.S. stocks and other equity securities that it believes are out of favor and undervalued. The portfolio is expected to be highly diversified and will generally hold more than 100 separate securities.

White Paper on Dividends

A research paper, “The Value of Dividends”, just released by Al Frank Asset Management, found that over the past 15 years, the largest dividend-paying stocks in the U.S. posted an average annual return of 13.7 percent. This was superior to the market and to non-dividend-paying stocks, for which respective average annual returns were 9.6 percent and 11.7 percent. Importantly, dividend-paying stocks achieved the better performance while offering lower levels of risk. The study shows the same pattern for mid-cap stocks. The Dividend Value Fund is expected to invest mainly in mid- and large-cap stocks.

“Investors need to keep in mind that research paper findings are based on a recent 15-year period, and that dividend-paying stocks did not outperform non dividend-paying stocks every year. Therefore, our Dividend Value Fund is designed for individuals with a long-term investment horizon of at least three to five years,” noted Mark Mowrey, an analyst at the firm.

The fund’s minimum investment requirement is $1,000. Accounts can be opened directly by calling 1-888-263-6443 or by visiting . The fund is also available through various brokerage house mutual fund supermarkets and via select investment advisors.

The Fund's investment objective, risks, charges and expenses must be considered carefully before investing. The prospectus contains this and other information about the investment company, and it may be obtained by calling 888 263-6443. Please read the prospectus carefully before investing.

We may not sell these securities until the registration statement filed with the Securities and Exchange Commission is effective. This communication is not an offer to sell these securities and is not soliciting an offer to buy these securities in any state where the offer or sale is not permitted.

Investing in securities of small and medium-capitalization companies involves greater price volatility than large-capitalization companies. Mutual fund investing involves risk and loss of principal is possible. While the Funds are no-load, management and distribution fees do apply. Please see the prospectus for further details.

Distributed by Quasar Distributors, LLC (09/04).

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Hedda Nadler
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