Social Impact Mutual Fund Looks for Bigger Impact Than Returns

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Can a successful fund company have a larger social impact? Portfolio manager, Steve Hanley, discusses a new approach into how Camelot Portfolios is taking the steps for social impact.

Camelot Portfolios, LLC

We target specific outcomes that we believe can be sustainably solved using a combination of both dollars and strategic alignment managed by great intellectual capital.- Steve Hanley

The Camelot Premium Return A Load Waived Fund was ranked 5 stars out of 196 funds in the Tactical Allocation Category for returns for 3 year period ending 5/31/2014.

While impressive, the most refreshing aspect may very well be the company vision and not returns.

Advisor to the fund, Camelot Portfolios is driven by a vision to not only seek disciplined investment returns but also create large impact locally and nationally. They are strategically working with local community leaders to pour resources back into the community in a way that will have a lasting legacy for those in need. “We have been blessed to achieve our level of success and wish to do everything possible to create a larger impact that goes well beyond monetary limitations," said Camelot Funds president Stephen Hanley.

They are focused on starting with large local impact and working outward. The strategic focus on impact using time, talent and money is not new but seems to be catching fire nationwide. Many companies now realize the importance and value of stewarding profit for long term social impact. “Profitable companies often times can produce sustainable and growing social impact while providing jobs and positive company culture," stated Mr. Hanley. Camelot aims to align all marketing, giving, talent and collaboration in a way to leverage monetary resources for much greater impact. They prefer to pick problems that can be solved and quantify the desired outcome so success can be measured. New endeavors may include targeting local school impact programs and feeding the hungry according to Mr. Hanley.

“Many companies give money, we aim to solve problems using more than just giving. While money is important, money alone does not solve problems and many times can make it worse. Simply look at the money given to Africa through a donation model as opposed to business growth model and you will see many reverse correlations to actual problem solving. We target specific outcomes that we believe can be sustainably solved using a combination of both dollars and strategic alignment managed by great intellectual capital," said Mr. Hanley.

While still in the infancy stages, this outcome driven thought process and fresh look at resources and collaboration may be the new way businesses look at results: social progress as bi‐product of solid profit.

Morningstar is an independent provider of financial information. Morningstar rates mutual funds from one to five stars based on how well they've performed (after adjusting for risk and accounting for all sales charges) in comparison to similar funds. Within each Morningstar Category, the top 10% of funds receive five stars, the next 22.5% four stars, the middle 35% three stars, the next 22.5% two stars, and the bottom 10% receive one star. Funds are rated for up to three time periods‐‐three‐, five‐, and 10 years‐‐and these ratings are combined to produce an overall rating. Funds with less than three years of history are not rated. Ratings are objective, based entirely on mathematical evaluation of past performance. They're a useful tool for identifying funds worthy of further research, but shouldn't be considered buy or sell recommendations.

Investments in mutual funds involve risks. Investment return and principal value will fluctuate with changing market conditions so that when redeemed, shares may be worth more or less than their original cost. The fund has non-diversification risk, as the Funds are more vulnerable to events affecting a single issuer. Investments in lesser‐known, small and medium capitalization companies may be more vulnerable than larger, more established organizations. There are risks associated with the sale and purchase of call and put options. The fund intends to write options on a significant portion of its portfolio. The options will generally have terms of three to six months resulting in proceeds being reinvested several times during the year. This can result in a higher level of portfolio turnover rate. As the seller (writer) of a covered call option, the Fund assumes the risk of a decline in the market price of the underlying security below the purchase price of the underlying security less the premium received, and gives up the opportunity for gain on the underlying security above the exercise option price.

Investors should carefully consider the investment objectives, risks, charges and expenses of the Camelot Premium Return Fund. This and other important information about the Fund is contained in the prospectus, which can be obtained at or by calling 855‐226‐3863. The prospectus should be read carefully before investing. The Camelot Premium Return Fund is distributed by Northern Lights Distributors, LLC member FINRA.

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Matt Moses
Camelot Portfolios, LLC
+1 (419) 794-0538 Ext: 118
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Steve Hanley
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