The Covered Bridge Fund

Phone Icon (651) 538-1011

Get In Touch Today


Investment Objective & Strategy

Welcome

Investment Objective & Strategy

The Fund seeks current income and realized gains by investing in common stocks and writing options. Generating capital appreciation is a secondary objective for the fund.

The Fund invests in large market capitalization, dividend paying equity securities of domestic and foreign companies. The Fund plans to sell options on these securities in order to generate option-premium income in addition to traditional dividend income. In severe market declines, the Fund may also purchase put options on an equity index to attempt to protect the Fund's principal.

The Fund expects to hold approximately 30-60 equity securities at any one time. The Advisor will select the securities for the Fund based on fundamental data analysis employed by a team driven investment discipline. The Advisor analyzes dividend payout ratios and cash flows of individual companies to determine the most attractive investment opportunities.

The Adviser also uses proprietary economic research and analysis to gauge current economic and business cycle conditions, and then based on this analysis, targets industries and sectors that the Advisor believes are well positioned to grow. The individual companies in which the Fund invests will rank highest in the Adviser's estimation based on fundamental analysis to include financial health, cash flow, business market position and quality of management. It is expected that the Fund's strategy will result in high portfolio turnover.

There is no assurance the fund will achieve it's investment objective.

  A SHARE I SHARE
Ticker TCBAX TCBIX
Cusip 66538E523 66538E499
Minimum Investment $5,000 $1,000,000
Subsequent Investment $1,000 $1,000

One Mouth 25 Covered Call Graph

One Mouth 25 Covered Call Graph

Target Income Composition
30% Dividend Income
30% Option Income
40% Capital Gains

Philosophy

The strategy of owning a stock and writing a covered call can potentially outperform the ownership of the stock alone. This occurs as long as the price of the underlying stock rises slightly, remains the same or decreases by a small amount. By consistently writing covered calls, over the long term, a portfolio will potentially show less volatility than owning the stock alone. The Covered Bridge Fund employs this strategy but writes calls on only half of each equity investment. While this approach reduces the option-premium income generated by the fund, it also allows the principal of the portfolio to potentially grow with rising underlying stock prices. The above chart is for hypothetical purposes only. This illustrates how the Covered Bridge Fund can potentially allow for the participation in the stock beyond the option exercise price of 25. This is due to continued partial ownership of the stock.

Advisor

Stonebridge Capital Advisors, LLC serves as investment adviser to the Fund. Subject to the authority of the Board of Trustees, the Adviser is responsible for management of the Fund's investment portfolio. Stonebridge Capital Advisors is a SEC-registered investment advisor formed in 1997 to provide portfolio management services to high net worth individuals, insurance companies, endowments and foundations. Click Here to View Stone Bridge Cap » 


Contact

Thank you for your interest. We look forward to hearing from you soon.

Phone
(651) 538-1011

c/o Gemini Fund Services, LLC Address
17605 Wright Street
Omaha, NE 68130

Northern Lights Distributors Address
17605 Wright Street
Omaha, NE 68130


Disclaimers

Risk Disclosure

Investments in foreign securities could subject the Fund to greater risks including, currency fluctuation, economic conditions, and different governmental and accounting standards. Higher portfolio turnover will result in higher transactional and brokerage costs. Selling covered call options will limit the Fund's gain, if any, on its underlying securities. The Fund continues to bear the risk of a decline in the value of its underlying stocks. Option premiums are treated as short-term capital gains and when distributed to shareholders, are usually taxable as ordinary income, which may have a higher tax rate than long-term capital gains for shareholders holding Fund shares in a taxable account.

The premium received from a covered call provides a cushion from downward price movements of the underlying stock equal to the value of the premium. If the underlying stock falls in price, the holding will experience the full downside risk of the price movement less the premium received.

Prospectus Offering Disclosure

Mutual funds involve risk including the possible loss of principal. There is no assurance that the fund will achieve its investment objectives. Investors should carefully consider the investment objectives, risks, charges, and expenses of the Covered Bridge Fund. This and other important information about the Fund is contained in the prospectus, which can be obtained at www.THECOVEREDBRIDGEFUND.com or by calling +1-855-525-2151. The prospectus should be read carefully before investing. The Covered Bridge Fund is distributed by Northern Lights Distributors, LLC member FINRA.

Stonebridge Capital Advisors, LLC is not affiliated with Northern Lights Distributors, LLC. Gemini Fund Services, LLC is affiliated with Northern Lights Distributors, LLC.

NLD Code 0020-NLD-01/03/2014

CB Site Disclosure Profiles

Mutual funds involve risk including the possible loss of principal. There is no assurance that the fund will achieve its investment objectives. Investors should carefully consider the investment objectives, risks, charges, and expenses of the Covered Bridge Fund. This and other important information about the Fund is contained in the prospectus, which can be obtained by calling +1-855-525-2151 or at www.THECOVEREDBRIDGEFUND.com. The prospectus should be read carefully before investing. The Covered Bridge Fund is distributed by Northern Lights Distributors, LLC member FINRA/SIPC.

Stonebridge Capital Advisors, LLC is not affiliated with Northern Lights Distributors, LLC.

6097-NLD-1/24/2018