Leader Total Return Fund Overview
The investment objective of the Total Return Fund is to seek income and capital appreciation to produce a high total return.
INVESTMENT SUITABILITY
The Fund may be suitable for:
Investors seeking a high level of current income. Investors seeking a total return strategy. Investors seeking to diversify their holdings with a portfolio consisting of primarily intermediate-term fixed income securities
| FUND DATA As of 1/31/12 | ||
| Ticker | LCTRX | LCTIX |
| Share Class | Inv. Share | I Share |
| Fund Assets | $14,040,119.74 | $14,040,119.74 |
| Minimum Investment | $2,500.00 | $2,000,000.00 |
| Minimum Subsequent | $100.00 | $100.00 |
| Number of Holdings | 34 | 34 |
| Gross Expense Ratio* | 1.51% |
1.01% |
| Net Expense Ratio* | 1.51% | 1.01% |
| Effective Date | 7/30/10 | 7/30/10 |
| Management Fee | 0.75% | 0.75% |
| 12b-1 Fee | 0.50% | N/A |
| SHARE PRICE As of 1/31/12 | |
| Inv. Share NAV | $10.00 |
| I Share NAV |
$9.97 |
| FUND PORTFOLIO STATISTICS As of 1/31/12 | |
| Avg. Coupon | 5.38% |
| Avg. Effective Duration | 3.22 |
| Avg. Current Yield | 5.45% |
| Avg. Yield to Maturity | 5.25% |
| 30 Day SEC Yield - Inv. Share | 2.28 |
| 30 Day SEC Yield - I Share | 2.78 |
*There is a 2.00% redemption fee on shares held less than 6 months. Ratios listed are as of the 10/1/10 prospectus.
Investments in debt securities typically decrease in value when interest rates rise. This risk is usually greater for longer-term debt securities. Investment by the Fund in lower-rated and non-rated securities presents a greater risk of loss to principal and interest than higher-rated securities. The fund is exposed to credit risk where lower-rated securities have a higher risk of defaulting on obligations. Investments in foreign securities involve greater volatility and political, economic and currency risks and differences in accounting methods. Investments in Asset Backed and Mortgage Backed Securities include additional risks that investors should be aware of such as credit risk, prepayment risk, possible illiquidity and default, as well as increased susceptibility to adverse economic developments.
JOHN E. LEKAS - PORTFOLIO MANAGER
President, CEO of Leader Capital Corp. and Senior Portfolio Manager of the Leader Short Term Bond Fund
Mr. Lekas has over 18 years of investment experience and has managed fixed income securities on a discretionary basis for over 15 years.
INVESTMENT PROCESS – TOP DOWN FOCUS
- Economic Trends & Outlook
- Yield Curve Analysis
- Spread Analysis
- Diversification used to manage volatility
FUNDAMENTAL RESEARCH
Find companies with recognizable brands, consistent streams of revenue & valuable assets.
Questions:
- Can operating cash flow or free cash flow be sustained?
- Is the revenue stream consistent?
- Do they have monetizable assets?
- How is working capital and liquidity managed?
- When are bank lines of credit and debt coming due?
- What is the annual interest expense?
- How will changing economic trends affect covenants?
- Is the risk worth the reward?
SELL DISCIPLINE
In general, bonds are sold when:
- Valuation targets are achieved
- Changing economics affect the original reasons for investment
- The company exhibits deteriorating fundamentals
- More attractive alternatives exist
Definitions:
Free Cash Flow: Free Cash Flow is equal to the net income of a company plus depreciation and amortization less capital