How Much Does Congress Hurt Stock Portfolios?

“No man’s life, liberty, or property is safe while Congress is in session.”  Mark Twain

True then. True now.

Congressional Effect Management, Advisor to the Fund, believes it is especially accurate with respect to how much Congress hurts investment performance. As government has gotten bigger at an accelerating rate, the Advisor believes one of the biggest risk to investors in today’s market is legislative risk–the risk that the rules will change for an industry or for the country. In the 1990′s, Eric Singer studied this issue, and was surprised at how much and how consistently Congress hurt stock portfolios.

Specifically, since 1965, 46 years of empirical data shows that over long periods of time the stock market performs dramatically better on days when Congress is out of session as compared to days when Congress is in session.Read More

Fund Performance

Full Performance

Risk Discussion

Fund Fact Sheet

Prospectus

Congressional Effect

RISK METRICS* (SINCE INCEPTION**)

Standard Deviation Beta
CEFFX*** 9.16 0.25
S&P 500**** 18.47 1.00
Price $ Daily Change YTD 1 Year** 3 Years** Since Inception**
CEFFX*** 9.69 .00% -2.21% 5.31% .38% 1.54%
S&P 500**** 1843.00 -.71% .22% 32.29% 16.16% 7.51%

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* The Standard Deviation of a stock or index reflects its up and down volatility over time. The Beta of stock reflects its correlation with the broad stock market. Low Beta stocks can reduce the volatility of a portfolio overall, enhancing that portfolio’s risk-adjusted returns. (Source Morningstar). This information is for the three years ended June 30, 2013.

** For the period ended  June 30, 2013.

*** Expense Ratios – CEFFX 2012 Total Annual Operating Expenses : 2.92%, Net Expenses : 1.84%. The Advisor has agreed to maintain the Fund’s total annual operating expenses at 1.25% (exclusive of interest, taxes, brokerage fees & commissions, 12b-1 fees, Acquired Fund Fees & Expenses, and extraordinary expenses) through May , 2014. CEFFX is a no load fund.

**** The S&P 500 is an index created by Standard & Poor’s Corp. considered to represent the performance of the stock market generally. It is not an investment product available for purchase. In calculating these price gains, the Advisor used the performance of the S&P 500 without including dividends due to difficulties in obtaining daily data.If dividends had been included, the performance numbers for both in and out of session days would have been higher.

 

Investments in mutual funds involve risks. Past performance is not a guarantee of future performance. Investment return and principal will fluctuate with changing market conditions so that when redeemed, shares may be worth less or more than their original cost. Current performance may be lower or higher than the performance data quoted. To obtain the most recent month end performance information, please call the Fund toll free at 1-888-553-4233 or visit www.CongressionalEffect.com/performance.php.Investors should consider the investment objectives, risks, charges and expenses carefully before investing or sending money.

This and other important information about the Fund can be found in the Fund’s prospectus. For a prospectus containing this and other important information, call or write to the Fund c/o Matrix Capital Group, Inc., 630 Fitzwatertown Road, Willow Grove, PA 19090.  Or you can download it at www.CongressionalEffect.com. Please read the prospectus carefully before investing.