William E. Donoghue, Co, Inc. -- Brochure

8/9/2019 William E. Donoghue, Co, Inc. -- Brochure

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meetingyourinvestmentgoals

W.E. DONOGHUE & CO., INC.Registered Investment Advisor Since 1986


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Bill Donoghue, a 40-year veteran independent

investment expert, is the leading advocate of

successful proactive investment management

and sector rotation strategies which have

produced world-class returns for investors in

bull and bear markets.

Mr. Donoghues illustrious career as investment

strategist, best-selling author and pioneering

advocate of 100% income tax-free Roth IRAs

and VUL insurance with proactive investing has

positioned him as The Man With The Plan:

retirement with dignity.

W I L L I A M E . D O N O G H U E

Chairman of W. E. Donoghue & Co., Inc.


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Where can you turnfor sound advice?

At W. E. Donoghue & Co., Inc., we work

hard to learn and understand the latest

investment technology and strategies.

Often this means inventing our own

proprietary systems, processes and

procedures. All of our advice is directed

toward protecting, preserving and

growing your assets.

If youre like millions of todays investors, youve been

surprised -- and probably disappointed -- by the lackluster performance

of traditionally managed accounts. It doesnt matter whether youre in

a taxable or tax deferred retirement savings program. Technology,

the Internet, and a complex economy have seen some investors prosper

and others unnecessarily risk and lose hard-earned savings.

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W . E . D o n o g h u e & C o . , I n c . I 8 0 0 - 6 4 2 - 4 2 7 6 I w w w . d o n o g h u e . c o m2

Providing a Unique Perspectiveand Trusted Advice Since 1986W.E. Donoghue & Co., Inc. was founded in 1986 to

provide professional investment management servicesto individuals, corporations, and institutions, including

trusts, employee benefit plans and retirement plans.

We are a team of professional service advisors with

many years of combined experience in the financial

services industry.

We are passionately committed to assisting you build

a more secure future. Our goal is to help you maximize

all youve achieved in life. We believe its not only our

responsibility to help you protect and make the most

of your income and assets, but also to help you make

the most of your life.

We will work with you to understan

your current financial picture, talk

with you about the future you envisio

and together we will construct a

strategy to move you from today

to tomorrow. We offer a full range

of financial planning products and

services designed to help satisfy

your personal financial needs. Our

recommendations for your plan are independent, not

tied to any single financial company, so we can provideyou with a range of options.

You can expect the highest professional standards,

insightful and objective advice, and constant attention

to your account. Your money matters. Trust W. E.

Donoghue & Co., Inc. for prudent plans that span

volatile times and allow you to experience the financial

freedom you deserve.

Weve seen unprecedented growth in the

financial markets and expansion of the

mutual fund industry has been even more

dramatic. In addition to general, diversified

mutual funds, you now have a variety of

new choices. From exchange-traded funds,

country specific funds, industry sector funds,

enhanced index funds, to bull market funds,

bear market funds, and more. There are

greater opportunities than ever before.

But with these increased choices and

opportunities come greater complexities

and potential pitfalls. At W. E. Donoghue &

Co., Inc., we make sense of these exciting

new instruments and harness their

remarkable power for your benefit.

New Times,New Opportunities


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W . E . D o n o g h u e & C o . , I n c . I 8 0 0 - 6 4 2 - 4 2 7 6 I w w w . d o n o g h u e . c o m 3

Investment Objectives to Meet Your GoalsToday and TomorrowIn todays fast-paced information age,

obtaining investment data is easy: choosing

the investments that are right for you is much

more difficult. Yet this decision is vital to take

you to financial freedom. W. E. Donoghue &

Co., Inc. begins by performing a careful study

of your present situation. Well work with

you to identify your investment objectives,

evaluate your risk tolerance, and analyze

your current portfolio. After reviewing the

results with you, well recommend one of

our management strategies, or a combination

of our strategies, tailored to help meet your

individual needs and goals. This customized

approach combined with a closely monitored

investment portfolio is critical in todays

tactical market conditions.

your portfol io should represent theopt imum risk/reward tra deoff

Investment

Process:

A Continuum

AdviceConsulting &

Planning

Analysis& Design

PlanDevelopment

Implementation& PortfolioSelection

OngoingMonitoring &

Reporting

Increased longevity and improved lifestyles

have extended retirements; they often last

for 20 years or more. Todays retirees may

be challenged as no other recent generation

has. Many of our clients are concerned about

outliving their savings and sometimes the

wealthiest individuals can be the most vulnerab

More than ever before, retirees are dependen

upon their investments to generate retiremen

income. With fewer companies providing

traditional pension plans, retirees are being

forced to assume the investment risk associate

with their retirement assets.

To avoid a savings shortfall, it is critical to spen

the time now to help ensure that you will hav

the capital to afford the retirement lifestyle yo

desire. Well help you choose the best techniq

to accumulate wealth for retirement income a

offer sound strategies for income distribution

following retirement.

Advice Consulting & PlanningWe ask pertinent questions to discern

your goals and objectives.

Analysis & DesignWe review your current investments,

resources, risks and stated goals.

Plan DevelopmentWe make specific recommendations for

ways to help achieve your financial goals.

Implementation & Portfolio SelectionWe can help you ensure that your strategies

are carried out.

Ongoing Monitoring & ReportingWe will review your financial situation

and your changing circumstances.


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Mutual funds offer many unique advantages

advantages that are the building blocks of

your portfolio. These include a wide range of

investment objectives, diversification, liquidity,

professional stock selection, and disclosure of

management policies. Using mutual funds

within our investment strategies helps reduce

risk by providing instant diversification across

hundreds of securities within each asset class

and allows us to move assets overnight between

funds with little or no cost. We combine the

benefits of our portfolio strategies and assetclass selection with professional mutual fund

management to assist you in meeting your

investment objectives.

Our separately managed Portfolios provide

you with a wide range of choices for an

investment program fit to your particular

needs. These portfolios are actively managed

in light of changing economic conditions and

changes in the performance and availability of

the entire mutual fund marketplace.

The Donoghue Approaches


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Momentum TrendsThe most simplistic definition of a bull market is when a major stock index such as the

Standard & Poors 500 (S&P 500) rallies 20% from a prior low. A bear market is a 20%

decline from the most recent high. But in the current market environment, the

definitions that perhaps carry the greatest weight, and could effect investors

portfolios the most, involve so-called cyclical and secular market moves.

Simply put, a secular bull or bear market is one that can be measured in decades. They

are "once-in-a-generation" events. There have been four secular bulls and four secular

bears since 1900. This environment favors a buy-and-hold approach.

In contrast, a cyclical move is a market trend that lasts several months to a couple ofyears. There have been 33 cyclical bulls and 33 cyclical bears since 1900. This environment

favors a more active strategy.

These cycles provide the basis for W. E. Donoghue & Companys investment portfolios,

which we call our "reality based" investment approach. Reality based means that we

base our decisions on what the market is doing, not on opinion. We construct proprietary

models that track current market cycles and steer us toward the sectors of the market

that have the highest probability for success. We look to identify trends.

Technical Trend Analysis

Some of our investment portfolios makeuse of technical trend analysis. This strategy

identifies investment trends utilizing our

proprietary model system. This system

tracks the changing prices of securities

and identifies their momentum. Once the

securities with the greatest momentum

have been identified, relative strength is

employed to further identify those with the

greatest potential to continue their positive

momentum. These momentum models have

performed very well and offer an exciting

and powerful way for you to participate in

the constantly changing financial markets.

Tactical Asset Allocation

Tactical Asset Allocation seeks to reduce riskthrough diversification among different

investment categories. However, the selectio

or weighting of the investments are based o

those categories with the greatest potential

for returns, given current market conditions.

The allocation of assets becomes dynamic

changing in response to market conditions.

Investing in the right sector of the market

at the right time can dramatically increase

returns. Properly implemented, this strategy

should lessen your exposure to declining

markets, blunting the impact of bear market

and preserving capital and the majority of

prior gains. The objective is to reduce risk by

a greater amount than return is sacrificed an

achieve real growth after taxes and inflation

It is a strategy for managing risk without

unduly diminishing returns.


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The Donoghue Portfolios


Power Income Portfolio: This portfolio is designed to maintain long-term capital appreciationwhile producing high current returns. It invests primarily in high-yield bonds and money market

funds and utilizes our proprietary risk-reducing system, which moves investments between these

two asset classes to minimize losses during a downturn and maximize gains during upturns. This

model operates according to the momentum of the markets, and not on subjective judgments.

This portfolio is suitable for conservative investors who will need their funds within the next 6 to

24 months and whose primary goal is preservation of capital. This attractive alternative to buying

government or corporate bonds is often used in conjunction with other W.E. Donoghue portfolios

for the conservative portion of a larger portfolio.

All of our advice is directed

toward protecting, preserving

and growing your assets.

Long/Short Diversified Index Fund Portfolio: This portfolio is for investorswho seek to profit from proactive trading in both bull (rising) and bear (declinin

markets. It is composed of eight approximately equal fund positions that areselected according to relative strength and momentum. In bull markets, the

portfolios positions are chosen from a universe of 25 or more domestic sector,

index, or broad asset class funds. In bear markets, positions are chosen from

enhanced bear market index funds, which inversely mirror stock index

performance and are designed to go up in value when the market index goes

down. The universe of funds may consist of open-ended mutual funds, exchange

traded funds, or variable insurance sub-accounts.

This aggressive portfolio has excellent upside potential for patient investors

with a five- to ten-year time horizon.

Conservative Tactical Growth Portfolio: This portfolio is designed forinvestors who seek the upside potential of sector rotation into domestic

stocks coupled with defensive bond fund management. This actively

managed portfolio will rotate 50% of the assets amongst domestic sector

and index funds, broad asset class funds, and fixed income funds. The

rotating portion of the portfolio consists of a maximum of 10 funds from

a universe of at least 25 funds. The remaining 50% of the assets will be

defensively invested in bond funds and accompanied by our proprietary

risk-reducing system that moves assets to money market funds when

necessary. This portfolio has the ability to invest up to 80% of its assets

in fixed income funds. The universe of funds may consist of open-ended

mutual funds, exchange traded funds, or variable insurance sub-accounts.

The Conservative Tactical Growth Portfolio is designed to create a risk level

below that of the S&P 500. It is appropriate for investors with a relatively

low risk tolerance and a time horizon of three years or longer. It is an

excellent choice for the investor seeking a safe haven in a turbulent world,

but still desires upside potential.


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vis i t us on the web atwww.donoghue.com

Moderate Tactical Growth Portfolio: This portfolio is designed for investors who seek the upsidepotential of sector rotation into domestic stocks combined with defensive bond fund management.

This actively managed portfolio, which consists of a maximum of 10 funds from a universe of at least

25 funds, will rotate 75% of the assets amongst domestic sector funds, broad asset class funds, and

fixed income funds. The remaining 25% of the assets will be defensively invested in bond funds

and accompanied by our proprietary risk-reducing system that moves assets to money market funds

when necessary. This portfolio has the ability to invest up to 60% of its assets in fixed income funds,

and the universe of funds may consist of open-ended mutual funds, exchange traded funds, or

variable insurance sub-accounts.

The Moderate Tactical Growth Portfolio is designed to create a risk level equal to that of the S&P

500, but with greater upside potential. It is appropriate for investors with moderate risk tolerance

and a time horizon of three years or longer.

Diversified Global Sector Portfolio:

This portfolio is for investors who seek highmarket returns from an actively-managed

portfolio of sector, single country, regional,

international stock, fixed income, and money

market funds. The portfolio continuously

holds four funds from a universe of

approximately 25 funds and is designed to

track the continuing sector rotation of the

markets as well as the general moves among

stocks, bonds, and international markets.

The Diversified Global Sector Portfolio is

appropriate for investors with a high-risk

tolerance and a time horizon of five yearsor longer. It can exhibit short-term volatility

greater than the overall stock market, but

has excellent upside potential for those who

are able to commit their investments for a

longer period.

Aggressive Tactical Growth Portfolio:

This portfolio is designed for investors who seekmaximum returns from an actively traded portfolio.

It holds a maximum of ten funds from a universe

of at least 25 funds. The portfolio has the ability

to invest up to 40% of its assets in fixed income

funds, and the universe of funds may consist of

open-ended mutual funds, exchange traded funds,

or variable insurance sub-accounts.

The Aggressive Tactical Growth Portfolio is designed

to track the continuing sector rotation of the

markets as well as general moves among domestic

stocks and bonds. This portfolio is appropriate for

investors with a high-risk tolerance and a timehorizon of five years or longer. It can exhibit

short-term volatility greater than the overall

stock market, but has excellent upside potential

for those who are able to commit their investments

for a longer period.


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To Open an Account, Call (800) 642-4276and ask to speak with one of our investment

professionals. Well help you with the rest.

Its that easy.

Join W.E. Donoghue & Co., Inc.

Opening Your AccountYoull find that its easy to work with us. Your managed account is held in your

name at one of our custodians. Currently we work with a number of firms such as:

TD Waterhouse, Fidelity Investments Institutional Brokerage Group, Schwab Institutional,

FOLIOfn Investments, Inc., American Skandia Life Insurance Company, Nationwide Life

Insurance Company and Security Benefit Life Assurance Company. Once your account

has been established W. E. Donoghue & Co., Inc. is added to the account with a limited

power of attorney. We act as third party investment advisor which then authorizes us

to execute transactions on your behalf.

If, for any reason, you choose to close your managed account, all that is needed is

a 30-day advance written notice. This notice will be served as the effective date of

termination and will be the basis to determine the pro-rata refund of any unused

and previously paid management fees. There are no "exit fees" or other expenses

imposed by W. E. Donoghue & Co., Inc., for closing your account.

Your Personal Asset ManagerHelps You Make Informed ChoicesWith the assistance of a W.E. Donoghue & Co., Inc. professional

well work with you to identify your investment and financial

objectives, evaluate your risk tolerance, and analyze your current

portfolio. After reviewing the results with you well develop an

appropriate strategy and recommend various scenarios tailored to

help meet your individual needs and goals. This customized approach

combined with a closely monitored investment strategy is critical to

help you meet your goals in todays market conditions.

You can expect the highest professional standards, insightful and

objective advice, and constant attention to your account. Our plans

can span volatile times and allow you to experience the financial

freedom you deserve.


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For additional information about howW.E. Donoghue & Co., Inc. can helpyou achieve your goals, visit our website:

www.donoghue.com


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260 North Main Street I Natick, Massachusetts 01760 I phone: 800-642-4276 I fax: 774-290-0006

e-mail: [email protected] I website: www.donoghue.com

Documents

William E. Donoghue, Co, Inc. -- Brochure