EQTIX Receives 5-Star Rating and Gold Medalist Fund Recognition from Morningstar
Denver, October 30, 2024 – Shelton Capital Management (“Shelton”), a multi-strategy asset manager with more than $5.5 billion in assets under management, is pleased to announce that the Shelton Equity Income Fund (EQTIX) has been awarded both a Morningstar Gold Medalist* designation and an Overall Morningstar RatingTM of 5 stars among 77 Derivative Income funds, based on risk-adjusted returns, as of 9/30/2024.**
According to Morningstar, “A sound investment process and strong management team underpin Shelton Equity Income Investor’s Morningstar Medalist Rating of Gold. The most important driver of the rating is the fund’s excellent long-term risk-adjusted performance. This can be seen in its five-year alpha calculated relative to the category index, which suggests that the managers have shown skill in their allocation of risk. The portfolio [also] maintains a sizable cost advantage over competitors, priced within the second-cheapest fee quintile among peers.”
“We are proud to receive Morningstar’s highest ratings,” said Barry Martin, Lead Portfolio Manager of the Shelton Equity Income Fund. “In this market, income investors need an edge and our approach to generating cash flow and capital appreciation has consistently delivered for our investors.”
The Fund’s investment objective is to achieve a high level of income and capital appreciation (when consistent with high income) by investing primarily in income-producing U.S. equity securities.
“Instead of writing broad index calls, we write calls on individual, blue-chip securities. This allows us to be more nimble when executing for our shareholders and is one of the reasons we have achieved this Morningstar ranking,” Martin added.
In March of this year, the covered-call fund category (both mutual funds and ETFs) totaled more than $84.6 billion in assets, up from $53.6 billion the prior year and $5.1 billion a decade ago, according to Morningstar.
Volatility is expected to remain elevated for the rest of 2024 with a presidential election and a myriad of high-level geo-political risks and concerns. The Fund offers a compelling solution that seeks to deliver a high level of cash flow while insulating the portfolio. EQTIX has paid dividends since 1997 and as of September 30th, the Fund’s 12-month Morningstar TTM Yield is 8.61%. Additionally, EQTIX’s total return for the 3-year, 5-year, 10-year period ending on 9/30/24 are in the top quartile of its Morningstar Derivative Income category.
Martin, who has over 20 years of experience in the investment management industry focusing on options, leads the Fund’s management team, which has over 50 years of combined research and trading experience.
About Shelton Capital Management
Shelton Capital Management is a multi-strategy asset manager delivering sophisticated investment solutions and acts as a co-fiduciary on employer-sponsored retirement plans as a 3(38) advisor. Founded in 1985, Shelton Capital Management has maintained consistent investment principles and a steadfast focus on authentic customer service. Shelton Capital Management manages over $5.5 billion of assets as of September 30, 2024. For additional information, please call (800) 955-9988.
Important Information
Investors should consider a fund’s investment objectives, risks, charges, and expenses carefully before investing. The prospectus contains this and other information about the fund. To obtain a prospectus, visit www.sheltoncap.com or call (800) 955-9988. A prospectus should be read carefully before investing.
It is possible to lose money by investing in a fund. Past performance does not guarantee future results. Any projections or other forward-looking statements regarding future events or performance of markets, companies, or otherwise are not necessarily indicative or differ from, actual events or results.
Fund information is not intended to represent future portfolio composition. Portfolio holdings are subject to change and should not be considered a recommendation to buy individual securities. The Fund is subject to several risks, any of which could cause the Fund to lose money. These risks, which are described more fully in the prospectus, include stock market risk, economic and political events risks, sector risks, large and medium sized company risks and value investing risks. Distributions may include ordinary dividends, interest income, capital gains, or return of capital.
Options involve risk and are not suitable for everyone. Prior to buying or selling an option, your client must receive a copy of CHARACTERISTICS AND RISKS OF STANDARDIZED OPTIONS.
Investments in derivatives may be risker than other types of investments. They may be more sensitive to changes in economic or market conditions than other types of investments. Many derivatives create leverage, which could lead to greater volatility and losses that significantly exceed the original investment. Positions in equity options can reduce equity market risk, but can limit the opportunity to profit from an increase in the market value of stocks in exchange for upfront cash as the time of selling the call option. Unusual market conditions or the lack of a ready market for any particular option at a specific time may reduce the effectiveness of option strategies and could result in losses. Investors can lose premium paid to purchase the option if it is not exercised.
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*Morningstar Medalist Rating Methodology
**The fund’s Morningstar three-, five-, ten-year ratings respectively, 5 stars, 5 stars, 5 stars among 77, 67, 37 funds.
