Portfolio Managers: Paula Jurcenko
Question:
How Did Your Fund Perform This Quarter?
Answer:
The Huntington Balanced Allocation Fund Class A Shares had a total return of 8.13% at NAV through the quarter ended September 30, 2010. This compares with the
11.29% return experienced by its benchmark, the S&P 500 Index (S&P 500), and 7.77% return of the Balanced Allocation Indices Blend for the same time period.
(Click Fund name above to obtain standard fund performance).
Performance data quoted represents past performance which is no guarantee of future results. Investment return and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Performance shown does not reflect the following sales charges: Class A Shares of all equity funds and asset allocation funds have a maximum sales charge of 4.75%; Class A Shares of fixed-income funds have a maximum sales charge of 3.75% except for Short/Intermediate Fixed Income Securities Fund which has a maximum sales charge of 1.50%. If reflected, performance would be lower.
Mutual fund performance changes over time and current performance may be lower or higher than what is stated. For current to the most recent month end performance, view the Fund Performance page of this website.
Question:
Why Did Your Fund Perform This Way?
Answer:
The manager utilized optimization software and both internal and external research, to analyze the economy and the capital markets to determine the optimal allocations to the Underlying Funds. This resulted in two tactical allocation changes during the quarter ended September 30, 2010. In early July, the Fund reduced its Equity exposure by 3% and increased its exposure to cash. Again in September, there was an opportunity to take an advantage of a market rally and further reduce the Fund's Equity exposure to neutral and increase exposure to Fixed Income. The Fund underperformed its benchmark, the S&P 500, but outperformed it blended benchmark. We believe the tactical allocation changes we made this past quarter will be beneficial for the Fund going forward.
At the end of the third quarter, the Balanced Allocation Fund had an allocation of 59.7% to equity funds. Of particular importance to the performance of the Fund were the two largest equity fund holdings in the portfolio, the Huntington International Equity Fund (12.6% of the portfolio) and the Huntington Macro 100 Fund (8.9% of the portfolio).
For the quarter ended September 30, 2010, the Huntington International Equity Fund Trust shares returned 14.91%, which underperformed the 16.48% return of its benchmark, the MSCI Europe, Australasia and Far East Index (EAFE) for the same period, while the Huntington Macro 100 Fund Trust shares returned 8.83%, which underperformed the 11.29% return of its benchmark, the S&P 500 Index.
Of the 348% allocation to fixed-income funds, the largest fixed-income holding (16.7% of the portfolio) was represented by the Huntington Fixed Income Securities Fund Trust shares which had a return of 2.58% compared to the 3.28% return of its benchmark, the Barclays Government/Credit Index, for the same time period. For more insight into the performance of the these Funds and other Huntington Funds held in the Balanced Allocation Fund, please feel refer to the individual Fund Commentaries.
TOP
Portfolio Managers: Paula Jurcenko
Question:
How Did Your Fund Perform This Quarter?
Answer:
The Huntington Conservative Allocation Fund Class A shares had a total return of -2.26% at NAV through the quarter ended June 30, 2011. This compares with the 3.82% return experienced by its benchmark, the Barclays US Aggregate Bond Index for the same time period and 0.28% for the Conservative Allocation Indices Blend. (Click Fund name above to obtain standard fund performance).
Performance data quoted represents past performance which is no guarantee of future results. Investment return and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Performance shown does not reflect the following sales charges: Class A Shares of all equity funds and asset allocation funds have a maximum sales charge of 4.75%; Class A Shares of fixed-income funds have a maximum sales charge of 3.75% except for Short/Intermediate Fixed Income Securities Fund which has a maximum sales charge of 1.50%. If reflected, performance would be lower.
Mutual fund performance changes over time and current performance may be lower or higher than what is stated. For current to the most recent month end performance, view the Fund Performance page of this website.
Question:
Why Did Your Fund Perform This Way?
Answer:
The manager utilized optimization software and both internal and external research, to analyze the economy and the capital markets to determine the optimal allocations to the Underlying Funds. The third quarter was marked by investor uncertainty as international geo-politics diverged asset prices from underlying fundamentals. Macro uncertainty coupled with market volatility led to the deterioration of both short and long term trends, lending any tactical changes to extreme market timing rather than actual value-added tactical shifts. Therefore, no tactical asset allocation changes were initiated this last quarter. However, a non-strategic move was made to reduce the cash allocation from 3% to 1% to offset the cash exposure in the underlying holdings. Overall, we believe the asset allocation mix will be beneficial for the Fund going forward.
At the end of the third quarter, The Conservative Allocation Fund had an allocation of 75.0% to fixed-income funds. The largest fixed-income holding and best asset-weighted performer (15.6% of the portfolio) was represented by the Huntington Fixed Income Securities Fund Trust shares which had a return of 3.3% compared to the 4.7% return of its benchmark, the Barclays Government/Credit Index, for the same time period.
For the 23.9% allocation to equity funds, of particular importance was the best asset-weighted performer in the portfolio, the Huntington Dividend Capture Fund (1.6% of the portfolio). For the quarter ended September 30, 2011, the Huntington Dividend Capture Fund Trust shares returned -9.6%, which outperformed the -13.9% return of its benchmark, the S&P 500 Index for the same period.
For more insight into the performance of these Funds and other Huntington Funds held in the Conservative Allocation Fund, please feel refer to the individual Fund Commentaries.
TOP
Portfolio Managers: Kirk Mentzer
Question:
How Did Your Fund Perform This Quarter?
Answer:
For the second quarter ended September 30, 2011, the Huntington Dividend Capture Fund attained a total return of -9.67% at NAV for Investment A Shares. This compares with the -13.87% return experienced by its benchmark the Standard & Poor's 500 Index (S&P 500) for the same period. The Huntington Dividend Capture Fund's Class A Shares outperformed the benchmark by 4.20%. In terms of measuring performance against an unmanaged index, we have created a custom index, the Dividend Capture Indices Blend (DCIB). The DCIB produced a total return of -10.78% for the three-month reporting period. (Click Fund name above to obtain standard fund performance).
Performance data quoted represents past performance which is no guarantee of future results. Investment return and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Performance shown does not reflect the following sales charges: Investment A Shares of all equity funds and asset allocation funds have a maximum sales charge of 4.75%; Investment A Shares of fixed-income funds have a maximum sales charge of 3.75% except for Short/Intermediate Fixed Income Securities Fund which has a maximum sales charge of 1.50%. If reflected, performance would be lower.
Mutual fund performance changes over time and current performance may be lower or higher than what is stated. For current to the most recent month end performance, view the Fund Performance page of this website.
Question:
Why Did Your Fund Perform This Way?
Answer:
The Huntington Dividend Capture Fund invests in dividend paying stocks from three distinct asset classes: common stocks, REITs, and preferred shares.
> Value-style common stocks: During the third quarter, domestic equity markets as measured by the S&P 500 declined 13.9%. Continued world economic and policy worries mentioned above resulted in a massive flight to quality. Our measure of high quality stocks lost 7.4% while the lowest quality names fell 21%. Stable/defensive sectors such as utilities, consumer staples, technology, telecom and healthcare were the best performers, with cyclical areas suffering substantial losses. Value stocks generally underperformed during the quarter compared to growth-style stocks and the S&P 500.
> Real Estate Investment Trusts (REIT)*: Real Estate markets underperformed on a relative and absolute basis during the quarter. Total returns for REITs came in at -15.1% during the quarter. However, we remain underweight this asset class due to high valuation, peaking earnings growth, and dividend yields that were comparable to value stocks. REITs have enjoyed extremely strong performance since the March 2009 bottom, nearly doubling the return of value stocks.
>Preferred Stock**: Preferred share performance was a relative bright spot for Dividend Capture this quarter with a -3.1% total return. While credit spreads widened moderately, the stable return profile of preferred shares provided less downside than other markets. With high dividend yields combined with low share price volatility, preferred shares were stronger other market segments such as REITs.
Trading activity was responsible for -0.41% of the performance relative to the benchmark, while portfolio structure had a positive impact of 7.1%. Portfolio structure can be explained by adding Security Characteristics: 7.93%, Sector Allocation 0.09% and Security Selection -1.92%.
*REIT returns represented by the NAREIT Index.
** Preferred returns represented by the Merrill Lynch US Fixed Rate Preferred Stock Index.
TOP
Portfolio Managers: Paul Attwood
Question:
How Did Your Fund Perform This Quarter?
Answer:
The Huntington Global Select Markets Fund Class A Shares had a total return of -21.88% at NAV, for the quarter ended September 30th , 2011 compared to return of the MSCI Emerging Markets Index of -22.56% for the same time period. The Huntington Global Select Markets Class A shares outperformed the benchmark by 0.68%. (Click Fund name above to obtain standard fund performance).
Performance data quoted represents past performance which is no guarantee of future results. Investment return and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Performance shown does not reflect the following sales charges: Class A Shares of all equity funds and asset allocation funds have a maximum sales charge of 4.75%; Class A Shares of fixed-income funds have a maximum sales charge of 3.75% except for Short/Intermediate Fixed Income Securities Fund which has a maximum sales charge of 1.50%. If reflected, performance would be lower.
Mutual fund performance changes over time and current performance may be lower or higher than what is stated. For current to the most recent month end performance, view the Fund Performance page of this website.
Question:
Why Did Your Fund Perform This Way?
Answer:
Answer: September was a particularly bad month for the developing markets. Countries where the Fund has tended to focus held up extremely well until the last few weeks of the quarter. At that point, global risk was being reduced at a rapid pace and some of the markets that were still positive on the year followed all the other global asset classes and sold off.
Fixed-Income holdings in the Fund helped to reduce volatility slightly, along with an overweight position in Indonesia, which on a relative basis continued to be the best performing growth market.
All sectors within the MSCI Emerging Markets index are down year-to-date. On a relative basis, Consumer Staples and Telecom held up the best, down 9.82% and 9.53% respectively. Hardest hit was the Industrial sector, down 31.73%.
Indonesian bonds held by the Fund were the best performing securities during the quarter. They continued to provide an attractive yield and have proven to reduce overall Fund volatility. Positions like Hyundai Heavy Industries Co., Ltd, the world's largest shipbuilding company and Wynn Macaus Ltd, a luxury resort in China, which were down -0.97% and -0.95%, respectively had the largest negative effect on the Fund's performance. These represented 2.4% and 1.8% of the portfolio as of September 30, 2011.
Global markets have gone through an unprecedented amount of volatility over the last few months. When investors start to question the ability of a sovereign nation to pay its bills, as is the present situation with Greece, they tend to sell first and ask questions later. As fear increases, volatility, liquidity and correlation of assets are all negatively affected. This is what we witnessed in the latter part of the third quarter. Although a global slowdown will have an impact on the growth rates of developing nations, we believe many of these countries have discounted a slowdown and provide valuations that offer tremendous opportunity for the future. We have been opportunistic during the quarter in an attempt to use the volatility to our advantage. We will continue to do this as we move forward in order to purchase extraordinarily attractive assets at a discount to their intrinsic value and to expose the Fund to investment themes that are, at this point, only in their infancy.
TOP
Portfolio Manager: Herb Chen
Question:
How Did Your Fund Perform This Quarter?
Answer:
The Huntington Growth Fund Class A shares had a total return of -14.29% at NAV for the quarter ended September 30, 2011. This compares with the -11.56% return experienced by its benchmark, the Standard & Poors 500 Growth Index (S&P 500 Growth) for the same period. The Huntington Growth Class A shares underperformed the benchmark by -2.73%. (Click Fund name above to obtain standard fund performance).
Performance data quoted represents past performance which is no guarantee of future results. Class return and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Performance shown does not reflect the following sales charges: Class A Shares of all equity funds have a maximum sales charge of 5.75%; Class A Shares of fixed-income funds have a maximum sales charge of 4.75% except for Short/Intermediate Fixed Income Securities Fund which has a maximum sales charge of 1.50%. If reflected, performance would be lower.
Mutual fund performance changes over time and current performance may be lower or higher than what is stated. For current to the most recent month end performance, view the Fund Performance page of this website.
Question:
Why Did Your Fund Perform This Way?
Answer:
Trading activity was responsible for 1.05% of the performance relative to the benchmark, while portfolio structure had a negative impact of -3.74%. Portfolio structure can be explained by adding Security Characteristics: -0.41%, Sector Allocation: 0.02% and Security Selection: -3.34%.
The three holdings that had the largest positive contribution to the Fund's performance and their percentage of total net assets were Apple (6.4%), Nordstrom Inc. (1.3%) and Altria Group Inc (0.6%) as of September 30, 2011. These three holdings added 0.69% to the Fund's return. The three holdings that had the largest negative contribution to the Fund's performance and their percentage of total net assets were EMC Corp. (1.9%), Baidu Inc. ADS (2.3%) and CARBO Ceramics Inc. (1.4%) as of September 30, 2011. These three holdings subtracted -2.13% from the Fund's return.
TOP
Portfolio Manager: Paula Jurcenko
Question:
How Did Your Fund Perform This Quarter?
Answer:
The Huntington Growth Allocation Fund Class A Shares had a total return of -13.04% at NAV through the quarter ended September 30, 2011. This compares with the
-13.87 % experienced by its benchmark, the S&P 500 Index (S&P 500) and the
-10.33% return of the Growth Allocation Indices Blend, for the same time period. (Click Fund name above to obtain standard fund performance).
Performance data quoted represents past performance which is no guarantee of future results. Investment return and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Performance shown does not reflect the following sales charges: Class A Shares of all equity funds have a maximum sales charge of 4.75%; Class A Shares of fixed-income funds have a maximum sales charge of 3.75% except for Short/Intermediate Fixed Income Securities Fund which has a maximum sales charge of 1.50%. If reflected, performance would be lower.
Mutual fund performance changes over time and current performance may be lower or higher than what is stated. For current to the most recent month end performance, view the Fund Performance page of this website.
Question:
Why Did Your Fund Perform This Way?
Answer:
The manager utilized optimization software and both internal and external research, to analyze the economy and the capital markets to determine the optimal allocations to the Underlying Funds. The third quarter was marked by investor uncertainty as international geo-politics diverged asset prices from underlying fundamentals. Macro uncertainty coupled with market volatility led to the deterioration of both short and long term trends, lending any tactical changes to extreme market timing rather than actual value-added tactical shifts. Therefore, no tactical asset allocation changes were initiated this last quarter. However, a non-strategic move was made to reduce the cash allocation from 3% to 1% to offset the cash exposure in the underlying holdings. Overall, we believe the asset allocation mix will be beneficial for the Fund going forward.
At the end of the third quarter, the Growth Allocation Fund had an allocation of 85.3% to equity funds. Of particular importance to the equity allocation of the Fund were the two best asset-weighted performers in that asset class, the Huntington Dividend Capture Fund (4.2% of the portfolio) and the Huntington New Economy Fund (3.0% of the portfolio). For the quarter ended September 30, 2011, the Huntington Dividend Capture Fund Trust shares returned -9.6%, which outperformed the -13.8% return of its benchmark, the S&P 500 Index for the same period, while the Huntington New Economy Fund Trust shares returned -14.0%, which outperformed the -18.8% return of its benchmark, the S&P 400 Growth Index.
Of the 13.6% allocation to fixed-income funds, the largest fixed-income holding and best asset weighted performer (6.2% of the portfolio) was represented by the Huntington Fixed Income Securities Fund Trust shares which had a return of 3.3% compared to the 4.7% return of its benchmark, the Barclays Government/Credit Index, for the same time period.
For more insight into the performance of these Funds and other Huntington Funds held in the Growth Allocation Fund, please feel refer to the individual Fund Commentaries.
TOP
Portfolio Managers: Craig Hardy
Question:
How Did Your Fund Perform This Quarter?
Answer:
The Huntington Income Equity Fund provided a total return of -13.29% for the quarter ended September 30, 2011 for Class A Shares at NAV. This figure compares with a total return of -16.30% for the Standard & Poor's 500 Value Index, the Fund's benchmark, for the same time period. The Huntington Income Equity Fund Class Shares outperformed the benchmark by 3.01%. (Click Fund name above to obtain standard fund performance.)
Performance data quoted represents past performance which is no guarantee of future results. Investment return and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Performance shown does not reflect the following sales charges: Class A Shares of all equity funds and asset allocation funds have a maximum sales charge of 4.75%; Class A Shares of fixed-income funds have a maximum sales charge of 3.75% except for Short/Intermediate Fixed Income Securities Fund which has a maximum sales charge of 1.50%. If reflected, performance would be lower.
Mutual fund performance changes over time and current performance may be lower or higher than what is stated. For current to the most recent month end performance, view the Fund Performance page of this website.
Question:
Why Did Your Fund Perform This Way?
Answer:
The third quarter of 2011 saw continued growth in the U.S. economy, at a somewhat faster rate than was experienced in the first half of the year, due to broad-based expansion of consumer and business spending and exports. Although inflation rose during the quarter, longer-term interest rates declined, finishing somewhat lower than where they had begun. Due to a flight to quality occasioned by the European sovereign debt crisis, rates on longer-term U.S. Treasury bonds fell to levels not seen in over sixty years. Against this economic backdrop, the stock market, as measured by the broad market indices, dropped sharply during late July and early August, then fluctuated within a trading range for the rest of the quarter, with the S&P 500 Index posting a total return of -13.87%% for the quarter.
Large cap value stocks, as measured by the S&P 500 Value Index, performed in a similar manner, although returns in the value sector were lower than the broader market, with the S&P 500 Value Index posting a -16.30% total return for the quarter. The Huntington Income Equity Fund, which invests in large cap value stocks with above-average yields, recorded somewhat better returns, with its A class shares at NAV returning -13.29% for the same period. This number bested that of its primary benchmark, the S&P 500 Value Index, by 3.0%, and topped the S&P 500 Index return by a small margin.
During the third quarter, the Fund was positioned relatively conservatively, with an emphasis on stocks with above-average dividend yields, reasonable dividend growth prospects and value orientation. Constructing the Fund with those characteristics meant that the Fund's largest sector exposure during the quarter was in the Energy sector, with the Financial sector about a percentage point behind. The Fund's performance was enhanced most notably by its investments in the Utilities, Telecommunications and Consumer Staples sectors, and was enhanced least by its investments in Energy, Financial and Industrial stocks.
Trading activity was responsible for -0.02% of the performance relative to the benchmark, while portfolio structure had a positive impact of 3.12%. Portfolio structure can be explained by adding Security Characteristics: 4.04%, Sector Allocation: -0.13% and Security Selection: -0.79%.
The three holdings that had the largest positive contribution to the Fund's performance and their percentage of total net assets as of September 30, 2011, were Kimberly-Clark (1.7%), PPL Corp. (0.0%) and Ameren Corp (0.0%). These three holdings added 0.38% to the Fund's return. The three holdings that had the largest negative contribution to the Fund's performance and their percentage of total net assets as of September 30, 2011, were Seagate Technology (0.0%), NYSE Euronext (1.3%) and R.R. Donnelley& Sons Co. (1.7%). These three holdings subtracted -1.63% from the Fund's return.
TOP
Portfolio Manager: Madelynn Matlock
Question:
How Did Your Fund Perform This Quarter?
Answer:
The Huntington International Equity Fund Class A Shares had a total return of -19.23% at NAV, for the quarter ended September 30, 2011. This compares with the -19.01% return experienced by its benchmark, the MSCI Europe, Australasia and Far East Index (EAFE) for the same time period. The Huntington International Equity Class A Shares underperformed the benchmark by .22%.
(Click Fund name above to obtain standard fund performance).
Performance data quoted represents past performance which is no guarantee of future results. Investment return and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Performance shown does not reflect the following sales charges: Class A Shares of all equity funds and asset allocation funds have a maximum sales charge of 4.75%; Class A Shares of fixed-income funds have a maximum sales charge of 3.75% except for Short/Intermediate Fixed Income Securities Fund which has a maximum sales charge of 1.50%. If reflected, performance would be lower.
Mutual fund performance changes over time and current performance may be lower or higher than what is stated. For current to the most recent month end performance, view the Fund Performance page of this website.
Question:
Why Did Your Fund Perform This Way?
Answer:
The factors that produced the underperformance of the Huntington International Equity Fund for the quarter ended September 30, 2011 were mainly due to sector allocation. The portfolio's less than index exposure to the euro and the Australian dollar, both of which were weak, aided relative performance.
Stocks in the portfolio that did well include Unicharm, a Japanese personal products company and Japan Real Estate Investment Corp, a Japanese REIT. Hoya Corp., a Japanese technology producer, also did well. Lagging stocks were European financials AXA and BNP Paribas, as well as industrials Keppel from Singapore and German equipment maker GEA Group. The portfolio's holdings largely moved together during the quarter, in which markets were negatively impacted by fears about European sovereign debt quality.
The three holdings that had the largest positive contribution to the Fund's performance and their percentage of total net assets, as of September 30, 2011, were Unicharm at 1.07%, Japan Real Estate Investment. at 1.04% and Hoya at 1.1%. These three holdings added .11% to the Fund's return. The three holdings that had the largest negative contribution to the Fund's performance and their percentage of total net assets, as of September 30, 2011, were AXA SA at 1.39%, GEA Group at 1.93%, and Keppel Corp. at 1.97%. These three holdings subtracted 2.14% from the Fund's return.
TOP
Portfolio Manager: Christopher M. Rowane, CFA
Question:
How Did Your Fund Perform This Quarter?
Answer:
The Huntington Mid Corp America Fund total return was -18.53% at NAV for Class A Shares for the quarter ended June 30, 2011. This compares with the -19.88% return experienced by its benchmark, the Standard & Poor's MidCap 400 Index (S&P 400) for the same period. The Huntington Mid Corp America Class A Shares underperformed the benchmark by 1.04%. (Click Fund name above to obtain standard fund performance).
Performance data quoted represents past performance which is no guarantee of future results. Investment return and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Performance shown does not reflect the following sales charges: Class A Shares of all equity funds and asset allocation funds have a maximum sales charge of 4.75%; Class A Shares of fixed-income funds have a maximum sales charge of 3.75% except for Short/Intermediate Fixed Income Securities Fund which has a maximum sales charge of 1.50%. If reflected, performance would be lower.
Mutual fund performance changes over time and current performance may be lower or higher than what is stated. For current to the most recent month end performance, view the Fund Performance page of this website.
Question:
Why Did Your Fund Perform This Way?
Answer:
Trading activity was responsible for -0.1% of the performance relative to the benchmark, while portfolio structure had a positive impact of 1.31%. Portfolio structure can be explained by adding Security Characteristics: 1.65%, Sector Allocation: -0.07% and Security Selection: -0.27%.
The three holdings that had the largest positive contribution to the Fund's performance and their percentage of total net assets as of September 30, 2011, were Church & Dwight Co. (2.2%), InterDigital Inc. (0.2%) and VF Corp (1.5%). These three holdings added 0.50% to the Fund's return.
The three holdings that had the largest negative contribution to the Fund's performance and their percentage of total net assets as of September 30, 2011, were Citrix Systems Inc. (1.8%), Thermo Fisher Scientific Inc. (2.7%) and L-3 Communications Holdings Inc. (1.0%). These three holdings subtracted -1.71% from the Fund's return.
The Fund held a higher allocation to cash and defensive stocks during the quarter. The Fund was the beneficiary of some M&A opportunities as larger companies looked to expand their revenue base. We believe the positions that were subjected to the most negative returns should see a technical bounce as earnings continue to provide a positive theme to the group.
TOP
Portfolio Manager: Randy Hare
Question:
How Did Your Fund Perform This Quarter?
Answer:
The Huntington New Economy A class shares had a total return of -14.06% at NAV for the period 6/30/2011 to 9/30/2011. This compares with the -18.83% return experienced by its benchmark, the Standard & Poors 400 Growth (S&P 400 Growth) for the same period. The Huntington New Economy A class shares outperformed the benchmark by 4.77%. (Click Fund name above to obtain standard fund performance).
Performance data quoted represents past performance which is no guarantee of future results. Class return and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Performance shown does not reflect the following sales charges: Class A Shares of all equity funds and asset allocation funds have a maximum sales charge of 4.75%; Class A Shares of fixed-income funds have a maximum sales charge of 3.75% except for Short/Intermediate Fixed Income Securities Fund which has a maximum sales charge of 1.50%. If reflected, performance would be lower.
Mutual fund performance changes over time and current performance may be lower or higher than what is stated. For current to the most recent month end performance, view the Fund Performance page of this website.
Question:
Why Did Your Fund Perform This Way?
Answer:
Trading activity was responsible for 5.52% of the performance relative to the benchmark, while portfolio structure had a negative impact of -0.71%. Portfolio structure can be explained by adding Security Characteristics: 0.25%, Sector Allocation: -1.06% and Security Selection: 0.1%.
The three holdings that had the largest positive contribution to the Fund's performance and their percentage of total net assets were Westport Innovations Inc. (3.6%), Dollar Tree Inc. (3.7%) and Cerner Corp. (3.1%). These three holdings added 1.09% to the Fund's return. The three holdings that had the largest negative contribution to the Fund's performance and their percentage of total net assets were Key Energy Services Inc (0.0%). Complete Production Services Inc. (1.5%) and Baker Hughes Inc. (1.4%). These three holdings subtracted -3.8% from the Fund's return.
Following Huntington Asset Advisor's sector weighting guidelines, the Fund remained overweight Energy and Consumer Staples and remained underweight Materials. Energy was one of the worst performing sectors while the Consumer Staples sector was one of the better performing sectors. Security selection had a positive influence on the relative performance for the quarter. We believe the long-term macro trends will once again favor companies enhancing productivity as a means to grow earnings, as the GDP growth remains below historical trends and input costs continue to rise.
TOP
Portfolio Manager: Kirk Mentzer
Question:
How Did Your Fund Perform This Quarter?
Answer:
For the third quarter ended September 30, 2011, the Huntington Fixed Income Securities Fund attained a total return of 3.32% at NAV for Class A Shares. During this period, the Barclays Government/Credit Bond Index experienced a total return of 4.74%. (Click Fund name above to obtain standard fund performance).
Performance data quoted represents past performance which is no guarantee of future results. Investment return and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Performance shown does not reflect the following sales charges: Investment A Shares of fixed-income funds have a maximum sales charge of 3.75% except for Short/Intermediate Fixed Income Securities Fund which has a maximum sales charge of 1.50%. If reflected, performance would be lower.
Mutual fund performance changes over time and current performance may be lower or higher than what is stated. For current to the most recent month end performance, view the Fund Performance page of this website.
Question:
Why Did Your Fund Perform This Way?
Answer:
For the quarter ended September 30, 2011, The Huntington Fixed Income Fund underperformed its benchmark. Continued world economic and policy worries mentioned above resulted in a massive flight to quality during the third quarter. Treasury yields fell across all maturities. As a result, broad market indices (Barclays Government/Credit Bond Index) produced a total return of +4.74% during the period. While the US Treasury market generated a robust +6.36% total return, all other sectors trailed. Corporate bonds in particular struggled to keep pace, falling far short of Treasury returns by -5.5%. The simple story is Treasury yields declined significantly, but corporate and municipal bond yields dropped only slightly. This resulted in muted price appreciations for investors outside of Treasury securities.
The Huntington Fixed Income Fund utilizes a benchmark, which tends to have a longer average maturity than its peer group. Compared to the Lipper Intermediate Investment Grade Debt Funds, the Huntington Fixed Income Fund landed in the top 18 percentile for the quarter. However, in the most recent quarter, we were positioned for higher interest rates and inflation rather than lower. As a result, the Fund underperformed its benchmark.
Lipper rankings are based on Total Return and do not take sales charges into account.
Performance data quoted represents past performance which is no guarantee of future results.
For the 1-, 3-, 5- and 10-year time periods ended 9/30/11 the Huntington Fixed Income Securities Fund Class A ranked 448 out of 584 funds, 412 out of 495 funds, 223 out of 394 funds and 196 out of 275 funds, respectively.
The Fund traditionally holds high weightings of securities in the benchmark. While general sector weights will mirror strategy guidelines, individual names can be substantially more or less weighted than the benchmark. Thus, the Fund attempts to select the best combination of risk and return regardless of benchmark allocations.
TOP
Portfolio Manager: William Doughty
Question:
How Did Your Fund Perform This Quarter?
Answer:
The Huntington Intermediate Government Income Fund Class A Shares had a total return of 2.48% at NAV for the quarter ended September 30 2011, which compared to the total return for the Barclays Capital Intermediate Govt. Credit Index return of 2.30%. The Barclays Index has a mix of corporate bonds with a higher risk profile than the Huntington Intermediate Government Income Fund, which consists of only government, agencies and mortgage- backed securities. (Click Fund name above to obtain standard fund performance).
Performance data quoted represents past performance which is no guarantee of future results. Investment return and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Performance shown does not reflect the following sales charges: Class A Shares of all equity funds and asset allocation funds have a maximum sales charge of 4.75%; Class A Shares of fixed-income funds have a maximum sales charge of 3.75% except for Short/Intermediate Fixed Income Securities Fund which has a maximum sales charge of 1.50%. If reflected, performance would be lower.
Mutual fund performance changes over time and current performance may be lower or higher than what is stated. For current to the most recent month end performance, view the Fund Performance page of this website.
Question:
Why Did Your Fund Perform This Way?
Answer:
For the quarter ended September 30, 2011, The Huntington Intermediate Government Income Fund outperformed the Barclays Capital Intermediate Govt/Credit Index due to the outperformance of Treasuries and Agencies compared to Corporate Bonds during the period. According to BofA Merrill Lynch, Corporate bonds had a return of 2.26%, while Treasuries had a return of 6.36%, respectfully. Agencies had a return of 2.84 %. The Fund's performance had a positive impact with a 53% weighting in Agencies. Mortgage- backed securities had a positive impact on performance of the Fund with a return of 2.32%. The portfolio was much more risk adverse than its benchmark, which had a positive impact on the return, as investors were worried about the situation in Europe and the slowing of the economy in the U.S. The Huntington Intermediate Government Income Fund consists of Treasuries, Agencies, and mortgage-backed securities.
TOP
Portfolio Manager: William Doughty
Question:
How Did Your Fund Perform This Quarter?
Answer:
The Huntington Short/Intermediate Fixed Income Securities Fund Class A Shares had a return of .32% at NAV for the quarter ended September 30, 2011. This compared to the total return for the BofA ML 1-5 Year U.S. Corporate/Government Credit Index, which returned .83%. (Click Fund name above to obtain standard fund performance).
Performance data quoted represents past performance which is no guarantee of future results. Investment return and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Performance shown does not reflect the following sales charges: Class A Shares of all equity funds and asset allocation funds have a maximum sales charge of 4.75%; Class A Shares of fixed-income funds have a maximum sales charge of 3.75% except for Short/Intermediate Fixed Income Securities Fund which has a maximum sales charge of 1.50%. If reflected, performance would be lower.
Mutual fund performance changes over time and current performance may be lower or higher than what is stated. For current to the most recent month end performance, view the Fund Performance page of this website.
Question:
Why Did Your Fund Perform This Way?
Answer:
For the third quarter ended September, 2011, the Huntington Short/Intermediate Fixed Income Securities Fund underperformed its benchmark the BofA ML 1-5 Year U.S. Corporate/Government Credit Index. This was due to the overweight in both Corporate, and Agencies bonds. Corporate bonds had a return of 2.26%, and Agencies had a return of 2.84% compared to Treasuries, which had a return of 6.36%. The shorter duration to the index also hurt the Fund's performance.
TOP
Portfolio Manager: William Doughty and Gustave Seasongood
Question:
How Did Your Fund Perform This Quarter?
Answer:
For the Quarter ended September 30, 2011 the Huntington Mortgage Securities Fund had a return of .25% for Investment A Shares at NAV compared to the Barclays Mortgage-Backed Securities Fixed Rate Index, which had a return of 2.36% for the same time period. (Click Fund name above to obtain standard fund performance).
Performance data quoted represents past performance which is no guarantee of future results. Invesmtment return and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Performance shown does not reflect the following sales charges: Class A Shares of all equity funds and asset allocation funds have a maximum sales charge of 4.75%; Class A Shares of fixed-income funds have a maximum sales charge of 3.75% except for Short/Intermediate Fixed Income Securities Fund which has a maximum sales charge of 1.50%. If reflected, performance would be lower.
Mutual fund performance changes over time and current performance may be lower or higher than what is stated. For current to the most recent month end performance, view the Fund Performance page of this website.
Question:
Why Did Your Fund Perform This Way?
Answer:
The Huntington Mortgage Securities Fund underperformed its benchmark for the quarter ended September30, 2011. The Fund's performance was impacted by its holdings in Real Estate Investment Trusts (REITs). The total return for REITs was -14.63 % during the quarter, as represented by the Bloomberg Real Estate Trust Index. Mortgages had a return of 2.36% as measured by the Barclays Mortgage-Backed Securities Fixed Rate index. The use of more defensive type mortgages also had a negative impact to the Fund.
TOP
Portfolio Manager: Kathy Stylarek
Question:
How Did Your Fund Perform This Quarter?
Answer:
The Huntington Ohio Tax-Free Fund Investment A Shares at NAV had a 2.53% return for the quarter ended September 30, 2011. The Fund's benchmark, the Barclays 7-Year Municipal Index, had a total return of 3.13%. (Click Fund name above to obtain standard fund performance).
Performance data quoted represents past performance which is no guarantee of future results. Investment return and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Performance shown does not reflect the following sales charges: Investment A Shares of all equity funds have a maximum sales charge of4.75%; Investment A Shares of fixed-income funds have a maximum sales charge of 3.75% except for Short/Intermediate Fixed Income Securities Fund which has a maximum sales charge of 1.50%. If reflected, performance would be lower.
Mutual fund performance changes over time and current performance may be lower or higher than what is stated. For current to the most recent month end performance, view the Fund Performance page of this website.
Question:
Why Did Your Fund Perform This Way?
Answer:
During the third quarter of 2011, both short-term and long-term rates went down, which drove values up. The entire curve moved between -10 and -50 basis points down in yield with the long bond maturities benefiting the most. The Fund benefited from this move down in rates, but did not capture the as much return as it could have because of the Fund's focus on the intermediate range of the curve. We are restricted from purchasing bonds outside the 15-year maturity limit.
Overall, demand for municipals was steady, but not considered strong. The current fears about shortfalls in municipal budgets and unfunded pensions still seemed to be a leading concern for investors, though not nearly the focus it has been in the past. There was growing media attention on the cuts in expenditures and benefits negotiation adjustments to close the budgets gaps. The other dominant concern has been this year's State and Local elections and next year's Presidential elections.
More gains were achieved from harvesting the Zero Coupon bonds purchased last year. We continued to hold some Housing bonds that experienced significant gains. These positions helped to add yield and stabilize the NAV.
The quarter ended with municipals in the short and intermediate maturity range offering a higher than average number for the percentage of tax-free yields to treasury yields. The percentage of tax-free yield to treasury yield was between 110% and 152%, while the historical average is 74%. The 2-yr to 7-yr tax-free yield is back up to 110% of the Treasuries range, while longer tax-free bond yields were offering more than 135% of Treasury yields and higher. New issue supply was light but steady and the deals were smaller than were historically done in the past. We remained selective in this environment because stretching for yield can create undue pressure on the portfolio's volatility. The target bond remained the general obligation and essential service bonds in the intermediate range of the curve. The NAV for Class A Shares was 21.34 on June 30, 2011 and increased to 21.78 on September 30, 2011, while maintaining a steady production of tax-free income both Ohio and Federal. The Fund continued to be non-AMT and non-leveraged.
TOP
Portfolio Manager: Paul C. Koscik
Question:
How Did Your Fund Perform This Quarter?
Answer:
The Huntington Rotating Markets Fund Trust Shares had a -11.73 % total return at NAV for the quarter ended September 30, 2011. This compared to the return of -13.87% for the S&P 500 Index (S&P 500). (Click Fund name above to obtain standard fund performance).
Performance data quoted represents past performance which is no guarantee of future results. Investment return and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Performance shown does not reflect the following sales charges: Class A Shares of all equity funds and asset allocation funds have a maximum sales charge of 4.75%; Class A Shares of fixed-income funds have a maximum sales charge of 3.75% except for Short/Intermediate Fixed Income Securities Fund which has a maximum sales charge of 1.50%. If reflected, performance would be lower.
Mutual fund performance changes over time and current performance may be lower or higher than what is stated. For current to the most recent month end performance, view the Fund Performance page of this website.
Question:
Why Did Your Fund Perform This Way?
Answer:
On September 1, 2010, the Rotating Markets Fund rotated from the “Global” segment of the stock market to the “Large Cap” segment. Specifically, it rotated to emulate the performance of the Dow Jones Industrial Average. The major reason for the rotation was the belief that 2011 would see a shift out of riskier assets, such as the mid cap and small cap stocks, and into the more conservative large cap stocks. The Dow Jones Industrial Average was chosen because it is comprised of the “bluest” of large cap stocks. Another important consideration was the fact that the DJIA had underperformed the S&P 500 Index since November, 2008 and was due for a period of outperformance. The anticipated shift to large caps did in fact occur. Because of fears regarding a weakening US economy and the stability of the European Union, the stock market sold off sharply in the third quarter. The “fear factor” worked in the Fund's favor as investors poured into the Dow's thirty stocks. For the third quarter, the Fund has outperformed the S&P 500, S&P 400, and the S&P 600 indices.
TOP
Portfolio Manager: Peter Sorrentino
Question:
How Did Your Fund Perform This Quarter?
Answer:
The Huntington Real Strategies Fund Class A Shares had a total return of -19.44% at NAV, for the quarter ended September 30, 2011. This compares with the -11.69% return experienced by its benchmark, the S&P GSCI Index (S&P GSCI), for the same period. The Huntington Real Strategies Fund Class A Shares underperformed the benchmark by 7.75%. In terms of measuring performance against an unmanaged index, we have created the Real Strategies Indices Blend, a custom blended index comprised of the Reuters/Jeffries CRB Total Return Index (50%) and the NAREIT Index (50%), produced a total return of -13.21% for the three-month reporting period. (Click Fund name above to obtain standard fund performance).
Performance data quoted represents past performance which is no guarantee of future results. Investment return and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Performance shown does not reflect the following sales charges: Class A Shares of all equity funds and asset allocation funds have a maximum sales charge of 4.75%; Class A Shares of fixed-income funds have a maximum sales charge of 3.75% except for Short/Intermediate Fixed Income Securities Fund which has a maximum sales charge of 1.50%. If reflected, performance would be lower.
Mutual fund performance changes over time and current performance may be lower or higher than what is stated. For current to the most recent month end performance, view the Fund Performance page of this website.
Question:
Why Did Your Fund Perform This Way?
Answer:
Individual holdings within the Fund experienced one of two fates during the period, they either performed very well, or very poorly. The top performing holdings as of September 30, 2011 were Petrohawk Energy, which rose 57.0% due to its acquisition by BHP Billiton, and Terra Nitrogen that carried its earlier performance another 41.8% higher on strong U.S. fertilizer demand. Both of these positions were sold by the end of the quarter. Rounding out the top performer was the PowerShares US Dollar Bullish Fund, a 3.5% position that gained 5.11% as investors once more looked to the Dollar as a safer alternative in the face of the ongoing sovereign debt issues in Europe.
Unfortunately, these successes were over shadowed by the price declines suffered by the majority of the portfolio. Fears of a global economic slowdown sent energy prices lower. Seaborne metallurgical coal lead the way as witnessed by the valuation of the Fund's holdings in Walter Energy, - 42.8%, and Rio Tinto PLC, - 39%, representing 0.0% and 1.7% of the Fund, respectively. The ebbing of takeover speculation continued to haunt both Manitowoc (a 0.77% holding) and Deere (a 3.4% holding) during the quarter as Manitowoc slipped -60% and Deere - 21.7%. The Fund engaged in a continuous program of hedging various positions with listed options during the quarter, but the magnitude of the price actions swamped these efforts.
Fears of a global economic slowdown impacted commodity prices across the board during the period. Even the Fund's precious metals related holdings in Central Fund of Canada, Pan American Silver and Minas Buenaventura with a combined weight of 9.2% at the end of the quarter, were not enough to ameliorate the impact of the sell -off in both industrial and soft commodities. In search of more stable returns, the Fund began investing directly in income producing real estate during the period with an investment in an industrial property and a collection of targeted single tenant retail properties. These investments are generating monthly rental income for the Fund in addition to enabling us to pick the geographic location, type of property and tenant. The intent, as it is with all the Fund's investments, is to find attractive hard assets with the potential to deliver meaningful returns to our shareholders.
TOP
Portfolio Managers: Randy Bateman
Question:
How Did Your Fund Perform This Quarter?
Answer:
The Huntington Situs Fund Class A Shares had a total return of -20.51% at NAV for the quarter ended Sept 30, 2011. This compares to the -19.83% return experienced by its benchmark, the S&P Small Cap 600 Index (S&P 600) for the same period. The Huntington Situs Class A Shares underperformed the benchmark by 0.69%. (Click Fund name above to obtain standard fund performance).
Performance data quoted represents past performance which is no guarantee of future results. Investment return and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Performance shown does not reflect the following sales charges: Class A Shares of all equity funds and asset allocation funds have a maximum sales charge of 4.75%; Class A Shares of fixed-income funds have a maximum sales charge of 3.75% except for Short/Intermediate Fixed Income Securities Fund which has a maximum sales charge of 1.50%. If reflected, performance would be lower.
Mutual fund performance changes over time and current performance may be lower or higher than what is stated. For current to the most recent month end performance, view the Fund Performance page of this website.
Question:
Why Did Your Fund Perform This Way?
Answer:
Trading activity and portfolio structure were responsible for most of the underperformance relative to the benchmark. Much of that was due to Sector Allocation, which had a negative impact of 20%. Security Selection also contributed to the relative weakness as it contributed a minus .50%. During the quarter the manager sought to use some cash holdings as a cushion to the falling market. At no time, however, was cash ever a position that exceeded 8%. By the end of the quarter, cash was back down to levels near 3%.
The three holdings that had the largest negative contribution to the Fund's performance and their percentage of total net assets as of Sept 30, 2011 were OYO Geospace Corp, (1.9%), EnPro Industries, Inc. (1.7%) and Trinity Industries, Inc. (2.1%) were in the same industries that presented the overperformance in the first quarter. Specifically the Materials, Industrials and Energy Industries experienced significant weakness and they were among the largest relative exposures in the Situs Fund. The disarray that was prevalent in Europe during the summer led to expectations of a worldwide recession at the same time that news from China was of slowing growth as well. Fortunately, in October, the markets are rallying as investors seeking value are being rewarded.
TOP
Portfolio Managers: Paul C. Koscik and Martina Cheung
Question:
How Did Your Fund Perform This Quarter?
Answer:
The Huntington Technical Opportunities Fund Trust Shares had a total return of -17.66% at NAV for the quarter ended September 30, 2011. This compared to the return of -13.87 % for the Standard & Poor's 500 Index (S&P 500). (Click Fund name above to obtain standard fund performance).
Performance data quoted represents past performance which is no guarantee of future results. Investment return and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Performance shown does not reflect the following sales charges: Class A Shares of all equity funds and asset allocation funds have a maximum sales charge of 4.75%; Class A Shares of fixed-income funds have a maximum sales charge of 3.75% except for Short/Intermediate Fixed Income Securities Fund which has a maximum sales charge of 1.50%. If reflected, performance would be lower.
Mutual fund performance changes over time and current performance may be lower or higher than what is stated. For current to the most recent month end performance, view the Fund Performance page of this website.
Question:
Why Did Your Fund Perform This Way?
Answer:
The Technical Opportunities Fund began the quarter with 60% of the portfolio invested in the U.S., 35% in international, and 5% in cash. The third quarter of 2011 was one of the worst quarters for the equity market since 2008. Although the U.S. equity markets suffered sharp losses, the European Union and the Emerging Markets suffered even greater losses. As the quarter progressed, the Fund became more defensive by raising significant amounts of cash. Although the U.S. portion of the Fund had comparable returns to the S&P 500, the elevated cash levels were not enough to offset the sharp losses suffered in the international portion of the Fund.
Looking ahead to the fourth quarter, the Fund has raised a significant amount of cash. The Fund will continue to be opportunistic and look to invest in U.S. companies likely to outperform the S&P 500 while searching the globe for companies with “technical patterns” that have the potential for significant price appreciation.
TOP
Portfolio Manager: Andrew Haledon
Question:
How Did Your Fund Perform This Quarter?
Answer:
For the third quarter of 2011, the Huntington Macro 100 Fund had a total return of -14.9% at NAV for Class A Shares. The Standard & Poor's 500 Index (S&P 500), the Fund's benchmark, had a return of -13.87% for the same period. The Huntington Macro 100 Fund Class A Shares underperformed the benchmark by -1.03%, but outperformed its Lipper Multi-Cap Core group by +2.01% placing it at 35% rank in the category or in the second quartile. (Click Fund name above to obtain standard fund performance).
Performance data quoted represents past performance which is no guarantee of future results. Investment return and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Performance shown does not reflect the following sales charges: Class A Shares of all equity funds and the asset allocation funds have a maximum sales charge of 4.75%; Class A Shares of fixed-income funds have a maximum sales charge of 3.75% except for Short/Intermediate Fixed Income Securities Fund which has a maximum sales charge of 1.50%. If reflected, performance would be lower.
Mutual fund performance changes over time and current performance may be lower or higher than what is stated. For current to the most recent month end performance, view the Fund Performance page of this website.
Lipper rankings are based on Total Return and do not take sales charges into account. For the 1-, 3- and 5-year time periods ended 9/30/11 the Huntington Macro 100 Fund Class A ranked 376 out of 794 funds, 366 out of 690 funds and 480 out of 580 funds, respectively.
Question:
Why Did Your Fund Perform This Way?
Answer:
The Macro 100 Fund's strategy is to focus on Macroeconomic themes that we believe will impact the companies within the S&P 500 over the next twelve to eighteen months and to invest in the one hundred companies we feel are best positioned to take advantage of those themes. As a result of this strategy, the Fund began the quarter with a heavy cash position of nearly 20%. In July there was a manager change and a decision was made to reduce the cash exposure from 20% to about 4%, by the end of July.
This decision resulted in a number of large trades and rebalancing. Transaction costs negatively impacted the Fund's performance in the quarter, but this restructuring should allow for better performance going forward. The Fund's performance in July lagged the S&P 500 by -0.55% which was directly attributable to transaction costs. However, in August, the Fund outperformed the S&P by 0.63% due to the changes in investments and normal transaction level. After an intensive evaluation of the latest research based on core economic models provided by Laffer and Associates, a consultant to Huntington Asset Advisors. we took further action to align the Funds' stock selection. For September, the Fund underperformed the S&P 500 by -1.12%, however the changes made in September were enough to boost the performance up in the last week of September allowing for a good quarter overall compared to our peers. We expect there will only be minor tweaks through the remainder of the year.
The initial changes we made last quarter were essential moves to get the portfolio more in line with the S&P 500, Huntington's Investment Policy, and the research we utilize to select the 100 holdings in the S&P that we believe will perform best in the projected macroeconomic environment. We believe we are now best positioned to potentially make up for the negative impact of the large cash holding call in the first half of the year.
TOP
Portfolio Managers: Robert “Chip” Hendon
Question:
How Did Your Fund Perform This Quarter?
Answer:
For the 3rd Quarter the Huntington World Income Fund Class A Shares had a total return of -11.70% at NAV, for the quarter ended September 30, 2011. This compares with a 3.13% return experienced by its benchmark, the B of A Global Broad Bond Index, for the same period. Class A Shares underperformed the benchmark by 14.83%. In terms of measuring performance against an unmanaged index, we have created the World Income Indices Blend, a custom blended index comprised of the MSCI All Country World Equity Index (50%) and the B of A Global Broad Bond Index (50%), which produced a total return of -8.06% for the same period. (Click Fund name above to obtain standard fund performance).
Performance data quoted represents past performance which is no guarantee of future results. Investment return and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Performance shown does not reflect the following sales charges: Class A Shares of all equity funds and asset allocation funds have a maximum sales charge of 4.75%; Class A Shares of fixed-income funds have a maximum sales charge of 3.75% except for Short/Intermediate Fixed Income Securities Fund which has a maximum sales charge of 1.50%. If reflected, performance would be lower.
Mutual fund performance changes over time and current performance may be lower or higher than what is stated. For current to the most recent month end performance, view the Fund Performance page of this website.
Question:
Why Did Your Fund Perform This Way?
Answer:
In the 3rd quarter what didn't go wrong? It seems that the things that were working in the past went south along with everything else. The correlation in the market was a major hindrance to the performance of the Fund. Currencies that use to run inverse to each other all retreated versus the dollar, having a major effect on the bond portion
of our portfolio. For the quarter, the bond portion was down 12.2%. That portion represented 23% of the allocation in the Fund, accounting for -2.8% of the loss of the Fund's performance.
The remaining -8.8% was incurred in the equity portion of the portfolio, as a commodities sell-off negatively affected Master Limited Partnerships(MLPs) and Canadian Royalty Trusts (CRTs) and a Euro-zone meltdown negatively affected foreign stocks. Then, there was an overall sell-off of all the indices across the world. This portion, relatively speaking, performed well due to the covered call writing and the high level of income. Given that-8.8% of the overall Fund performance was attributed to the equity portion (77% of the Fund), the equity portion was down 11.5% vs. the MSCI AC World index, which was down 17.3%.
The three positions that had the most positive contribution to the Fund and their percentage of total net assets as of September 30, 2011were were Terra Nitrogen Co. L.P. (0.0%), SUPERVALU Inc. (0.0) and American Software Inc Cl A (0.0%). These three holdings added 0.77% to the Fund's return. The three holdings that most negatively affected the Fund and their percentage of total net assets as of September 30, 2011 were Banco BilboaVizcaya Argentaria (1.3%) Seagate Technology Inc. (0.0) and Teekay Tankers Ltd. Cl A (0.0). These three holdings had a negative contribution of 1.48%.to the Fund's return.
Going forward we expect a resolution in Europe. With US treasuries at all time lows and the Dollar strength versus most currencies during the 3rd quarter, we anticipate Treasury yields to increase and the dollar to depreciate versus other currencies. With the dollar reverting back, this should cause local currency to appreciate against the dollar and potentially will benefit the performance of the Fund. Further with the outlook for the US economy beginning to improve, ever so slightly, we anticipate the equity portion of the portfolio to do well especially in the areas that would benefit from a rise in inflation, i.e. MLPs and CRTs. From a Fund perspective, we intend to continue to seek out high quality equities and bonds that make sense in the current environment. We look to use hedges more frequently, as the market seems to be stuck in a range. Income will continue to be the focus of the Fund, which should help smooth out performance and enhance returns over time.
TOP
Portfolio Managers: Don Keller
Question:
How Did Your Fund Perform This Quarter?
Answer:
The Huntington Disciplined Equity Fund Class A Shares had a total return of -2.90% at NAV, since its inception on 07/29/2011, compared to the return of -11.07% experienced by its benchmark the Standard & Poor's 100 Index (S&P 100) for the same period. (Click Fund name above to obtain standard fund performance).
Performance data quoted represents past performance which is no guarantee of future results. Investment return and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Performance shown does not reflect the following sales charges: Class A Shares of all equity funds and asset allocation funds have a maximum sales charge of 4.75%; Class A Shares of fixed-income funds have a maximum sales charge of 3.75% except for Short/Intermediate Fixed Income Securities Fund which has a maximum sales charge of 1.50%. If reflected, performance would be lower.
Mutual fund performance changes over time and current performance may be lower or higher than what is stated. For current to the most recent month end performance, view the Fund Performance page of this website.
Question:
Why Did Your Fund Perform This Way?
Answer:
The Disciplined Equity Fund was a new fund in our family during the quarter. It commenced operation on July 31, 2011. The Fund performed, as we hoped it would, by dampening the volatility that investors felt during the months of August and September. This was a period which saw the VIX (CBOE Volatility Index) jump from 25.28 to 42.96, indicating a tremendous rise in volatility and investor concern. During this two month period, the Class A shares of the fund fell 2.90%. This compares quite favorably to the 11.07% drop which the benchmark, S&P 100, experienced. This period helped to validate the primary goal of the Fund, reduced volatility.
The Fund is constructed to reduce volatility by combing three distinct elements within the portfolio. First is the base, which is designed to closely mirror the performance of the S&P 100. This S&P 100 index is an unmanaged index which includes some of the largest companies that are often characterized as industry leaders. The second component is to sell call options on many of these stocks, which the Fund owns. While selling a call puts a cap on some of the upside potential of the Fund, it also is a means of producing income that can then be utilized in other ways. The third element is the buying of puts on the OEX 100. The put acts as a counter weight to the market. In theory, puts rise in value as the market declines and vice-versa. So as these three elements are combined in the Fund, the goal is to participate with the market but in a less volatile manner.
In this type of Fund, security selection does not play a big part in performance. As mentioned above, the base for the Fund is a portfolio that is designed to closely mirror the S&P 100. Therefore, the Fund, like the index, had its largest weight in the following stocks as a percentage of net assets: Apple (4.8%), Exxon Mobil (4.7%), IBM (3.1%) and Procter & Gamble (2.4%) as of 09/30/2011.
TOP
For more complete information, view the prospectuses available on this website or ask your investment professional for a prospectus. You should consider the fund's investment objectives, risks, charges, and expenses carefully before you invest. Information about these and other important subjects is in the fund's prospectus, which you should read carefully before investing.
An investment in money market funds is neither insured nor guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although money market funds seek to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in these funds.
Index definitions may be found in the Glossary section of this website.
Credit ratings pertain only to the securities in the portfolio and do not protect fund shares against market risk.
Diversification does not assure a profit nor protect against loss.
There are no guarantees that dividend paying stocks will continue to pay dividends. In addition, dividend paying stocks may not experience the same capital appreciation potential as non-dividend paying stocks.
Bond prices are sensitive to changes in interest rates and a rise in interest rates can cause a decline in their prices.
Duration is a measure of a security's price sensitivity to changes in interest rates. Securities with longer durations are more sensitive to changes in interest rates than securities of shorter durations.
The value of some mortgage-backed securities may be particularly sensitive to changes in prevailing interest rates, and although the securities are generally supported by some form of government or private insurance, there is no assurance that private guarantors or insurers will meet their obligations.
1 International investing involves special risks including currency risk, political risks, increased volatility of foreign securities, and differences in auditing and other financial standards. Prices of emerging markets securities can be significantly more volatile than the prices of securities in developed countries and currency risk and political risks are accentuated in emerging markets.
2 Investments in real estate investment trusts (“REITs”) and real estate related securities involve special risks associated with an investment in real estate, such as limited liquidity and interest rate risks and may be more volatile than other securities. In addition, the value of REITs and other real estate-related investments is sensitive to changes in real estate values, extended vacancies of properties and other environmental and economic factors.
3 Income may be subject to the federal alternative minimum tax.
4 Small company stocks may be less liquid and subject to greater price volatility than large capitalization stocks
5 Funds whose investments are concentrated in a specific industry or sector may be subject to a higher degree of market risk than funds whose investments are diversified. In addition, the Fund may be subject to specific risks of the technology sector, such as obsolescence.
6 While inflation-protected securities (“IPS”) adjust in response to inflation as measured by a specific price index, the value of these securities generally may still decline in response to an increase in real interest rates. In addition, any increase in principal value of an IPS caused by an increase in the price index is taxable in the year the increase occurs, even though the Fund will not receive cash representing the increase at the time. Commodities-related investments are subject to the same risks as direct investments in commodities and prices may rise and fall in response to many factors such as economic, political and regulatory developments.
7 The DCIB is a custom, blended index comprised of the following three indices with their noted respective weightings: S&P 500/Citigroup Value Index (40%), Merrill Lynch Fixed Rate Preferred Index (40%) and NAREIT Index (20%). This custom, blended index and its respective weightings are reflective of the Fund's sector diversification.
8An investment in an exchange-traded fund (ETF) generally presents the same primary risks as an investment in a conventional fund (i.e., one that is not exchange traded) that has the same investment objectives, strategies, and policies. The price of an ETF can fluctuate up or down, and the Fund could lose money investing in an ETF if the prices of the securities owned by the ETF go down. In addition, ETFs may be subject to the following risks that do not apply to conventional funds:
(i) the market price of an ETF's shares may trade above or below their net asset value; (ii) an active trading market for an ETF's shares may not develop or be maintained; or (iii) trading of an ETF's shares may be halted if the listingexchange's officials deem such action appropriate, the shares are delisted from the exchange, or the activation of market-wide “circuit breakers” (which are tied to large decreases in stock prices) halts stock trading generally.
9 Effective January 24, 2008 the Huntington Situs Small Cap Fund changed its name to the Huntington Situs Fund, and changed its investment strategies and policies such that it will no longer be required to invest at least 80% of it assets in small-cap securities as measured within the range of the S&P 600 Small Cap Index. The Fund is permitted to invest its assets in U.S. and foreign equity securities whose situs, or geographical locations, give them a competitive advantage and the potential to outperform, regardless of market capitalization.
10Because the fund invests in a limited number of holdings, an increase or decrease in the value of a single security may have a greater impact on the fund's net asset value and total return.
11Mid-cap investing involves greater risk not associated with investing in more established companies, such as greater price volatility, business risk, less liquidity and increased competitive threat.
12The risk of investing in the Huntington Asset Allocation Funds is a reflection or the risks of investing in the Underlying Funds in which each Asset Allocation Fund invests. Because the Funds invest in other Funds, the Funds are shareholders of those Underlying Funds and indirectly bear its proportionate share of the operating expenses, including management fees, of the Underlying Funds.
13The Fund intends to write (sell) covered call options which may limit the Fund's gain, if any, on the underlying securities, and the Fund continues to bear the risk of a decline in the value of the underlying stock until the option expires or is closed out. The Fund intends to write (sell) call options and purchase put options and/or enter into put option spreads. Options spreads present risk during periods of high market volatility. The Fund may also write (sell) put options on individual stocks deemed attractive for purchase at prices at or above the exercise price of the put options written. If a counterparty is unable to honor its commitments, the value of Fund shares may decline and/or the Fund could experience delays in the return of collateral or other assets held by the counterparty. No Fund is a complete investment program and you may lose money investing in the Fund.
Investments cannot be made directly in an index.
The Funds are distributed by United Financial Securities, Inc. (Member FINRA) a wholly owned subsidiary of Huntington Bancshares, Inc. and an affiliate of Huntington Asset Advisors, Inc. the advisor of Huntington Funds.
|
