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The fund seeks to generate an extra return and curtail the tail risk of the client's existing portfolio by overlaying options/option spreads.  The overlaying options/option spreads are self-financing, and thus, the SMA only needs access to the margin buying power of the client's existing portfolio.  The SMA provides monthly income, maintains a zero expense ratio, and charges a variable performance fee only when the SMA makes a positive return.  

 

 

 

 

 

 

 

The SMA charges a variable performance fee with a high watermark provision. The performance fee comprises 50% of the extra return the SMA generates.              

Portfolio Stabilizer Plus SMA

               YTD Return                      0.01%

                           as of XX/XX/2024

           30-Day SEC Yield                0.01%

                           as of XX/XX/2024

 

              Expense Ratio                   0.00%*

Overview | Performance & Distribution | Fees

Overview

The Portfolio Stabilizer Plus SMA seeks to:

  • ​Generate an excess return above and beyond the client's existing portfolio.

  • Curtail the tail risk of the client's existing portfolio.

The SMA is an options overlay tail risk hedge portfolio. The options overlay consists of FLEX option-spreads net-credit collar variants. 

The potential benefits the SMA offers include:

  • To offer the opportunity to obtain an extra return above the client's existing portfolio.

  • To reduce the tail risk of the client's existing portfolio and minimize the lost upside potential of the client's existing portfolio.

  • To charge no fee when the tail risk hedge portfolio fails to make a positive return, which helps the fund investors preserve their capital.

Performance & Distribution

Performance

Key Facts of Distributions

Distributions in Percent of the Underlying Portfolio Vaue

Distributions History

Fees

Annual Fund Operating Expenses

Variable Performance Fee

50% of the return generated by the tail risk hedge portfolio.  The performance fee includes the high watermark provision, requiring that the cumulative capital loss, if any, of the tail risk portfolio incurred in the past be fully recovered before the SMA charges the performance fee. 

SMA Documents

SMA Fact Sheet
 

SMA Advisory Agreement
 

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