CHALFONT, Pa.–(BUSINESS WIRE)–Safeguard Asset Management, announced today the launch of the SafeGuard CORE ONE Fund (SGFIX, SGFAX). Designed to provide investors with an all-weather strategy for investing through full market cycles, the Fund seeks to deliver capital appreciation in both rising and falling markets, with the goal of minimizing downside volatility.
“With market volatility and uncertainty reaching new heights, investors and their advisors are seeking liquid solutions to reduce risk in their equity portfolios,” said SafeGuard co-founder and CEO Gary Kleinschmidt. “The SafeGuard CORE ONE Fund meets this demand by providing a new approach to equity investing that blends three strategies into a single solution seeking to outperform the S&P 500 with less volatility across a broad range of economic conditions.”
Combining the Power of Indexing and Alternatives
SafeGuard takes a risk managed approach in pursuit of the Fund’s investment objective by employing a proprietary investment model to allocate the Fund’s assets among three principal investment strategies:
- S&P 500 Strategy – seeking to track the returns of the S&P 500 Index through use of S&P 500 Index futures contracts.
- Futures Overlay Strategy – seeking to provide capital appreciation and diversification, up to 25% of the fund’s assets are invested in commodity-based strategies expected to have a low correlation to each other and the equity markets.
- Protection Strategy – seeking to provide downside protection in declining markets, the fund invests in long dated put options on the S&P 500 Index.
“We’re excited to be providing a broader universe of investors and advisors with access to our derivatives expertise through the SafeGuard CORE ONE fund,” said Joe Gabor, co-founder and Chief Investment Officer of SafeGuard. “This year’s market outlooks are littered with an array of risks ranging from inflation, global recession, the Russia-Ukraine war, debt ceiling debacles and much more. Against this backdrop, there’s never been a better time to consider prioritizing risk management across your equity exposures by combining the power of indexing and alternatives.”
About SafeGuard Asset Management
SafeGuard Asset Management was founded by Chief Executive Officer Gary Kleinschmidt and Chief Investment Officer Joe Gabor to provide investors with solutions to enhance the diversification of their portfolios. For more information visit https://safeguardam.com/
Important Information
Investment Products: Not FDIC Insured. May Lose Value.
Model and Data: Given the complexity of the investments and strategies of the Fund, the Advisor relies heavily on quantitative models supplied by third parties and information and data supplied by third parties (“Models and Data”). Models and Data are used to construct sets of transactions and investments, to provide risk management insights, and to assist in hedging the Fund’s investments. Some of the models for the Fund are predictive in nature. The use of predictive models has inherent risks.
The investor should consider the Fund’s investment objectives, risks, charges and expenses carefully before investing. The prospectus contains this and other important information about the investment company. To obtain a free prospectus, please call (844) 347-2140. Please read the prospectus carefully before investing.
Fund Risks:
Asset Allocation – The Fund’s ability to achieve its investment objective depends upon the Adviser’s analysis of various factors and Adviser’s ability to select the appropriate mix of asset classes based on its analysis of such factors, which may prove incorrect. Commodity – Investing in the commodities markets may subject the Fund to greater volatility than investments in traditional securities.
Equity – The Fund will gain exposure to equity securities through investments in futures contracts. The Fund’s equity holdings may decline in value because of changes in price of a particular holding or a broad stock market decline. The value of a security may decline for a number of reasons which may relate directly to the issuer of a security or broader economic or market events including changes in interest rates.
Non-Diversification – The Fund is non-diversified. Performance of a non- diversified fund may be more volatile than performance of a diversified fund.
Derivative – Derivatives are financial instruments that have a value which depends upon, or is derived from, a reference asset, such as one or more underlying securities, pools of securities, options, futures, indexes or currencies.
Market Events – Disruptive events with geopolitical consequences, including pandemics (such as COVID-19), may destabilize various countries’ economies and markets, which may experience increased volatility and reduced liquidity.
Hedging – Gains or losses from positions in hedging instruments, such as options, may be much greater than the instrument’s original cost. The degree of protection provided by the Protection Strategy will vary depending on the size of the Protection Strategy (expected to be 100% of NAV) versus the size of the S&P 500 Strategy (which can be as high as 120% of NAV), as well as the strike prices of put options used in the Protection Strategy. When the S&P Strategy is larger than the Protection Strategy, protection will be incomplete. When the strike prices used in the Protection Strategy are significantly lower than current market levels, greater losses can occur before the protection provided by the put options is effective.
New Fund – The Fund is newly formed. Accordingly, investors in the Fund bear the risk that the Fund’s Adviser may not be successful in implementing the Fund’s investment strategy, and may not employ a successful investment strategy. The Fund is offered only to United States residents, and fund-related information is intended only for such persons.
Diversification – neither assures a profit nor guarantees against loss in a declining market.
Trading in commodity interests involves substantial risk of loss.
Nothing on this website should be considered a solicitation to buy or an offer to sell shares of the Fund in any jurisdiction where the offer or solicitation would be unlawful under the securities laws of such jurisdiction.
Distributor, Foreside Fund Services, LLC
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