- Fund offers downside protection with upside participation in equities
- Fund provides access to a novel options-based strategy that strongly complements classical asset-allocation risk-management strategies
- Fund was first-to-market in the rapidly growing Target/Defined Outcome Investments space
MCLEAN, VA / ACCESSWIRE / September 26, 2019 / Cboe Vest Financial LLC (“Cboe Vest”) announced today that its Cboe Vest S&P 500 Buffer Strategy Fund, featuring a unique risk-management strategy, completed a three-year track record. The Fund’s Institutional share class (Ticker:BUIGX) earned a 5-star Overall Morningstar rating.1
The Fund, which tracks the Cboe S&P 500 Buffer Protect Index (SPRO), is the first index-based mutual fund offering buffered downside protection. The Fund inspired the launch of numerous new products in the fast-growing Target/Defined Outcome Investments space that Cboe Vest helped create.
Since its inception on Aug. 23, 2016, the Fund has provided equity investors with access to a unique risk-management strategy that strongly complements classical asset-allocation and factor-tilt strategies. The Fund seeks to reduce uncertainty in a volatile market environment, by using options that seek to deliver contractual levels of certainty. The Fund’s Buffer Protect options-based strategy, which seeks to protect the first 10% of downside losses while allowing participation in potential upside gains to a cap, had previously been accessible to only select investors in structured notes or annuities.
“We are thrilled to celebrate the Fund’s three-year track record and 5-star Morningstar Rating,” said J. Steven Neamtz, President of Cboe Vest. “The five-star rating affirms the work that goes into the design of all our funds – our years of research, leveraging of institutional expertise, listening to clients and extensive study of capital markets.”
“We built this Fund to give advisors a powerful tool they can use to target the outcomes their clients desire. While it has features that can provide relative outperformance in bear, range-bound or modest bull market environments, the Fund has also performed well since inception in bullish equity market conditions. As the market cycle evolves and we experience higher volatility regimes, we believe the Fund’s value as an “all-weather” risk-management strategy will become even more apparent,” Neamtz concluded.
Designed to be held for a long or indefinite investment horizon, the Fund invests in a laddered portfolio of Buffer Protect strategies, with 10% downside buffer protection and caps that recalibrate to current levels of the S&P 500 each month.
The Fund is available on the major registered investment advisor (RIA) custodial platforms, as well as independent and regional brokerage platforms. For more information visit https://www.cboevest.com/mutual-funds/, or call (703) 918-4949 for sales support.
About Cboe Vest
Cboe Vest Financial LLC, a wholly owned subsidiary of Cboe Vest Group Inc. offers institutional-quality Target Outcome Investments® built on the backbone of its unique investment philosophy, that strive to buffer losses, amplify gains or provide consistent income. Such solutions are available as mutual
Investors should consider the investment objectives, potential risks, management fees and charges and expenses carefully before investing. This and other information is contained in the Fund’s prospectus, which may be obtained by calling (855) 979-6060. Please read the prospectus carefully before investing. Distributed by First Dominion Capital Corp., Richmond, VA. Member FINRA.
The Fund may invest in derivative securities. These financial instruments derive their performance from the performance of an underlying asset or index and can be volatile. The Fund could experience a loss if derivatives do not perform as anticipated, or are not correlated with the performance of other investments which are used to hedge, or if the Fund is unable to liquidate a position because of an illiquid secondary market. The Fund bears the risk that the Options Clearing Corporation (OCC) will be unable or unwilling to perform its obligations under the FLEX Options contracts. Additionally, FLEX Options may be less liquid. The Fund will incur higher and duplicative expenses when it invests in mutual funds and exchange-traded funds (“ETFs”). There is also the risk that the Fund may suffer losses due to the investment practices of the underlying funds. The Fund’s return may not match or achieve a high degree of correlation with the return of the Index. A number of factors may affect the Fund’s ability to achieve a high degree of correlation with the Index, and there is no guarantee that the Fund will achieve a high degree of correlation.
©2019 Morningstar. All Right Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar not its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results.
1The Overall Morningstar Rating for Cboe Vest S&P 500 Buffer Strategy Fund, a weighted average of three-, five-, and ten-year (if applicable) ratings, is out of 96 funds in the Options-Based category, based on risk-adjusted return as of 8/31/19. Past performance is no guarantee of future results. The Morningstar Rating is for the Institutional share class only; other classes may have different performance characteristics.
The Morningstar RatingTM for funds, or “star rating”, is calculated for mutual funds with at least a three-year history. Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a fund’s monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The top 10% of funds in each product category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. The Overall Morningstar Rating for a fund is derived from a weighted average of the performance figures associated with its three-, five-, and 10-year (if applicable) Morningstar Rating metrics.
Copyright © Cboe Vest Financial Group 2019. Target Outcome Investment is a registered trademark of Cboe Vest Financial.
SOURCE: Cboe Vest Financial LLC
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