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SOURCE BPV Capital Management
KNOXVILLE, Tenn., Feb. 4, 2014 /PRNewswire/ -- With interest rate risk dampening fixed income investment opportunities, BPV Capital Management ("BPV"), today announced the launch of the BPV Low Volatility Fund (Class I share: BPVLX), a low-fee hedged equity strategy that seeks to provide institutional investors and advisors with bond-like returns and reduced volatility as compared to the S&P 500®.
The BPV Low Volatility Fund will hold a broad-based equity portfolio, and the portfolio managers will employ a variety of options strategies to mitigate risk and generate potential returns.
"We are excited to welcome the Low Volatility Fund to our family of funds," said Mike West, Senior Partner and CEO of BPV. "After listening to our advisors describe their challenges, we determined our hedged equity strategy provided an alternative investment strategy to investments that were in fixed income or that are sidelined because of fear of volatility in the equities market."
"The long-running bull market in bonds is not necessarily over, but uncertainty is there and it's a real factor," added George Hashbarger, head of BPV sub-adviser Quintium Advisors. "Historically, the best way to handle such investment climates has been to create alternatives. Institutions and investors with assets on the sidelines may find BPVLX to be a refreshing change of pace--especially given the low fees."
BPV recognizes that the current investment environment and threat of rising interest rates has created greater demand for alternative fixed income solutions. Using a variety of option strategies, the fund seeks to establish downside protection while simultaneously creating income with the new fund. Collaring, the process of purchasing a put option while selling a covered call option, is one important option strategy used for the fund by helping establish a more highly focused risk/return profile.
"If interest rates continue to rise, the threat against bonds and fixed income investments may become higher than ever," said West. "The fund can also help investors reduce exposure to unhedged equity markets, especially for our clients whose assets are suffering from the effects of inflation."
The distribution of the Low Volatility Fund (BPVLX) signals the beginning of an ambitious year for BPV Capital and the BPV Family of Funds, including additional product rollouts and a campaign to meet significant pain points for advisors and investors.
The BPV Family of Funds, with $156.7 million in assets as of annual closing December 31, 2013, includes BPV Core Diversification Fund and BPV Wealth Preservation Fund. The funds, with the addition of the BPV Low Volatility fund, provide a complete range of solutions that apply time-tested investment principles with a very conservative approach. While each fund takes advantage of different strategies and targets different asset classes, the three funds share the overarching BPV objective to seek long-term capital appreciation.
BPV Capital Management is built on the simple belief that all investors deserve the ability to retire well. In our view, every individual should have the ability to achieve his or her own "back porch vista" through careful planning and saving. In our evolution from family office, to advisory firm, to manager of a family of funds, we've sat in every chair at the table, which means that we have a unique understanding of the challenges each member of the BPV family faces. For more information on BPV, fill out the form below or call 877-819-2188.
The BPV Family of Funds are distributed by ALPS Distributors, Inc. ALPS Distributors, Inc. is not affiliated with BPV Capital Management, LLC.
An investor should consider investment objectives, risks, charges and expenses carefully before investing. Request a prospectus which contains this and other information by calling toll free (855) 784-2399 or visiting www.bpvfunds.com. Read the prospectus carefully before investing or sending money.
The fund is new and has a limited operating history.
Mutual fund investing involves risk. Principal loss is possible. ETFs are subject to risks similar to those of stocks including those regarding short selling and margin account maintenance. Diversification does not eliminate the risk of experience investment losses. There is no assurance that this investment strategy will consistently lead to successful investing.
The S&P 500® is the Standard & Poor's composite index of 500 stocks, a widely recognized, unmanaged index of common stock prices. You cannot invest directly in an index.
A Bull Market is a financial market of a group of securities in which process are rising or are generally expected to rise.
A Put Option is a contract that gives the owner of a security the right, but not obligation, to sell his or her security to a purchaser at a specific price and a time.
A Covered Call is an option strategy in which an investor holds an underlying security and then writes call options in order to potentially generate additional income.
A Pain Point is a problem or need a business or company aims to solve.
BPV362 Exp. 2/28/2014
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