Equity Alternative
The Equity Alternative program seeks to provide growth opportunities while minimizing drawdowns. The program has an Absolute Return objective. This philosophy strives to provide a positive return over a complete market cycle. Signals are generated using quantitative data and are fully objective.
The Equity Alternative program employs US Government Bond long and inverse mutual funds in an actively managed, tactical approach. Assets are allocated up to 100% to the inverse, long, or money market fund, according to the program’s model which is based on a combination of technical and fundamental analysis. Equity Alternative incorporates a risk management overlay that is designed to deliver lower market exposure during periods of high volatility in the Treasury Bond market.
Risk Assessment
Risks associated with the Equity Alternative program include principal risk and market, or systematic risk. Additionally, investments in income instruments are subject to interest rate risk as well as credit risk. While the program seeks to mitigate these risks by using active, tactical allocation approaches, that does not remove all risk. When interest rates increase, the market value of long US Government bond funds tends to decline. The program cannot be considered diversified among all asset classes and utilizes leveraged funds and sub-accounts.
Please consult your financial advisor for help deciding which program may be suitable for you.
Suitability:
Equity Alternative may be suitable for investors who seek actively managed long and inverse Treasury bond exposure, have a three-to-five year time horizon, moderate growth as their investment objective and who value an approach other than buy-and-hold. This program is not managed for tax efficiency.
Purcell Management Fees:
2.5% maximum annual fee with applicable breakpoints
Minimum Investment: $50,000 at Rydex Funds and Trust Company of America
Minimum Investment: $25,000 in a variable annuity
DISCLOSURE: All investments have the potential for loss as well as profit. No current or prospective investor should assume that future performance results will be profitable or equal the Purcell Advisory performance. Different types of investments involve varying degrees of risk, and there can be no assurance that any specific investment or investment approach will be profitable. The information provided here is intended to be general in nature and should not be construed as investment advice or as a recommendation of any specific fund, security or investment approach. Investors should consult with a financial advisor before investing.