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Beacon Trust

Beacon Planned Return Strategy Fund

Beacon Planned Return Strategy Fund

The Fund seeks to capture most of the returns generated by U.S. equity markets in rising markets, while protecting against the market losses in declining markets by following a disciplined and systematic investment process. The returns sought to be generated by the strategy are derived from three distinct elements:

  • returns from directional market movements
  • returns from option premium or income
  • returns from the hedge component that creates "downside protection"

Fund Facts

The Fund’s investment objectives are capital preservation and capital appreciation. The Fund aims to achieve its investment objective of capital preservation by purchasing put options against the U.S. equity indices. The Fund aims to achieve its investment objective of capital appreciation by purchasing call options on U.S. equity indices and collecting premium income from selling call and put options against the U.S. equity indices. The Fund aims to achieve its investment objective through the systematic purchase of rolling investments or “tranches.” Each tranche is made up of long and short options traded on the performance of a broad market index. Index exposure may be gained through the use of additional options, a basket of securities, exchange traded funds (“ETFs”), or other means. 

head1 Institutional Share A Share
Ticker BPRLX BPRTX
Cusip 02110A597 02110A613
Gross Expense Ratio 1.20% 1.57%
Maximum Sales Charge N/A 5%
Redemption Fee 2% (60-days) 2% (60-days)
Minimum Investment $1,000,000 $5,000
Morningstar Category Option Writing Option Writing

Leadership Team

John -Longo, PhD, CFA

John Longo, PhD, CFA

Chief Investment Officer

Erman- Civelek, CFA, CAIA, CFP®

Erman Civelek, CFA, CAIA, CFP®

Senior Vice President
Investment Strategist

Christopher- Shagawat, CFA

Christopher Shagawat, CFA

Vice President
Portfolio Manager

Important Risks

Call option is the option to buy or sell a security at a predetermined price and date for a premium. Put option is the option to buy or sell a security at a predetermined price and date for a premium. Alpha is the difference between strategy performance and benchmark performance.

As with any mutual fund, there are risks to investing and loss of principal is possible.

Investing in derivative instruments can be volatile and involves various types and degrees of risks, depending upon the characteristics of a particular derivative. Derivatives may entail investment exposures that are greater than their cost would suggest, meaning that a small investment in a derivative could have a large potential impact on the performance of the Fund. 

 

Investing in options purchased over-the-counter bears the risk that the counter­party that wrote the option will be unable or unwilling to perform its obligations under the option contract. Such options may also be illiquid, and in such cases, the Fund may have difficulty closing out its option positions.
Investing in equity securities is generally volatile and riskier than some other forms of investment.  Common stock prices fluctuate based on changes in a company’s financial condition, on overall market and economic conditions, and on investors’ perception of a company’s well-being.  

 

Investing in ETFs can create the risk in liquidity, as an ETF might not be able to dispose of certain holdings quickly or at prices that represent true market value in the judgment of the ETF investment managers.  In addition, ETFs may invest in shares of other investment companies, including ETFs, as a means to pursue its investment objective. As a result of this policy, your cost of investing in the Fund will generally be higher than the cost of investing directly in such investment companies or with the risks of investing in an investment company. 

 

Investing in a “non-diversified” investment company subjects you to the risks of investing in fewer issuers, and may be more susceptible to a single adverse economic or regulatory occurrence. As a result, changes in the market value of a single security could cause greater fluctuations in the value of Fund shares than would occur in a diversified fund. 
It is possible to lose money on an investment in the Fund.  Investments in the Fund are not deposits or obligations of any bank, are not endorsed or guaranteed by any bank and are not insured or guaranteed by the U.S. government, the Federal Deposit Insurance Corporation, the Federal Reserve Board or any other government agency.

 

The Beacon Funds are distributed by ALPS Distributors, Inc.