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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, and

-  returns from the hedge component that creates "downside protection".

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. 

Portfolio Managers

John Longo, Ph.D., Chief Investment Officer: Mr. Longo plays a key role in developing Beacon’s macroeconomic outlook and serves as co-portfolio manager for several of the firm’s investment products. He has 20 years of investment management experience. He contributes to Beacon’s thought leadership in the field of investment management and strategy by representing the firm, as invited speaker, at numerous financial related conferences throughout the world. Mr. Longo is also a Professor of Finance at Rutgers Business School, and has taught in its undergraduate, MBA, Executive MBA, and International Executive MBA programs for more than 15 years. Previously, Mr. Longo was a Vice President at Merrill Lynch, where he played an instrumental role in creating and managing investment strategies for Merrill Lynch’s Strategy Power product. Mr. Longo holds a Ph.D. and an M.B.A. in finance and a B.A. in computer science and economics, all from Rutgers University. He is a Chartered Financial Analyst (“CFA”) charterholder.

Erman Civelek, CFA, CAIA, CFP, Senior Vice President:  Mr. Civelek is responsible for portfolio management, and asset allocation at Beacon. He leads Beacon’s monthly investment committee meetings and his particular area of expertise is alternative asset class strategies. Prior to joining Beacon, Mr. Civelek served as a lead portfolio manager at the Acertus Capital Management, LLC, where he managed three long-short equity strategies using a systematic, rules-based process designed to control risk and deliver predictable returns. He also worked at The MDE Group, where he carried out fundamental and technical analysis with respect to investment strategies and the financial markets. He developed and maintained The MDE Group’s quantitative and qualitative due diligence process used for evaluating external investment managers. Mr. Civelek graduated summa cum laude with a B.A. in economics from Rutgers College, where he was a member of Phi Beta Kappa and Golden Key National Honor Society beginning in his junior year. He is also a CFA charterholder and holds the Chartered Alternative Investment Analyst (CAIA) designation. He received his certified financial planner (“CFP”) designation from the College for Financial Planning in Denver, Colorado.

Christopher Shagawat, CFA, Vice President: Mr. Shagawat is a portfolio manager with the Investment Adviser. Mr. Shagawat works directly with the senior portfolio management team in the development and implementation of Beacon Trust’s strategies, supporting the process with in-depth portfolio analysis and performance attribution. Mr. Shagawat began his career in the financial service industry four years ago with Acertus Capital Management, a subsidiary of The MDE Group. Mr. Shagawat graduated summa cum laude with a B.S. in finance from Rutgers Business School and is also a CFA® charterholder.


Related Fund Performance (password required)


Fund Facts

  Institutional Share A Share
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



Factsheet (password required) |  Top Holdings |  Prospectus |  Statement of Additional Information


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.