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Hedged Equity Fund

JDIEX - I SHARES | JDAEX - A SHARES | JDCEX - C SHARES | JDSEX - R6 SHARES

Overview

AT A GLANCE
  • $53.6 M

    Portfolio Assets 5-19-2022

  • $9.83 NAV 5-19-2022
  • 1.92%

    Gross Expenses1

  • 1.38%*

    Net Expenses1

  • 470258708

    CUSIP

  • 8-3-2015

    Inception Date

*The Fund’s investment adviser has contractually agreed to reduce its fees and/or absorb expenses until at least March 19, 2023 for I Shares to ensure that net annual operating expenses will not exceed 1.25%, subject to possible recoupment from the Fund in future years.

Overall Morningstar rating as of March 31, 2022. Based on risk-adjusted returns. Category: Options-trading out of 104 funds.

45 Months

That’s how long it took the S&P 500 to recover its losses after 6/1/08.2

How are you addressing the damaging effects of market drawdowns?

33% ↑

That’s the approximate return needed to recover from a 25% drawdown.2

How common are drawdowns of 20% or greater? They happen 40% of the time.

“Stocks obviously don’t achieve new highs every day, so investors are usually in a state of portfolio drawdown. The timing, length and depth of these drawdowns can have a dramatic impact on financial plans”2

DRAWDOWNS

Drawdowns. They are rarely talked about and generally misunderstood. But they have always been a reality of investing and they can be a tremendous source of angst for your clients. Just consider that it took 45 months for the S&P 500 to recover its losses from its market high in 6/1/08. Many clients who had considered retiring in 2008, had to wait 3-4 years or longer just to recover what they’d lost. Yes, drawdowns can rob portfolios of gains and can disrupt the best of financial plans.

OUR SOLUTION

The Hedged Equity Fund is a low volatility equity strategy that uses an index options-based approach with the goal of reducing the volatility of long-only equity exposure and enhancing risk-adjusted return, thus providing a favorable risk reward profile.

  • Low volatility exposure to S&P 500 and protect in market downturns
  • Highly adaptable to changing volatility (VIX) levels via short-term laddered put options
  • Distinct hedging structure designed to provide potentially less downside risk and volatility during down markets
  • Seeks to provide low-to-negative correlation during market drawdowns
  • Aims to maintain a consistent portfolio hedge, by trading shorter term options, allowing for tactical adjustments when markets move outside of a normal selloff

WHICH TYPE OF CLIENT IS THIS FUND SUITABLE FOR?

The Portfolio will seek to achieve its objective by combining a long equity strategy with options.

When considering the Easterly Hedged Equity Fund, it may be most appropriate for investors seeking:

  • Protection during significant equity market downturns
  • Equity participation with potential for lower volatility
  • Enhanced risk-adjusted returns

FUND OBJECTIVE

The Fund’s primary investment objective is capital appreciation. The Fund combines a domestic long equity position with an option overlay risk mitigation strategy. The Fund’s goal is to capture the majority of equity market returns, but with lower volatility as measured by standard deviation and downside risk.