Hedged Equity FundJDIEX - I SHARES | JDAEX - A SHARES | JDCEX - C SHARES | JDSEX - R6 SHARES
- $53.49 M
Portfolio Assets 10-15-2021
- $53.49 M
- $11.33 NAV 10-15-2021
*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 June 30, 2021. Based on risk-adjusted returns. Category: Options-based out of 81 funds.
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?
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. 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.
The Easterly Hedged Equity Fund is designed to do exactly what its name implies: manage risk. And because it is a fund that invests in equities, it is specifically focused on reducing the depth and duration of drawdowns and helping you manage clients’ emotions and keeping them invested through periods of increased market-volatility.
The Portfolio will seek to achieve its objective by combining a long equity strategy with options strategies that seek to manage risk during equity market downturns.
- The long equity strategy seeks to replicate the returns of the S&P 500 Index and potentially enhance these returns. Exposure to S&P 500 Index companies will be achieved primarily through exchange-traded funds (“ETFs”).
- The options strategies attempt to reduce the risk associated with the Fund’s long equity exposure with two different strategies – a low volatility strategy and a high volatility strategy.
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
The Fund’s primary investment objective is capital appreciation. By combining a domestic long equity core position with risk mitigation strategies, the Fund seeks to manage risk during significant equity market downturns and thereby enhance returns.