PHILOSOPHY

October 1, 2021

Global financial markets are expected to suffer the effects of increasing volatility and inflation over the coming years. As timely portfolio rebalancing must be efficiently achieved in a timely manner, both strategies offered by GAI aim to provide yield and a response to investor portfolio volatility.

  • The Precious Metals High Yield Bull Fund aims to offer a high-yield, portfolio volatility-reducing strategy, by opportunistically benefiting from the sales of 1 - 3 month PM ETF and PM equity index options. Sold against Fund holdings on an ongoing basis, the time premiums are set to grow from today’s lower levels along with the increased volatility that has historically been associated with PM advances. The growth in premiums suggests higher yields, while the bull move to which it is associated represents a positive “double whammy.” 


Option prices and implied volatility should advance geometrically to mirror the PM’s own anticipated acceleration higher, thereby causing higher fund yields, as well as capital gains; when common stocks advance, their yields decline unless dividends increase; this represents a distinct advantage for the Fund versus other financial instruments, particularly against today’s negative yields of -4% and the inherent risks in today’s equities prices.

 

  • Employing Dow or S&P index options to provide income as well as a hedge for investor portfolios, The Equity Index Income & Protection Fund represents a strategic and timely opportunity. Made to meet the challenges posed by today’s markets, this rules-based strategy seeks to provide superior profits, regardless the direction of the stock market.

The U.S. Equity Index Income & Protection Fund’s investment program is engineered to produce gains after positive quarters, though its principal design aims to generate 65 – 95% profits following sharp bear market-style declines, while deploying only 20% of the Strategy’s assets at a trade’s inception. This is evidenced by the backtests which, when viewed together, aim to benefit from any type of market that is foreseeable over any reasonable period of time. The rules-based Strategy, therefore, is engineered to be an all-season strategy.

Employing Dow or S&P index options to provide income as well as a hedge for investor portfolios, The Equity Index Income & Protection Fund represents a strategic and timely opportunity. Made to meet the challenges posed by today’s markets, this rules-based strategy seeks to provide superior profits, regardless the direction of the stock market.

Perceived pricing anomalies, which have led to two differentiated strategies, aim to protect investor portfolios via defined risk and asymmetrically performing strategies, thereby requiring little portfolio asset reallocation to achieve rebalancing at a time when client wealth is, effectively, exposed to potentially extreme market risks.

Given the nature of the products, coupled with market expectations, GAI provides investors with timely, strategic profit opportunities which, given the aforementioned volatility, should result in superior gains.