A new example of a structured mutual fund product ...
Structured Investment Management's S&P 500 Capital Appreciation Fund Now Offered By Charles Schwab & Co. and Fidelity Investments
PR Newswire
Posted: 2009-03-03 08:17:00
NEW YORK, March 3 /PRNewswire/ -- Investment management company Structured Investment Management Inc. (SIM) announced today that its new mutual fund, S&P 500 Capital Appreciation Fund (Nasdaq: SSPAX) is now available for purchase on the mutual fund platforms of Charles Schwab & Co. Inc. and Fidelity Investments.
The fund, which began operating in December 2008, is a principal-protected index mutual fund with a 10-year horizon. It is 100 percent invested in the stock market at all times, and, on the downside, offers shareholders a minimum return of at least 150 percent of initial NAV less certain fees and expenses if they stay invested for the full length of the fund's term. The fund's objective is to provide long-term growth while protecting investors' capital. Upside growth is achieved through S&P 500 indexing. Downside protection is achieved through the use of contractual agreements that will enable the fund manager to protect investors' principal and deliver a minimum return at the end of the 10-year period. Derivatives are used as a hedging mechanism, and are fully secured by cash to eliminate credit risk. For Class A shares, the Fund is expected to provide a minimum redemption value of $11,870 on a $10,000 initial investment, or just under 119 percent of the initial NAV. On the upside, the Fund is expected to trail the S&P 500 index by just under 2 percent per annum.
"We are very pleased to offer a unique investment that provides principal protection and the upside potential of the S&P 500 index through Charles Schwab & Co. and Fidelity Investments. Attractive in any market environment, the S&P 500 Capital Appreciation Fund is well-suited to current market conditions," said Ramesh Menon, SIM's president and founder. "Using a patent-pending approach, the fund is designed to overcome the poor performance of dynamic asset allocation strategies used by target date funds, many variable annuities, and certain principal-protected notes." He added that because it is a mutual fund, the product also offers tax and liquidity advantages not available with other principal-protected investments.
The company has filed for patent protection on the financial engineering used to provide the fund's protection mechanism.
About Structured Investment Management
Structured Investment Management (SIM), a boutique investment management firm headquartered in New York City, was founded in 2006 by Ramesh Menon, an expert in structured financial products and equity derivatives with almost 20 years of experience.
SIM operates at the nexus of several complex areas: derivatives structuring and risk management, securities and investment regulation, structured credit and taxation. It currently offers the following products and services:
Structured mutual fundsSub-advisory services to asset managersStructured product design and execution services
For more information about SIM, please visit its Web site, www.sim.us.com
