SAN DIEGO--(BUSINESS WIRE)--San Diego-based RIA firm, Measured Risk Portfolios, Inc., is pleased to announce the one-year anniversary of its Measured Risk Strategy Fund (MRPAX/MRPIX). The Fund is an actively managed, tactical, short-volatility mutual fund designed to be bought and held.
The Fund seeks to enhance portfolios’ risk-adjusted return potential.
“In the past it’s been difficult to get exposure to short volatility without significant risk,” says Larry Kriesmer, CLU, ChFC, Measured Risk Portfolios co-founder. “Measured Risk Strategy Fund offers exposure to an asset class — as measured by the Short Volatility Index or SPVXSPIT — that has delivered four times the returns of the S&P 500 Index over the last 10 years ending December 2017.”
“Traditionally, short-volatility products are not designed as long-term investments,” says Bernard Surovsky, CFS, co-founder of Measured Risk Portfolios. “Measured Risk Strategy Fund is designed to better manage risk and to be held over the long term.”
Short-volatility strategies have been a hot media topic, especially in light of recent events, yet they can also present a high risk of significant losses. The Fund introduces a way to obtain exposure to short-volatility strategies while seeking less of the risk offered by traditional products.
The Fund’s most recent performance can be found at www.mrp.fund.
While investors typically associate volatility with instability and uncertainty, short volatility as an asset class can be used to improve risk-adjusted return. With its positive equity market correlation, we believe short volatility may be an appropriate substitute for traditional equity exposure.
About Measured Risk Strategy Fund: The Fund seeks total return from capital appreciation and, to a lesser extent, income. The Fund offers “buy-and-hold” exposure to a tactical trade, unlike Exchange Traded Products (ETPs) designed for active traders. It may invest up to 20% in options on volatility-linked ETPs to capitalize on flat or declining levels of volatility, while the balance (80% or more) is invested in short-term fixed income (i.e., Treasury Bills) which seeks to limit maximum overnight drawdown risk versus volatility ETPs. Launched in December 2016, the Fund offers tactical exposure to short volatility via options and attempts to limit losses in periods of rising volatility.
About Measured Risk Portfolios: Measured Risk Portfolios is a San Diego-based RIA firm founded in 2007 by Larry Kriesmer, CLU, ChFC and Bernard Surovsky, CFS to launch investment strategies that did not yet exist for their clients at Kingsroad Financial & Insurance Services. Each founder has more than 20 years of experience in securities trading and using options. The team uses proprietary portfolio construction methods to generate returns and has been trading volatility as part of its strategy. The firm launched Measured Risk Strategy Fund in December 2016. The Fund is an actively managed, tactical, short-volatility mutual fund designed to be bought and held. For more information, please visit www.mrp.fund.
The Fund employs various strategies to achieve the objective of capital appreciation and income. The primary tool to achieve this objective is the use of derivatives, primarily options. Options involve risk and are not suitable for all investors. The use of options and the resulting high portfolio turnover may expose the Fund to additional risks that it would not be subject to if it invested directly in the securities underlying those options. The Fund may experience losses that exceed those experienced by funds that do not use derivatives, options and hedging strategies. Purchased put or call options may expire worthless and may not deliver the expected return due to time value decay. Written call and put options may limit the Fund’s participation in gains and may amplify losses in market declines. The Fund’s losses are potentially large in a written put or call transaction. If unhedged, written calls expose the Fund to potentially unlimited losses.
The Fund is nondiversified and as a result, changes in the value of a single security may have a significant effect on the Fund's value. Other risks include U.S. Government securities risks and investments in fixed income securities. Typically, a rise in interest rates can cause a decline in the value of fixed income securities or derivatives owned by the Fund. Volatility Exchange Traded Products (ETPs) may have significantly greater daily movements than that of the broad US equity markets. Investors cannot directly invest in an index and unmanaged index returns do not reflect any fees, expenses or sales charges. ETPs are subject to investment advisory and other expenses, which will be indirectly paid by the Fund. As a result, the cost of investing in the Fund will be higher than the cost of investing directly in ETFs and may be higher than other mutual funds that invest directly in stocks. ETFs are subject to specific risks, depending on the nature of the Fund. The Fund may buy or sell options on volatility related ETPs, such as: (referenced positions are subject to change and should not be considered investment advice).
Investors should carefully consider the investment objective, risks, charges and expenses of the Measured Risk Strategy Fund. Mutual funds involve risk, including possible loss of principal. There is no guarantee the Fund will meet its objective. This and other information is contained in the prospectus and should be read carefully before investing. For a prospectus please call Measured Risk Portfolios at (855) 907‐3407 or at www.mrp.fund. The Funds are distributed by Northern Lights Distributors, LLC, member FINRA / SIPC. Northern Lights Distributors, LLC is not affiliated with Measured Risk Portfolios, Inc. 3247-NLD-2/20/2018