LEXINGTON, MA — (Marketwire) — 03/05/13 — BTS Asset Management, one of the nation-s oldest third party money managers, today announced the March 1, 2013 launch of their new mutual fund. The BTS Diversified Income Fund aims to rotate to the bond classes that may have the highest potential return while implementing stop-loss measures in an attempt to reduce downside volatility.
With 34 years of experience in bond portfolio management, BTS believes it brings a distinct approach for investors. Many investors look for bonds to primarily provide them income.
Generally, 30% of assets will remain allocated to high yield bond securities and 30% will remain allocated to total return securities at all times. 30% of assets will be allocated to either high yield or inverse high yield securities, and 10% will be allocated to either government or inverse government securities — these allocations depend on market conditions as measured by BTS- trend indicators.
Founded in 1979, BTS has been one of the nation-s premier third party money managers, providing quantitative risk management and portfolio solutions for mutual fund and variable annuity clients looking for income and/or total return over a three to five-year period. As of December 31, 2012, BTS currently manages approximately $1.9 Billion in AUM ($1.5 billion discretionary, $0.4 billion nondiscretionary). This includes 13,000 individual, corporate, and pension accounts and works with over 3,000 financial planners and registered representatives. BTS has multi-year track records in tactical fixed income and equity management dating as far back as 32 years, providing advisors and clients alike with the experience and service of an established money manager. BTS believes in a capital preservation approach seeking to deliver consistent, steady returns over the long haul, while mitigating downside risk to the extent possible.
A long position means buying a security with the expectation that the asset will rise in value. A short position means the sale of a borrowed security with the expectation that the asset will fall in value or buying a security whose value will rise when the security-s underlying holdings fall in value.
There is no assurance that the Fund will achieve its investment objective.
Mutual Funds involve risk, including possible loss of principal.
In general, the price of a fixed income security falls when interest rates rise. Derivative instruments involve risks different from, or possibly greater than, the risks associated with investing directly in securities and other traditional investments. The Fund may invest in high yield securities, also known as “junk bonds.” High yield securities provide greater income and opportunity for gain, but entail greater risk of loss of principal. Inverse mutual funds will prevent the Fund from participating in market-wide or sector-wide gains and may not prove to be an effective hedge. The use of leverage by the Fund or an Underlying Fund, such as borrowing money to purchase securities or the use of derivatives, will indirectly cause the Fund to incur additional expenses and magnify the Fund-s gains or losses. Positions in shorted securities and short positions are speculative and more risky than “long” positions (purchases) because the cost of the replacement security is unknown. A higher Fund turnover will result in higher transactional and brokerage costs. The U.S. Government may choose not to provide financial support to U.S. Government sponsored agencies or instrumentalities if it is not legally obligated to do so, in which case, if the issuer defaulted, the Fund might not be able to recover its investment. Underlying Funds 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 an Underlying Fund and may be higher than other mutual funds that invest directly in stocks and bonds.
0576-NLD-3/5/2013
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Media Contact:
Isaac Braley
President
BTS Asset Management
Bill Diamond
Communications Director
BTS Asset Management
800-343-3040