Iowa-Based Company with Wall Street Savvy Has Developed a Concept That Gives Retail Investors Access to Endowment Structure with Daily Liquidity and $1000 Min. Investment
Cedar Rapids, IA, May 22, 2014 --(PR.com
)-- An Iowa-based Company with Wall Street savvy has developed a concept that gives retail investors access to an endowment structure with daily liquidity and a $1,000 minimum investment. “A fund with this combination is hard to find,” says Joe Russo, CEO of Advantage Financial Group (AFG), which developed the concept. “Endowment structure” means that the investment program has an alternative investments orientation and seeks to provide shareholders with both asset allocations across various asset classes and portfolio management services in one product.
The new product is Gottex Endowment Strategy Fund, managed by Gottex Fund Management. Gottex’s clients have traditionally been institutional investors and family offices while AFG is experienced in serving the mass affluent.
Two years ago, AFG began working on a concept to give its retail investors access to hedge funds, private equity and private partnerships that invest in real estate, products typically only available to ultra-high net worth investors. AFG, a privately-held partnership based in Cedar Rapids, Iowa, has 65,000 “Middle America” clients, with typical investments of $2,000 to $2 million. AFG was attracted to the endowment fund strategy developed by Ivy League universities because it is attentive to the institutions’ need for conservatism. At the core of the endowment fund are large capitalized equities. Around that core are added assets to balance the fund and manage the potential loss that comes with owning a large core equity portfolio.
AFG sought out Gottex to develop and manage the fund because of its access to private equity and hedge funds, global equity and global fixed income. Gottex has offices around the world, including Boston, New York, London, Germany and Singapore.
Russo says the fund may appeal to the investor who wants to hedge the volatility of mutual funds, using an investment philosophy we believe can generate returns above inflation in the medium to long term. Gottex’s annual fee is guaranteed not to exceed 1.74 percent for I-shares and 1.99 percent for A-shares. “It’s intended to be a vehicle that doesn’t tolerate loss,” says Russo. “In Iowa, we say the best way to make money is not to lose it in the first place.”
Founded in 2001 as a traditional producer alliance, Advantage Financial Group (AFG) is now a privately held professional partnership based in Cedar Rapids, Iowa. Along with Advantage Investment Management, a wholly owned subsidiary, AFG has office locations in 12 U.S. states, and provides a diverse range of independent financial advisors with access to the financial products, intellectual capital and specialized resources they require to pursue their clients’ sophisticated financial needs. This is accomplished through a unique practice structure that is governed by advisors, managed by proven leaders, and committed to improving advisors’ growth and efficiency.
Securities offered through LPL Financial Member FINRA/SIPC. Investment advice offered through Advantage Investment Management, a registered investment advisor. Advantage Investment Management and Advantage Financial Group are separate entities from LPL Financial.
Alternative and hedge fund investments are speculative and involve substantial risk. It is possible that investors may lose some or all of their investment. There can be no assurance that a Fund’s investment objective will be achieved or that its investment program will be successful. An investment in the Fund is not intended to constitute a complete investment program and should not be viewed as such. The Fund’s principal risk factors are like all investments in securities, you risk losing money by investing in the Fund.
Investors should consider the investment objectives, risks, charges and expenses of the investment company carefully before investing. The prospectus and, if available the summary prospectus, contain this and other important information about the investment company. You can obtain a prospectus and summary prospectus from your financial representative. Read carefully before investing.