- Fund tracks an index with a target outcome of two-to-one enhanced returns on the appreciation of the S&P 500 Index up to a cap, and one-to-one downside participation
- Fund provides access to a novel options-based smart beta approach, particularly relevant in moderate return environments
- Fund is one of the inaugural products in the rapidly growing Target Outcome Investment® space
MCLEAN, VA / ACCESSWIRE / February 10, 2020 / Cboe Vest Financial, LLC ('Cboe Vest'), the inventor of Target Outcome Investments, announced today that its Cboe Vest S&P 500 Enhanced Growth Strategy Fund (the 'Fund') completed a three-year track record. The Fund's Institutional share class ('ENGIX') received a 5-star Overall Morningstar Rating TM 1 and is ranked #1 out of 118 funds2 in the Options-based category for three years ending January 31, 2020. The Fund's Investor class ('ENGLX') and A class ('ENGAX') also received 5-star Overall Morningstar Ratings, and are ranked #2 and #3 respectively in the same category and period.2
The Fund tracks the Cboe S&P 500 Enhanced Growth Index ('SPEN') and invests in a portfolio of options-based strategies. Each strategy targets an annual outcome of two-to-one enhanced returns on the appreciation of the S&P 500 Index up to a variable cap, while providing one-to-one exposure to the losses.
The Cboe Vest S&P 500 Enhanced Growth Strategy Fund is the first and only index-based mutual fund offering broad access to this unique strategy, formerly available only in structured notes or over-the-counter derivatives. Structured to deliver higher returns relative to the S&P 500 in moderate (0% to 10%) return environments, the Fund complements investors' other smart beta, cap-weighted, or active U.S. large cap equity exposure.
The Cboe Vest Enhanced Growth Strategy Fund follows in the footsteps of Cboe Vest's Buffer Strategy Fund, whose Institutional class ('BUIGX') has continuously held a 5-star Overall Morningstar Rating3 since its three-year anniversary in August 2019. 'The Funds' Morningstar ratings and rankings affirm the extensive research, design and portfolio management expertise that we, as the pioneer of outcome-based investing, are known for,' said J. Steven Neamtz, President of Cboe Vest.
'There are numerous smart beta ETFs, actively managed mutual funds, as well as leveraged ETFs and mutual funds aiming for enhanced returns. We built the Cboe Vest Enhanced Growth Strategy Fund expressly to give investors the means to access higher upside potential, particularly in market environments with modest gains. Its performance speaks for itself,' Neamtz concluded.
The Fund is available on the major registered investment advisor (RIA) custodial platforms, as well as independent and regional brokerage platforms. For more information, visit cboevest.com/mutual-funds/ or call (703) 918-4949 for sales support.
About Cboe Vest
Cboe Vest Financial, LLC, a wholly owned subsidiary of Cboe Vest Group, Inc. offers institutional-quality Target Outcome Investments® built on the backbone of its unique investment philosophy, that strive to buffer losses, amplify gains or provide consistent income. The very first of these leading-edge investments, Cboe Vest's flagship Buffer Protect Strategy, was introduced in 2013. Today, these solutions are available as mutual funds, exchange-traded funds (ETFs), unit investment trusts (UITs), collective investment trusts (CITs), and customizable managed accounts / sub-advisory services. To explore the evolution of Target Outcome Investments, visit cboevest.com/#/timeline.
Past performance is no guarantee of future results.
Investors should consider the investment objectives, potential risks, management fees and charges and expenses carefully before investing. This and other information is contained in the Fund's prospectus, which may be obtained by calling (855) 979-6060. Please read the prospectus carefully before investing. Distributed by First Dominion Capital Corp., Richmond, VA. Member FINRA.
The Fund could experience a loss if derivatives do not perform as anticipated or are not correlated with the performance of other investments which are used to hedge, or if the Fund is unable to liquidate a position because of an illiquid secondary market. Each monthly tranche within the Fund's portfolio seeks to deliver the targeted enhanced upside participation in the predetermined price range based on the price performance of the S&P 500 Index from the third Wednesday of the month to which the tranche belongs to the third Wednesday of the same month the following year. For other time periods, the tranche could experience more than one-to-one losses in market declines. The Fund bears the risk that the Options Clearing Corporation (OCC) will be unable or unwilling to perform its obligations under the FLEX Options contracts. Additionally, FLEX Options may be less liquid. The Fund may seek to gain exposure to certain securities in excess of 100%. Such exposure will make the Fund more sensitive to movement in the value of those instruments which may magnify increases or decreases in the value of the Fund's portfolio.
1The Overall Morningstar Ratings for Cboe Vest S&P 500 Enhanced Growth Strategy Fund, a weighted average of three-, five-, and ten-year (if applicable) ratings, are out of 118 funds in the Options-based category, based on risk-adjusted return as of 1/31/2020. The Morningstar Ratings are for the Institutional share class (ENGIX), Investor class (ENGLX) and A class (ENGAX) only; other classes may have different performance characteristics. Past performance is no guarantee of future results.
2The Three-Year Morningstar Absolute Rankings for Cboe Vest S&P 500 Enhanced Growth Strategy Fund are out of 118 funds in the Options-based category as of 1/31/2020. The Three-Year Morningstar Absolute Rankings are for the Institutional share class (ENGIX), Investor class (ENGLX) and A class (ENGAX) only; other classes may have different performance characteristics. Morningstar absolute and percentile ranks are based on average annual total return relative to all funds in the same Morningstar category, which includes both mutual funds and ETFs, and does not include the effect of sales charges, if applicable. Absolute ranks are assigned in descending order for each fund in the category, with 1 being the top-performing fund. Funds with the same performance figure are assigned the same absolute rank.
3The Overall Morningstar Rating for Cboe Vest S&P 500 Buffer Strategy Fund, a weighted average of three-, five-, and ten-year (if applicable) ratings, is out of 118 funds in the Options-Based category, based on risk-adjusted return as of 1/31/2020. The Morningstar Rating is for the Institutional share class (BUIGX) only; other classes may have different performance characteristics. Past performance is no guarantee of future results.
FLEX Options are customizable options contracts traded on national exchanges and cleared by The Options Clearing Corporation. FLEX Options provide the ability to customize key contract terms (including strike prices, exercise styles and expiration dates) with the transparency, administrative ease and clearing guarantees of standard listed options.
Smart beta defines a set of investment strategies that emphasize the use of alternative index construction rules to traditional market capitalization-based indices. Smart beta emphasizes capturing investment factors or market inefficiencies in a rules-based and transparent way.
The Morningstar Rating for funds, or 'star rating,' is calculated for managed products (including mutual funds, variable annuity and variable life subaccounts, exchange-traded funds, closed-end funds and separate accounts) with at least a three-year history. Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a fund's monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The Morningstar Rating does not include any adjustment for sales loads. The top 10% of funds in each product category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. The Overall Morningstar Rating for a fund is derived from a weighted average of the performance figures associated with its three-, five-, and 10-year (if applicable) Morningstar Rating metrics. The weights are: 100% three-year rating for 36-59 months of total returns, 60% five-year rating/40% three-year rating for 60-119 months of total returns, and 50% 10-year rating/30% five-year rating/20% three-year rating for 120 or more months of total returns. While the 10-year overall star rating formula seems to give the most weight to the 10-year period, the most recent three-year period actually has the greatest impact because it is included in all three rating periods. Past performance is no guarantee of future results.
The receipt of this rating is not representative of client experiences because the award criteria do not consider client experience or input. The rating is not indicative of Cboe Vest's future performance, or any future performance pertaining to its clients' investments. Furthermore, the rating should not be construed by a client or prospective client as a guarantee that they will experience a certain level of results. The Morningstar Rating is based on objective, mathematical calculation and is not to be construed as an endorsement by Morningstar of any fund(s). The advisor is unaware of any undisclosed facts that could potentially invalidate the appropriateness of the rating.
©2020 Morningstar. All Right Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar not its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results.
Target Outcome Investment is a registered trademark of Cboe Vest Financial. Copyright © Cboe Vest Financial Group 2020.
SOURCE: Cboe Vest Financial, LLC
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