|Euro Pacific Asset Management Launches EP Strategic US Equity Fund|
Euro Pacific Asset Management Launches EP Strategic US Equity Fund
Fund seeks to invest in US equity securities with potential to benefit from declining dollar and overseas growth.
(Newport Beach, CA) - March 1, 2012 - Euro Pacific Asset Management, LLC, a Newport Beach, CA-based asset manager affiliated with Peter Schiff's brokerage firm, Euro Pacific Capital, is pleased to announce the launch of the EP Strategic US Equity Fund. The fund, which will trade under the symbol EPUSX, is the seventh fund offered by Euro Pacific Asset Management. Previously launched funds from the group have focused on such strategies as international value (EPIVX), international fixed income (EPIBX), small cap Asian equities (EPASX), Chinese equities (EPHCX), inflation protection (EPHAX) and Latin American equities (EPLAX).
The EP Strategic US Equity Fund aims to provide capital appreciation and income over a long-term investment horizon by primarily investing in US-domiciled companies that the fund managers believe may benefit from increasing international sales in overseas markets.
The Fund is overseen by Peter Schiff, investment committee chairperson, and managed by Jim Nelson, CFA; the same team that oversees Euro Pacific Asset Management's other fund offerings. Patrick Rien, CFA, will serve as co-manager of the Fund. The Fund is designed for US-based investors who would like get exposure to US equity markets by owning a basket of American companies that derive a majority of their earnings from overseas. It is expected that such companies will benefit from an environment of US dollar weakness.
"Many American investors believe strongly that global economic conditions will continue to push up key foreign markets at a faster growth trajectory than what will likely be seen in the United States" said Peter Schiff. "At the same time, many of these investors want, or in some cases need, to maintain exposure to the US equity market. We hope to bridge this gap by offering a fund that holds US companies that derive a majority of their earnings abroad."
The Fund's portfolio management team will use a top-down approach to target attractive markets abroad, and a bottom-up approach to select US companies with the best fundamentals that have exposure to those markets. The team will favor markets that have shown a willingness to allow their currencies to strengthen against the US dollar, and that have high expected GDP growth, positive real interest rates, a sustainable current account surplus, and low levels of private and public debt. Additionally, the team will focus on companies that may benefit from country-specific trends such as growth in consumer spending, increasing foreign investment, or plentiful access to natural resources.
"In an environment where the Dollar is weakening, it is of critical importance for investors to understand that some US companies are likely to perform better than others," said Jim Nelson. "With the EP Strategic US Equity Fund, an investor can own US businesses with overseas exposure to what we believe are the most attractive markets, while minimizing ownership of those firms focused solely on the spending habits of US consumers."
The Fund can now be bought through a brokerage account at Euro Pacific Capital, www.europac.net. Investors can also receive an application on the Fund's website, www.europacificfunds.com, or by calling 1-888-558-5851. Other broker-dealers may also sell shares of the Fund through their own programs.
You should consider the Fund's investment objectives, risks, charges and expenses carefully before investing. For a prospectus or summary prospectus, each of which contains this and other information about the Fund, call 1-888-558-5851 or visit www.europacificfunds.com. Please read the prospectus or summary prospectus carefully before investing or sending money.
Foreign investments present additional risk due to currency fluctuations, which means the value of securities can change significantly when foreign currencies strengthen or weaken relative to the US dollar, economic and political factors, government regulations, differences in accounting standards and other factors. Investments in emerging markets involve even greater risks. The Funds will be more susceptible to the economic, market, political, regulatory, local risks and potential natural disasters of the European and Pacific Rim regions than a fund that is more geographically diversified. The economies Latin American countries are particularly sensitive to fluctuations in commodity prices, currencies and global demand for commodities. Investments closely tied to the Latin American region are generally characterized by high interest, inflation, and unemployment rates and may be more volatile.
Small, and mid cap stocks are subject to substantial risks such as market, business, size volatility, management experience, product diversification, financial resource, competitive strength, liquidity, and potential to fall out of favor that may cause their prices to fluctuate over time, sometimes rapidly and unpredictably. The prices of fixed income securities respond to economic developments, particularly interest rate changes, as well as to perceptions about the creditworthiness of individual issuers, including governments. Generally, fixed income securities decrease in value if interest rates rise and increase in value if interest rates fall, with lower rated securities more volatile than higher rated securities.
The Funds may be susceptible to government regulation, impacting hard asset sectors (such as the precious metals, natural resources, and real estate sectors). Precious metals and natural resources securities are at times volatile and there may be sharp fluctuations in prices, even during periods of rising prices. To the extent the Funds use futures, swaps, and other derivatives, it is exposed to additional volatility and potential losses resulting from leverage. The use of derivatives involves risks different from, and possibly greater than, the risks associated with investing directly in the underlying assets. Derivatives can be highly volatile, illiquid, and difficult to value. The Funds may be subject to greater risks than a fund whose portfolio has exposure to a broader range of sectors.
The Euro Pacific Funds are distributed by Grand Distribution Services, LLC.