m+ funds | Preservation
Preservation funds aim to help investors who fear market losses, maintain market exposure, or invest excess cash.
Defined Preservation 95 Fund Goal:
Intended to deliver an ETF’s positive price appreciation to a cap, and partially protect principal by defining a maximum loss.
Who should consider a Defined Preservation 95 fund?
“I am bullish on the markets but I would like to limit my loss exposure to a defined amount.”
“My investment strategy includes a strategic exposure to equities, but I tend to place a high value on risk management.”
How does a Defined Preservation 95 Fund work?
The fund provides exposure to a broad-based market ETF over a fixed period of time, usually ranging from two to five years.
At the end of the period, if the ETF has generated a positive price return, the investor receives that return, up to a maximum return level. If the ETF has generated a negative return, the investor is exposed to that loss but only up to a maximum amount of the decline.
Hypothetical results in different market environments
ETF Price
Return
Return
The hypothetical results are illustrative only and are not actual results. You should not place undue reliance on hypothetical illustrations or results. The above does not account for dividends on the ETF or m+ Preservation Fund ongoing fees and expenses. The above graph is intended to illustrate potential hypothetical outcomes and is therefore based on transaction terms and hypothetical ETF returns. It does not reflect any actual past performance and, therefore, does not reflect returns that an investor could have received. Investors purchasing units are subject to upfront sales charges and organization costs, which vary per fund depend on the type of account purchasing the units, all as described in the corresponding prospectus. Potential investors should refer to the prospectus, which details fees and expenses, as well as other important matters. Investors in m+ funds do not receive dividends.
Defined Preservation 100 Fund*
Defined Preservation 100 Fund Goal:
Intended to deliver an ETF’s positive price appreciation up to a cap, and insulate fully against its losses.
Who should consider a Defined Preservation 100 fund?
“I know I need to be in equities for long-term portfolio growth, but I am not comfortable with a big loss.”
“I am going to stay in cash until there is a better time to buy into the stock market.”
“I will be spending from my portfolio so it’s important that I reduce the impact of losses.”
How does a Defined Preservation 100 Fund work?
The fund provides exposure to a broad-based market ETF over a fixed period of time, usually ranging from two to five years.
At the end of the period, if the ETF’s price has appreciated, the investor receives that return up to a maximum cap. If the ETF has generated a negative return, the investor does not bear that loss.
Hypothetical results in different market environments
ETF Price
Return
Return
The hypothetical results are illustrative only and are not actual results. You should not place undue reliance on hypothetical illustrations or results. The above does not account for dividends on the ETF or m+ Preservation Fund ongoing fees and expenses. The above graph is intended to illustrate potential hypothetical outcomes and is therefore based on transaction terms and hypothetical ETF returns. It does not reflect any actual past performance and, therefore, does not reflect returns that an investor could have received. Investors purchasing units are subject to upfront sales charges and organization costs, which vary per fund depend on the type of account purchasing the units, all as described in the corresponding prospectus. Potential investors should refer to the prospectus, which details fees and expenses, as well as other important matters. Investors in m+ funds do not receive dividends.
-
*Selected Investment Risks
-
An investment in units of m+ funds may not be appropriate for all investors. Units in any m+ fund are offered only by prospectus. You should read carefully the prospectus for any fund before investing, including the risks described therein.
- Investors purchasing units are subject to upfront sales charges and organization costs which vary per fund and depend on the type of account purchasing the units, all described in the corresponding prospectus.
- The value of the fund will decrease by ongoing fees and expenses.
- The trusts are designed for investors who intend to hold the units until the trust mandatory dissolution date.
- The structure of these securities may be complex and the suitability of an investment should be considered based on your investment objective, risk tolerance, financial goals and time horizons.
- The value of the fund will vary and fluctuate as the FLEX listed options do. Prior to the fund’s maturity date, the fund may not increase in line with changes in the referenced ETF. FLEX option prices are impacted by such market factors as time left to maturity, interest rates, and implied volatility.
- The ability of the trust to meet its objective depends on the OCC’s ability to meet its obligations.
- Unlike a direct investment in the referenced ETF, investors in the fund are not entitled to receive dividends.
- Liquidity of the listed options used in a fund may be limited in certain circumstances.
- You should consider the portfolio’s investment objective, risks, charges and expenses carefully before investing. Contact your financial advisor to request a prospectus, which will contain this and other information about the portfolio. Read it carefully before you invest.
Securities products and services are offered by iCapital Markets LLC, a registered broker-dealer, member FINRA and SIPC, and an affiliate of iCapital, Inc. These registrations and memberships in no way imply that the SEC, FINRA, or SIPC have endorsed any of the entities, products, or services discussed herein. Alaia Capital LLC and m+ funds are affiliated with iCapital Markets LLC. “iCapital” and “iCapital Network” are registered trademarks of Institutional Capital Network, Inc.
-