Three Strategies, One Fund
The SafeGuard CORE ONE Fund uses a proprietary mix of three separate and distinct investing techniques seeking broad market participation in growth periods and aiming to minimize downside risk during market drawdowns. These strategies, applied along with our management of cash and cash equivalents, are the foundation of CORE ONE. Together, the strategies seek to provide equity-like returns with less volatility than the overall market.
S&P 500 Index Strategy
The S&P 500 Strategy seeks to correspond generally with the returns of the S&P 500 Index through use of S&P 500 Index futures contracts. The index futures contracts are expected to represent, in aggregate, up to 120% of the value of the Fund’s net assets.
Protection Strategy*
Under the Protection strategy, which seeks to provide downside protection in declining markets, the fund purchases long dated put options on the S&P Index. If the S&P Index Strategy is larger than the Protection Strategy, protection may be incomplete.
*The fund is subject to principal loss and there is no guarantee the strategy will be successful.
Futures Overlay Strategy
To produce capital appreciation and diversification, the fund invests up to 25% of its total assets in a specific number of commodity-based strategies. These strategies are expected to have low correlation to each other and the equity markets.
The Purpose of Liquidity
For liquidity, hedging purposes, and to enhance performance, the fund is designed to keep a significant portion of its assets in cash or cash equivalent investments. In a rising interest rate environment, this allows for the fund to capture equity like returns.