FORT LAUDERDALE, Fla.–(BUSINESS WIRE)–Sept. 29, 2003–Black Diamond Asset Management (BDAM) announced today that it has launched the second series of its family of actively managed mutual fundsthat utilizes capital allocation of alternative investments instruments in pursuit of absolute returns with measured capital protection for investors. The Funds effective date was on September 2,2003 and the offering period is open through October 31, 2003. The investment date is set for November 7, 2003.
Black Diamond Asset Management is the first investment management company to bring institutional management of alternative investment instruments in the pursuit of absolute returns with minimal capital at risk to the retail mutual fund investor. Currently Black Diamond is offering the following mutual funds:
— BD 500 Protected Growth Fund II (S&P 500 Index)
— BD 100 Protected Growth Fund II (NASDAQ 100 Index)
— BD 400 Protected Growth Fund II (S&P Mid-Cap 400 Index)
— BD 2000 Protected Growth Fund II (Russell 2000 Index)
— BD Total Index Protected Growth Fund II (Wilshire 5000 Total
Market Index)
— BD LS Protected Growth Fund II (CSFB Tremont Hedge Fund
Long/Short Equity Index) Offered only to qualifying high net
worth investors.
The Funds are subadvised by Broadmark Asset Management, LLC. All of the Funds seek to meet or exceed the performance of the benchmark index over the 7-year investment period through the active management of index options and options on ETFs. The Total Index Fund II allows the subadvisor to trade options on the four stated indices, allocated at its discretion. Depending on the price of the US Treasury Zero’s on the investment date, all of the Funds will offer between 90% to 100% principal protection (including all sales loads) at maturity. The Manager provides for measured downside protection through the use of Zero Coupon U.S. Treasury Bonds. All funds offer daily liquidity at NAV, no surrender charges and a profit protection feature. Shares sold prior to maturity may be worth more or less than their original cost.
At least 70% of the Series’ assets will initially be invested in designated Treasury Securities, which will lower the amount invested in the fund. Investors are subject to income taxes annually on the accreted interest of the Series’ zero coupon bond holdings. The series is subject to higher fees than many non-principal protected funds. You would not receive full protected amount on the principal protection maturity date if: There are insufficient designated Treasury securities to provide the protected amount on the principal protection maturity date; The Series has insufficient assets to pay its expenses, causing the Series to sell designated Treasury securities prior to the principal protection maturity date (however, the Series will maintain a cash reserve of 5% of its net assets for the purpose of paying its expenses); You redeem some or all shares in a Series prior to the principal protection maturity date or fail to reinvest all dividends and distributions in additional shares of the Series; or the Series incurs any extraordinary expenses, such as litigation expenses not incurred in the ordinary course of business, which could lower the amount of principal protection.
About Black Diamond Asset Management, LLC
Black Diamond Funds is a family of protected growth mutual funds, which utilize capital allocation of alternative investment instruments in the pursuit of absolute returns for the retail investor. Black Diamond’s focus is on the active management of capital investing in alternative investment instruments and providing for measured downside protection to retail investors.
About Broadmark Asset Management, LLC
Broadmark Asset Management (BAM) is the subadvisor to the Black Diamond Funds, is a New York based institutional investment management firm and is employing its proprietary investment models to pursue the fund’s investment objectives. BAM’s principals have worked together for eight years utilizing these models for other similar strategies. The California Public Employees’ Retirement System (CalPERS) owns a significant equity interest in Broadmark.
ALPS Distributors, Inc. is the Distributor of Black Diamond Funds.
To receive a prospectus with more complete information including risks, fees and expenses, call Black Diamond Funds at 866/726-1700 or visit http://www.blackdiamondfunds.com. Read the prospectus carefully before investing or sending money.
