- Cboe Vest celebrates 5-year anniversary of its groundbreaking Buffer Fund (symbol: BUIGX), which has brought defined outcome investing to a broader set of investors.
- The Fund’s methodology and infrastructure served as the blueprint for the $5 billion+1 “buffer category” of more than 75 funds that provide access to the buffer investment strategy.
- Since launching the first buffer fund in 2016, Cboe Vest has accumulated over $4.22 billion2 in assets under management and supervision with strategies designed to buffer downside losses, enhance gains, provide consistent income, and manage volatility.
- $1.29 billion3 of inflows YTD for the 70+ mutual funds, exchange traded funds (“ETFs”), unit investment trusts (“UITs”), and Collective Investment Trusts (“CITs”) managed or supervised by Cboe Vest.
McLEAN, VA / ACCESSWIRE / September 15, 2021 / Cboe Vest Financial LLC (“Cboe Vest”) announced today that the Cboe Vest S&P 500 Buffer Strategy Fund (the “Fund”) – the category-creating invention that heralded a lineup of more than 75 buffer funds – has completed a five-year track record. The Fund’s Institutional share class (Ticker: BUIGX) earned a 5-Star 5-Year and Overall Morningstar Rating.4
With the Fund’s inception on Aug. 23, 2016, equity investors gained access for the first time to a Buffer (or “Buffer Protect”) risk-management strategy inside of a registered fund, which seeks to protect or “hedge” a targeted level of downside losses, while allowing participation in potential upside gains to a cap. The Fund’s Buffer Protect Strategy had previously been accessible to only select investors in structured notes or annuities.
The ground-breaking Cboe Vest fund, which tracks the Cboe S&P 500 Buffer Protect Index (SPRO), invests in a laddered portfolio of Buffer Protect strategies, with 10% downside buffer protection and caps that recalibrate to prevailing levels of the S&P 500 each month.
While the Fund launched in 2016, the body of work leading up to it began in 2012, when the Cboe Vest team started designing the methodology (see patent application) for the Buffer Strategy and indexes, developing the trading infrastructure, and collaborating on facilitating the regulatory framework for buffer strategy-based registered funds. Cboe Vest’s leading-edge methodology has since been incorporated into more than 75 buffer investment products, collectively representing $5 billion+.
“It was in the decline of the structured notes market following the 2008 financial crisis, when the seeds of Cboe Vest were sown. Investors recognized the liquidity and credit risks embedded in structured notes when Lehman Brothers, one of the larger issuers of structured notes, went bankrupt. Our team at Cboe Vest has strongly felt there should be a way to deliver the defined outcomes of structured notes, but without some of the major drawbacks that came to light in the crisis. We invented Target Outcome (also known as “defined outcome”) Investments(R), offering these outcomes in a fund regulated under the Investment Company Act of 1940 using exchange traded FLEX options, for the first time ever in 2016,” said Karan Sood, CEO of Cboe Vest.
“Seeing the buffer category of funds grow in five short years to more than $5 billion, has been gratifying. We’ve since also extended the Target Outcome lineup to include Target Income Strategies(R), Enhanced Growth Strategies and Target Volatility Strategies,” Sood added.
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 (855) 979-6060 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, manage Bitcoin volatility, or provide consistent income. Such solutions are available as mutual funds, exchange traded funds (ETFs) and customizable managed accounts / sub-advisory services.
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 or by visiting cboevest.com/mutual-funds. Please read the prospectus carefully before investing. Distributed by First Dominion Capital Corp., Richmond, VA. Member FINRA.
The Fund may invest in derivative securities. These financial instruments derive their performance from the performance of an underlying asset or index and can be volatile. 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. 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 will incur higher and duplicative expenses when it invests in mutual funds and exchange-traded funds (“ETFs”). There is also the risk that the Fund may suffer losses due to the investment practices of the underlying funds. The Fund’s return may not match or achieve a high degree of correlation with the return of the Index. A number of factors may affect the Fund’s ability to achieve a high degree of correlation with the Index, and there is no guarantee that the Fund will achieve a high degree of correlation.
©2021 Morningstar. All rights 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.
Copyright © Cboe Vest Financial Group 2021. Target Outcome Investments and Target Income Strategies are registered trademarks of Cboe Vest Financial.
1 Assets in mutual fund and ETFs that provide access to a buffer strategy as of 8/31/2021 (including Buffer mutual funds from Cboe Vest and Buffer ETFs from First Trust, Innovator, Allianz SE, TrueShares, and Pacer).
2 Cboe Vest Assets under management and supervision as of 8/31/2021.
3 YTD inflows as of 8/31/2021.
4 The 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 85 funds in the Options Trading category, based on risk-adjusted return as of 8/31/2021. The 5-Year Morningstar Rating for Cboe Vest S&P 500 Buffer Strategy Fund is out of 55 funds in the Options Trading category, based on risk-adjusted return as of 8/31/2021. Past performance is no guarantee of future results. The Morningstar Ratings are for the Institutional share class only; other classes may have different performance characteristics.
The Morningstar RatingTM for funds, or “star rating,” is calculated for mutual funds 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 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.
SOURCE: Cboe Vest Financial LLC
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