Princeton Premium Fund - Class A · NASDAQ:PPFAX
Princeton Premium Fund - Class A — Investor Presentation (June 2020)
16 slides from Princeton Premium Fund - Class A's investor presentation, Jun 30, 2020
Slide 1: Princeton Premium Fund
PRINCETON PREMIUM FUND STRIVING TO PROFIT FROM THE SCIENCE AND ART OF TAKING RISK PRINCETON FUND Y ADVISORS, LLC
Slide 2: Disclosures
D ISCLOSURES Investors should carefully consider the investment objective, risks, charges and expenses of the Princeton Premium Fund. This and other information is contained in the prospectus and should be read carefully before investing. For a prospectus please call the Princeton Premium Fund at 1-
Slide 3: Princeton Premium Fund – Executive Summary
PRINCETON PREMIUM FUND – EXECUTIVE SUMMARY The Fund’s goal is to profit from the science and art of taking risk: • We take an approach similar to an insurance company in our investment strategy: To focus on the probability of success and the management of risk. • The Fund’s goal is to collect small
Slide 4: Strategy Focus
STRATEGY FOCUS We believe our success comes from focusing on the risk of each trade: • By maintaining a weekly investment horizon and relying on over 65 years of history on market movement, we believe it is possible to realize positive returns through options transactions while maintaining acceptabl
Slide 5: S&P 500 In Perspective – Odds in Our Favor
S&P 500 I N P ERSPECTIVE – “ ODDS IN OUR FAVOR” Historically, The S&P 500 index is relatively stable week to week. The strategy is designed to take advantage of these facts: • Since January 1950 through June 2020, in 3,678 weeks, the market has moved up or down less than 6% 98.48% of the time. S&P 5
Slide 6: Science and Art
“ SCIENCE” AND “ ART” A combination of “Science” and “Art” are utilized to manage the investment portfolio Science: The calculation of the probability that Art: Refining touches to the strategy to attempt a put option will expire worthless to minimize loss and maximize potential profits The sale of
Slide 7: Science
SCIENCE Investment process focused on risk where return is the goal, replicated weekly. Model Inputs Model Outputs Strike prices that meet our Volatility as measured by VIX probability standards Time to expiration Mean Put spreads: Standard Deviation Generally written at what we believe to be a 99.5
Slide 8: Art
ART Managing the Risk Return Profile of the Investment Strategy: • Time period for each trade – A weekly investment cycle has fewer unknowns than a monthly, quarterly, or annual cycle • Capital allocated to the trading strategy is based on a target return/risk profile established for the Fund • Allo
Slide 9: Risk Management
RISK MANAGEMENT Risk Management Techniques utilized: • One for one protective puts are purchased in an effort to define risk and maximize portfolio margining. • Long VIX options may be utilized in an attempt to hedge catastrophic market declines. • Collateral usage per contract is adjusted to permit
Slide 10: Portfolio Management
P ORTFOLIO MANAGEMENT The adviser will tactically allocate a specific amount of Fund capital to the strategy each week. • 50% in normal market conditions • 50-85% when market conditions may allow for a short-term tactical increase ▪ For example, after a spike in volatility • The portfolio team may d
Slide 11: Fund Performance
FUND P ERFORMANCE Historical Performance Year To Three Since As of June 30, 2020 Q2 2020 One Year Date Year Inception PPFIX Class I (NAV)* 3.44% -5.99% -3.91% 0.09% 1.65% PPFAX Class A (NAV)* 3.37% -6.12% -4.12% -0.13% 1.40% PPFAX Class A (Max Load)* -2.60% -11.54% -9.67% -2.07% -0.24% S&P 500 Total
Slide 12: Fund Facts
FUND FACTS AIP/AWP & Share Investment Redemption Management Class Inception Ticker CUSIP Subsequent 12B-1 Fee Class Minimum* Fee Fee Structure Date Minimum A Share PPFAX 66539A405 $2,500 $100 NONE 1.75% 5.75% Load* 0.25% 11/16/2016 I Share PPFIX 66539A603 $100,000 $100 NONE 1.75% No Load None 11/16/
Slide 13: Management Team
MANAGEMENT TEAM Princeton Fund Advisors, LLC, together with its affiliates, manages approximately $2.3 billion of assets (as of 06/30/2020) for institutional and private clients worldwide. Princeton Fund Advisors, LLC is a Registered Investment Advisor (“RIA”) with the SEC. The firm’s two Investment
Slide 14: Princeton Fund Advisors Team
P RINCETON FUND ADVISORS TEAM Portfolio Managers: Greg D. Anderson, Manager and President Prior to founding Princeton Fund Advisors, LLC and its affiliated entities, Mr. Anderson was a Senior Vice President and Managing Director of Investment Manager Search, Evaluation, and Due Diligence at Portfoli
Slide 15: Glossary
GLOSSARY • The S&P 500 Index is a capitalization-weighted index of 500 stocks. The index is designed to measure performance of the broad domestic economy through changes in the aggregate market value of 500 stocks representing all major industries. • VIX is the ticker symbol for the Chicago Board Op
Slide 16: Contact Us
CONTACT US Princeton Fund Advisors, LLC 1580 Lincoln Street Suite 680 Denver, CO 80203 855.897.5390 | Direct 303.382.2888 | Facsimile Info@PrincetonFundAdvisors.com | E-Mail www.PrincetonPremiumFund.com 3890-NLD-8/5/2020 There is no guarantee that this investment strategy will achieve its objectives
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