Rocky Mountain Technical Marketing

Thought Leadership for a Complex World

Rocky Mountain Technical Marketing, Inc. | Φ-Funds™

Fund structure offering the benefits of leverage without the value degrading effects of re-indexing

One of the more popular groups of products in the new world of financial services is leveraged index products.  These products offer investors the opportunity to achieve leveraged returns on diversified portfolios of assets without running the risk of margin calls.  But, almost all current product offerings suffer from a pernicious problem:  their value declines in volatile markets, regardless of the whether the market goes up, down, or sideways.  This includes mutual funds, Exchange Traded Funds (ETFs), Exchanged Traded Notes (ETNs), closed-end funds, hedge funds, and private wealth funds.  Regardless of the implementation, most current alternatives typically suffer from tracking error because of  “path dependence.”

Φ-Funds™ solves this problem.  Φ-Funds™offer the benefits of leveraged returns on index products (e.g., S&P 500, gold price, treasury bill rates) that are path “independent.”  A Φ-Fundinvestment can be held over unlimited lengths of time without incurring a tracking error penalty.

Φ-Funds are a patented technology that fund sponsors can offer to their clients that provide predictable results — regardless of the path of the market.  And because they are patented, fund sponsors can attain product exclusivity in their particular market.

A detailed description of Φ-Fundtechnology is provided here.