Thursday, March 1, 2012

Peter Schiff Launches a US Equity Fund (EPUSX)

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Euro Pacific Asset Management, affiliated with Peter Schiff's Euro Pacific Capital,has announced the launch of the EP Strategic US Equity Fund (EPUSX).

The EP Strategic US Equity Fund aims to provide capital appreciation and income over a long-term investment horizon by primarily investing in US-domiciled companies that the fund managers believe may benefit from increasing international sales in overseas markets in order to protect investors against the depreciation of the US dollar. 

Here's the rest of the press release:
The Fund is overseen by Peter Schiff, investment committee chairperson, and managed by Jim Nelson, CFA; the same team that oversees Euro Pacific Asset Management's other fund offerings. Patrick Rien, CFA, will serve as co-manager of the Fund. The Fund is designed for US-based investors who would like get exposure to US equity markets by owning a basket of American companies that derive a majority of their earnings from overseas. It is expected that such companies will benefit from an environment of US dollar weakness.  

"Many American investors believe strongly that global economic conditions will continue to push up key foreign markets at a faster growth trajectory than what will likely be seen in the United States" said Peter Schiff. "At the same time, many of these investors want, or in some cases need, to maintain exposure to the US equity market. We hope to bridge this gap by offering a fund that holds US companies that derive a majority of their earnings abroad."  

The Fund's portfolio management team will use a top-down approach to target attractive markets abroad, and a bottom-up approach to select US companies with the best fundamentals that have exposure to those markets. The team will favor markets that have shown a willingness to allow their currencies to strengthen against the US dollar, and that have high expected GDP growth, positive real interest rates, a sustainable current account surplus, and low levels of private and public debt. Additionally, the team will focus on companies that may benefit from country-specific trends such as growth in consumer spending, increasing foreign investment, or plentiful access to natural resources.  

"In an environment where the Dollar is weakening, it is of critical importance for investors to understand that some US companies are likely to perform better than others," said Jim Nelson. "With the EP Strategic US Equity Fund, an investor can own US businesses with overseas exposure to what we believe are the most attractive markets, while minimizing ownership of those firms focused solely on the spending habits of US consumers."

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