A Unique Investment Strategy for the Coming Market Correction – The BMG Diversified Hedge Fund
Markham, ON – (October 29, 2019) – BMG Management Services Inc. (“BMS” or the “Manager”) is pleased to announce the launch of the BMG Diversified Hedge Fund (the “Fund”). The strategy of the Fund is premised upon the Manager’s expectation that there will be a significant market correction in the near future, and the fact that the price of gold typically increases dramatically during a market correction. The Fund has a two-stage investment strategy. Stage One: the Interim Bullion Strategy invests solely in gold until the global market corrects. Stage Two: the Long-Term Balanced Strategy then reallocates the portfolio among top-quality equity funds, fixed income funds and REITs, as well as gold and silver. Investors will benefit from the anticipated capital appreciation of gold in Stage One, and will also benefit from investing in a high-quality, diversified portfolio at what the Manager expects to be significant discounts driven by the correction as the Fund transitions to Stage Two.
“This new strategy is very simple: no leverage, derivatives or exotic algorithms,” said Nick Barisheff, President and CEO, BMG Group Inc., the parent company of the Manager.
The Manager has back-tested this strategy using market data from the 2008 crash. If this strategy had been followed in 2008, investors would have generated returns in excess of 25% annually. Past performance is no assurance of future performance, there is no assurance that the Fund will achieve returns of this magnitude, and there is no assurance that the circumstances of 2008 will be repeated. However, many of the world’s leading financial experts believe that a major correction is coming, and that it will be worse than the 2008 crash.
“Including real estate and precious metals in the balanced portfolio in Stage Two gives the Fund exposure to two assets classes that perform very well over the longer term, yet are generally excluded from typical balanced fund portfolios,” added Mr. Barisheff.
The Fund’s investment exposure to gold will be achieved exclusively by holding Class I units of the BMG Gold BullionFund, one of the BMG Funds managed by the Manager. The Manager will charge a management fee of 0.5% per annum to the Fund during Stage One, but will not charge a management fee in respect of the Fund’s investment in the BMG Funds. Transitioning to Stage Two, the management fee charged to the Fund will increase to 1.5% per annum. The BMG Funds are public mutual funds. The public documents of the BMG Funds are available for review at www.sedar.com.
Investment in the BMG Diversified Hedge Fund is only available to accredited investors. The minimum subscription is $25,000.
For more information about the Fund,
please contact BMG Marketing Services Inc., an affiliate of the Manager and the
principal distributor on the offering.
About BMG Management Services Inc. (BMS)
BMG Management Services Inc. is a wholly owned subsidiary of BMG Group Inc. (“BMG”). Founded in 2002, BMG’s mission is to be the global leader in providing investors with a cost-effective and convenient way to purchase and store physical gold, silver and platinum bullion for real wealth preservation and true portfolio diversification. BMG’s head office is located in Markham, Ontario. BMS offers the BMG Funds to domestic and international investors. BMG’s wide range of bullion products (such as BMG BullionBars), including the BMG Funds’ assets, are stored on an allocated and insured basis within London Bullion Market Association (LBMA) member vaults. BMG was the first precious metals bullion management company in Canada to become an Associate Member of the LBMA, an honour it shares with the Royal Canadian Mint, the Crown Corporation that produces Canada’s currency. This validation and endorsement is only bestowed upon firms that meet the LBMA’s rigorous industry standards on refining, reliable trading and Good Delivery practices. BMG is also an Associate Member of the Responsible Investment Association (RIA) and a Signatory to the Principles of Responsible Investment (PRI). BMG Funds are also Sharia compliant. For more information about BMG Funds, visit: https://bmgfunds.com/.
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