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Euro Pacific Asset Management Launches EuroPac Hard Asset Fund

July 8, 2011

Euro Pacific Asset Management Launches EuroPac Hard Asset Fund

Fund is designed with the intent to mitigate exposure to inflation and dollar devaluation.

(Newport Beach, CA) – July 8, 2011 - Euro Pacific Asset Management, LLC, a Newport Beach, Ca-based asset manager affiliated with Peter Schiff's brokerage firm, Euro Pacific Capital, is pleased to announce the launch of the EuroPac Hard Asset Fund. The fund, which will trade under the symbol EPHAX, is the fifth fund offered by Euro Pacific Asset Management.  Other funds focus on such sectors as foreign bonds (EPIBX), small cap Asian equities (EPASX), international value stocks (EPIVX), and Chinese equities (EPHCX).  

The new mutual fund attempts to provide capital appreciation and hedge against inflation over a long-term investment horizon by selectively investing in hard asset securities as well as those currencies that the team believes have the greatest potential for appreciation against the US Dollar.  As a secondary objective, the Fund seeks income from dividends and interest. 

The Fund is managed by Peter Schiff, investment committee chairperson, and Jim Nelson, CFA, portfolio manager, the same team that oversees two of Euro Pacific Asset Management's other fund offerings, the EuroPac International Value Fund (EPIVX) and EuroPac International Bond Fund (EPIBX).  The strategy is geared for US-based investors who are concerned about the rising tide of global inflation and the long term uncertainty of the U.S. dollar. To hedge against these forces, the Fund will seek to invest in a basket hard asset commodities, such as gold and silver, non-dollar equities in the commodity sector, and foreign currencies.   

“The last few years have seen an unprecedented pace of monetary expansion from the United States and other countries looking to keep pace in a game of competitive currency debasement,” said Peter Schiff. “As a result, it is inevitable that some investors seek to stock up on tangible assets that tend to hold value in periods of high inflation.”

The EuroPac Hard Asset Fund uses a top-down approach to deploy funds to those asset classes that the managers believe have the best potential to hedge against inflation and the likelihood for appreciation in a declining dollar environment. Asset classes include gold and silver, precious metal mining companies, and companies involved in energy, agriculture and the production of industrial metals. The fund may also hold cash denominated in foreign currencies. 

“A casual observer may assume that our new Fund will behave like a precious metal fund, which many investors already seek for inflation protection,” said Jim Nelson. “But we have designed it with many characteristics that may distinguish its performance from that category of funds. In particular, the Fund’s asset allocation will seek to maximize the portfolio’s correlation and sensitivity to the inflation rate, while also maximizing risk-adjusted return and generating as little volatility as possible.”

The Fund, can now be bought through a brokerage account at Euro Pacific Capital, www.europac.net. Investors can also receive a prospectus and an application on the fund's website, www.europacificfunds.com, or by calling 1-888-558-5851. Other broker-dealers may also sell shares of the fund through their own programs.

 
You should consider the funds' investment objectives, risks, charges and expenses carefully before investing. For a prospectus or summary prospectus, each of which contains this and other information about the funds, call 1-888-558-5851 or visit
www.europacificfunds.com. Please read the prospectus or summary prospectus carefully before investing or sending money.

Foreign investments present additional risk due to currency fluctuations, which means the value of securities can change significantly when foreign currencies strengthen or weaken relative to the U.S. dollar, economic and political factors, government regulations, differences in accounting standards and other factors, particularly in the European and Pacific Rim regions relative to a fund that is more geographically diversified.  Small, and mid cap stocks are subject to substantial risks such as market, business, size volatility, management experience, product diversification, financial resource, competitive strength, liquidity, and potential to fall out of favor that may cause their prices to fluctuate over time, sometimes rapidly and unpredictably. The prices of fixed income securities respond to economic developments, particularly interest rate changes, as well as to perceptions about the creditworthiness of individual issuers, including governments.  Generally, fixed income securities decrease in value if interest rates rise and increase in value if interest rates fall, with lower rated securities more volatile than higher rated securities. The Fund  may be susceptible to government regulation, impacting hard asset sectors (such as the precious metals, natural resources, and real estate sectors).  Precious metals and natural resources securities are at times volatile and there may be sharp fluctuations in prices, even during periods of rising prices.  To the extent the Fund uses futures, swaps, and other derivatives, it is exposed to additional volatility and potential losses resulting from leverage.  The use of derivatives involves risks different from, and possibly greater than, the risks associated with investing directly in the underlying assets. Derivatives can be highly volatile, illiquid, and difficult to value. The Fund may be subject to greater risks than a fund whose portfolio has exposure to a broader range of sectors.

The Euro Pac Funds are distributed by Grand Distribution Services, LLC.

Securities offered through Euro Pacific Capital, Inc. Member FINRA/SIPC

Contact: Luke Allen, (949) 863-9500 x269, [email protected]