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Euro Pacific International Bond Fund Launches

November 17, 2010

Euro Pacific Asset Management Launches First Bond Fund

 Euro Pacific International Bond Fund to trade under the symbol EPIBX
(Newport Beach, CA) - November 17, 2010 - 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 International Bond Fund. The Fund seeks to preserve purchasing power and generate income through investments in a diversified basket of non-dollar government and corporate debt securities. The fund is run by Peter Schiff, investment committee chairperson, and Jim Nelson, CFA, portfolio manager1, the same team that overseas Euro Pacific Asset Management's other fund offering, the EuroPac International Value Fund which was launched in May 2010. 
With the United States dollar facing continued long term uncertainty, the fund will allow Americans looking for currency diversification to invest in bonds denominated in currencies from a number of countries with positive macro-economic fundamentals. Selection criteria include favorable GDP growth estimates, an expected 1-2 year trade surplus, high real interest rates, low debt-GDP, low unemployment rates and favorable demographics. The team seeks to diversify the fund's currency risk by maintaining a balanced exposure to a number of both developed and emerging market countries and currencies.
"This fund differentiates itself from other international bond funds already on the market in that it takes into account my macro-economic preference for countries with low debt, high productivity, and responsible central banks," said Peter Schiff. "As a result, the Fund will typically be underweight the United Kingdom, Western Europe and Japan, and overweight emerging markets and the resource economies."  
The fund will invest primarily in investment grade government bonds, with the remainder dedicated to what the managers believe to be undervalued corporate bonds from companies in attractive sectors with improving fundamentals. In many cases, these are bonds issued by the same companies held in the International Value Fund.
Because the management team believes many countries are likely to see rising interest rates in the future, the initial preference of the fund will be to hold bonds of shorter duration. "Although these bonds offer lower yields than longer term paper, they would likely show less volatility in a rising interest rate environment," said Jim Nelson. "However we believe the yield will be attractive compared to other bond portfolios concentrating on similar duration." 
The fund, which trades under the symbol EPIBX, can 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. Finally, other broker-dealers may also sell shares of the fund through their own programs. Investors with existing accounts at other broker dealers should contact their brokers to see if the fund is available to them.
As with all foreign securities, prices have the potential for significant volatility because of economic conditions abroad, political developments, and changes in the regulatory environment of the countries in which the fund invests. Additionally, this fund is a new mutual fund and has a limited operating history. Please see the fund's prospectus for additional information about the risks of investing. 
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.
The EuroPac International Bond and EuroPac International Value funds are distributed by Grand Distribution Services, LLC.
1The investment committee has been formed at Euro Pacific Capital, Inc for the purpose of oversight of the Euro Pacific Capital managed accounts. Information gained during these meetings is intended to also be used in the management of the EuroPac International Bond Fund.
Changes in interest rates will affect the value of the Fund’s investments in fixed income securities and preferred stock. 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.
Securities offered through Euro Pacific Capital, Inc. Member FINRA/SIPC