According to an announcement, the offering period started September 2 and is open through October 31, 2003. The investment date is set for November 7.
Currently Black Diamond is offering the following funds:
- BD 500 Protected Growth Fund II (S&P 500 Index)
- BD 100 Protected Growth Fund II (NASDAQ 100 Index)
- BD 400 Protected Growth Fund II (S&P Mid-Cap 400 Index)
- BD 2000 Protected Growth Fund II (Russell 2000 Index)
- BD Total Index Protected Growth Fund II (Wilshire 5000 Total Market Index)
- BD LS Protected Growth Fund II (CSFB Tremont Hedge Fund Long/Short Equity Index) Offered only to qualifying high net worth investors.
The funds are subadvised by Broadmark Asset Management, LLC. According to the announcement, all of the funds seek to meet or exceed the performance of the benchmark index over the seven-year investment period through the active management of index options and options on ETFs. The Total Index Fund II allows the subadvisor to trade options on the four stated indices, allocated at its discretion. Depending on the price of the US Treasury Zero’s on the investment date, all of the funds will offer between 90% to 100% principal protection (including all sales loads) at maturity.
The manager provides for measured downside protection through the use of Zero Coupon US Treasury Bonds. All funds offer daily liquidity at NAV, no surrender charges and a profit protection feature.
At least 70% of the series’ assets will initially be invested in designated Treasury securities, which will lower the amount invested in the fund.