NEW YORK, April 1, 2016 /PRNewswire/ - Foresters Financial has launched a new equity mutual fund—the First Investors Covered Call Strategy Fund—which offers investors the potential to generate long-term capital appreciation while potentially reducing portfolio volatility.
"This Fund will appeal to equity investors who want equity-like returns," said Wiley D. Angell, Chief Investment Officer, FAMCO Group, and Senior Portfolio Manager at Ziegler Capital Management, LLC, the subadviser for the Fund, "but who also seek less volatility than the stock market."
In recent years, Covered Call investing has attracted a great deal of attention from investors searching for lower-volatility equity strategies with an attractive dividend- income component. This type of fund combines a traditional, well-known asset class (stocks), with an alternative asset class (call options). By selling call options, an equity fund can generate income and provide some downside protection, while retaining the long-term capital appreciation potential of the equity asset class.
"These risk-reducing characteristics can potentially produce superior risk-adjusted returns over time relative to an equity-only approach," said Angell. "As a result, a covered call strategy can help mitigate downside risk and offer less volatility than a stock-only portfolio, which may appeal to investors who are concerned about market volatility."
"The First Investors Covered Call Strategy Fund provides our clients with an exciting new equity investment choice and further enhances our overall product lineup," said Brian Watts, Director of Research and Strategy for Foresters Investment Management Company, Inc. "The new Fund can be used by clients as either a stand-alone investment, or as a core holding within their investment portfolio."
Please note that the Fund's strategy is expected to underperform equity markets during periods of sharply rising equity prices. The risks associated with an investment in the Fund include American Depository Receipts Risk, Call Options Risk, Dividend Risk, Exchange-Traded Funds Risk, Market Risk, Mid-Size and Small-Size Company Risk, Security Selection Risk, High Portfolio Turnover Risk, and Tax Risk.
For more information about the First Investors Covered Call Strategy Fund or any other mutual fund from Foresters Financial, you may obtain a free prospectus and summary prospectus by contacting your Representative, calling 800 423 4026 or visiting our website at forestersfinancial.com. You should consider the investment objectives, risks, charges and expenses carefully before investing. The prospectus and summary prospectus contain this and other information and should be read carefully before you invest or send money. An investment in a mutual fund is not a bank deposit and is not insured or guaranteed by the Federal Deposit Insurance Corporation (FDIC) or any other government agency.
About Foresters Financial (formerly First Investors)
The Foresters Financial (formerly First Investors) group of companies is a diversified financial services company and includes a registered broker-dealer, an investment adviser, a life insurance company and a transfer agent. Foresters Financial Services, Inc., a broker-dealer, helps everyday families reach their financial goals by offering solutions and guidance through its network of financial representatives working in 42 branch offices across the United States. Foresters Investment Management Company, Inc. is the investment adviser to the First Investors family of funds, which had nearly $11 billion in total assets under management as of December 31, 2015. Foresters Life Insurance and Annuity Company, Inc., a New York domiciled insurance company, offers a range of insurance and annuity products and maintains an "A" (Excellent) rating by A.M. Best1. forestersfinancial.com
Foresters is an international financial services provider with more than three million clients and members in Canada, the United States and the United Kingdom. We provide life insurance, savings, retirement and investment solutions that help families achieve their financial goals and make a lasting difference in their lives and communities. Foresters has assets of almost $14 billion, total funds under management of $34 billion and a surplus of $2.3 billion (all figures in Canadian dollars as of December 31, 2015) and maintains an "A" (Excellent) rating by A.M. Best¹. For more information, visit foresters.com.
Foresters Financial™ and Foresters™ are the trade names and trademarks of The Independent Order of Foresters, a fraternal benefit society, and its subsidiaries, including Foresters Financial Services, Inc. Securities, life insurance and annuity products are offered through Foresters Financial Services, Inc. Insurance products are issued by Foresters Life Insurance and Annuity Company or The Independent Order of Foresters.
¹ An "A" (Excellent) rating is assigned to companies that have a strong ability to meet their ongoing obligations to policyholders and have, on balance, excellent balance sheet strength, operating performance and business profile when compared to the standards established by A.M. Best Company. A.M. Best assigns ratings from A++ to F, A++ and A+ being superior ratings and A and A- being excellent ratings. In assigning Foresters rating on July 1, 2015, A.M. Best stated that the rating outlook is "stable", which means it is unlikely to change in the near future. See ambest.com for our latest rating.
SOURCE Foresters Financial