In order to produce interest income, achieve its tax strategy and protect principal, the fund will distribute assets to investment-grade corporate notes and bonds.
Flexible Plan and Advisors Preferred has been appointed to serve as sub-advisor and advisor to the fund, respectively. Jerry Wagner together with Dr Z George Yang, director of research at Flexible Plan, will act as the fund’s portfolio managers.
Contrary to the requirement of K-1 Tax reporting normally associated with commodity ETFs, the new mutual fund provides non-ETF investors exposure to gold bullion.
The conventional Form 1099, which is common to most mutual fund investors, will be distributed by the gold bullion strategy fund.
Flexible Plan president and fund portfolio manager Jerry Wagner said "The launch of The Gold Bullion Strategy Fund enables us to offer our four gold-focused separately managed account strategies to a wider array of investors through a mutual fund vehicle."
Set up in 1981, Flexible Plan Investments invests more than $1.5bn in assets for clients in its separately managed account business as of 31 March 2013.
