(PRWEB) September 24, 2013
Camelot Portfolios, manager of the Camelot Premium Return Fund (CPRFX), have just announced that their next quarterly distribution payout will increase by 8% to $0.14. The distribution, which will take place in the last week of September, will be the 10th consecutive payout since the inception of the fund in December 2010.
Investors have had consistent income payouts even at a time when rates have been at historic lows. If rates continue to rise, the fund may potentially have access to higher options premiums which are a natural byproduct of increased market volatility. This market versatility may be one of the attributes that makes the fund appealing for investors looking for a cash flow stream.
The Camelot Portfolios management team have used cash-secured puts and covered call strategies for more than a decade for high net-worth clients. These advanced investment techniques are not traditionally used by the average investor due to the costs associated with each option contract. However, by using a mutual fund structure, the costs of the options contracts are able to be diluted, making the strategy potentially more practical for investors with less than $1M of investable assets. The Camelot Premium Return Fund brings option strategies to retail investors with as little as $2,500 of investable assets.
The overall management philosophy is aimed at seeking investments that produce strong cash flow so that the overall portfolio will produce consistent and rising cash which we believe will result in solid long term total return with reduced volatility.
Camelot Portfolios hosts a monthly call to update investors about current market conditions and to discuss new opportunities for clients looking to generate income. The calls give advisors the opportunity to ask important questions and give investors direct access to the Fund decision makers. Those interested in participating in a monthly call can do so by visiting http://www.CamelotFunds.com and submitting an RSVP through their Monthly Intro Call tab.
Investments in mutual funds involve risks. Investment return and principal value will fluctuate with changing market conditions so that when redeemed, shares may be worth more or less than their original cost. The fund has non-diversification risk, as the Funds are more vulnerable to events affecting a single issuer. Investments in lesser-known, small and medium capitalization companies may be more vulnerable than larger, more established organizations. There are risks associated with the sale and purchase of call and put options. The fund intends to write options on a significant portion of its portfolio. The options will generally have terms of three to six months resulting in proceeds being reinvested several times during the year. This can result in a higher level of portfolio turnover rate. There is no assurance that dividends will be paid.
Investors should carefully consider the investment objectives, risks, charges and expenses of the Camelot Premium Return Fund. This and other important information about the Fund is contained in the prospectus, which can be obtained at http://www.camelotfunds.com or by calling 855-226-3863. The prospectus should be read carefully before investing. The Camelot Premium Return Fund is distributed by Northern Lights Distributors, LLC member FINRA.