Euro Pacific Asset Management launches EP Strategic US Equity Fund

By Toni Weeks

San Diego, March 7 - Euro Pacific Asset Management, LLC announced in a press release that it has launched the EP Strategic US Equity Fund.

The fund, which will trade on Nasdaq under the symbol "EPUSX," is designed for U.S.-based investors who seek exposure to U.S. equity markets by owning a basket of American companies that derive a majority of their earnings overseas and benefit from an environment of U.S. dollar weakness.

As previously reported, the fund's investment objective is to provide capital appreciation and income over a long-term investment horizon by primarily investing in U.S.-domiciled companies that may benefit from increasing international sales in overseas markets. It will aim to reach its goal by investing at least 80% of its net assets in U.S. equity securities.

"Many American investors believe strongly that global economic conditions will continue to push up key foreign markets at a faster growth trajectory than what will likely be seen in the United States," Peter Schiff, investment committee chairperson and owner of the brokerage firm Euro Pacific Capital said in the release. "At the same time, many of these investors want, or in some cases need, to maintain exposure to the U.S. equity market. We hope to bridge this gap by offering a fund that holds U.S. companies that derive a majority of their earnings abroad."

Schiff will oversee the fund. Portfolio manager Jim Nelson and co-manager Patrick Rien will use a top-down approach to target attractive markets abroad and a bottom-up approach to select U.S. companies with the best fundamentals that have exposure to those markets.

The team will favor markets that show a willingness to allow their currencies to strengthen against the dollar and have high expected GDP growth, positive real interest rates, a sustainable current account surplus and low levels of private and public debt. The team will also target companies that benefit from country-specific trends such as growth in consumer spending, increasing foreign investment or plentiful access to natural resources.

Shareholder fees include a maximum sales charge of 4.5% and a 2% redemption fee for shares redeemed within 30 days of purchase. Management fees will run 0.75%. Including other expenses and a fee waiver agreement, total annual fund operating expenses will be held to 1.25% for one year.

The asset management company is based in Newport Beach, Calif.

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