By Nathan Rudyk
"Honey, I shrunk the mutual funds, now what do we do?" It's an all-too-familiar refrain from income-seeking folks who have been driven away by negative real interest rates offered from many bond funds and are also scared of what they've seen in their equity mutual fund statements the last few years.
These cash-flow-starved investors should check out the BMG Gold Advantage Return BullionFund. This new fund's objective is to provide a secure, convenient, medium-risk alternative for investors seeking to indirectly hold gold bullion while receiving monthly cash flow from capital gains in a tax-efficient manner. The new fund invests only in Class I units of BMG Gold BullionFund, offering $0.07 per unit monthly fixed cash distributions with an underlying asset of uncompromised physical gold bullion.
"If gold repeats this performance," says Nick Barisheff, president and CEO of BMG, "investors will receive cash distributions in excess of 8% from their capital gains, while at the same time experiencing a growth in their capital."
BMG cites figures from the World Gold Council that that show that gold has delivered consistently high returns, with annualized returns of 13.45% over the past ten years and 16.21% over the past five years.
For investment portfolios overwhelmingly invested in equities and bonds, BMG Gold Advantage Return BullionFund also provides an extra layer of diversification in an asset class that is negatively correlated to traditional asset classes.