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Elevate Your Fixed Income Strategy with BAMIX

BAMIX is an alternative investment, but because it holds structured notes—hybrid investments combining bond and equity characteristics—you have flexibility in how you position it.

The modern allocation framework. Consider evolving the traditional 60/40 to a 50/30/20 model—50% equities, 30% traditional fixed income, and 20% alternatives including BAMIX. Because BAMIX holds structured notes, which are hybrid investments combining bond characteristics with equity-linked features, the allocation draws from each side: it targets consistent monthly income like bonds with enhanced income potential, while the equity linkage can offer return potential comparable to equities.

Implementation flexibility. Depending on client objectives, you might position BAMIX as a bond replacement, a complement to existing fixed income allocations, a volatility stabilizer for equity-heavy portfolios, or a standalone alternatives allocation. The key is recognizing its dual nature and positioning it to best serve the client's income and risk objectives.

Start with outcomes rather than mechanics, focusing on what structured notes do rather than how they're engineered.

What they are. Enhanced income notes are debt instruments issued by major banks—like JPMorgan, Citibank, and Barclays—that combine bond-like income with equity-linked characteristics. Think of them as customized contracts where the terms—coupon rate, barrier level, and maturity—are locked in at issuance.

How income works. Each note pays a fixed coupon—typically higher than traditional bonds—that doesn't change with interest rates or market conditions.

The equity link. The higher coupon is enabled by linking the note to equity market performance. This link doesn't affect the monthly income but rather determines what happens to principal at maturity.

The built-in risk management feature. Each note includes a barrier that defines downside parameters. A barrier sets a threshold (typically 20-30% below the starting point); as long as the linked index doesn't fall below that level, principal is returned in full at maturity.

Return of principal. At maturity, the note is designed to return full principal, subject to the risk mitigation terms built into each note. If those terms are breached and haven't recovered by maturity, principal may be reduced.

How BAMIX simplifies this. BAMIX holds dozens of custom-negotiated notes. Clients gain access to a professionally managed fund of notes with exposure across issuers, structures, and maturities through a single position.

Risk Considerations: Structured notes are subject to the risks associated with the underlying assets and are often leveraged, which will generally magnify the opportunities for gain and risk of loss. They are highly complex, which may cause disputes as to their terms and impact the valuation and liquidity of such positions, and they often contain significant obstacles to asserting “putback” or similar claims against the notes.

Active management in BAMIX goes beyond traditional portfolio oversight—it's embedded in every aspect of how the fund operates.

Sourcing and negotiation. The team works directly with established relationships at major global banks to custom-negotiate notes—optimizing coupon rates, barrier levels, and maturity structures with terms not available through retail channels.

Portfolio construction and laddering. The fund maintains exposure across issuers, barrier types, maturity dates, and underlying indices. This laddered approach smooths income and manages reinvestment risk as notes mature or are called.

Ongoing due diligence. Continuous monitoring of issuer credit quality, market conditions, and portfolio positioning. When notes approach call or maturity dates or barriers come under pressure, the team actively manages exposures.

Established infrastructure. This capability is built on a $2 billion track record of managing individual structured notes. The same methodology, relationships, and expertise now power BAMIX—giving your clients access to professional management through a single allocation.

BAMIX is designed for income-focused investors with conservative to moderate risk profiles who can accept quarterly liquidity.

Well-suited profiles. Pre-retirees and retirees seeking monthly income with higher income potential than traditional bonds. Investors looking for alternatives to low-yield bonds without taking on full equity risk. Those who want reduced sensitivity to interest rate movements and prefer defined risk parameters over open-ended market exposure.

Less suitable profiles. Clients requiring daily liquidity or emergency fund access. Aggressive growth investors focused on capital appreciation. Those uncomfortable with any principal risk. Investors with very short time horizons.

Portfolio fit. BAMIX works best as part of a broader allocation—not as a client's only income source. The quarterly liquidity structure means clients should have other liquid assets available for unexpected needs.

The fund should be viewed as a long-term investment. Investing in the fund’s shares may be speculative and involves a high degree of risk, including the risks associated with leverage.

BAMIX is structured as an interval fund, a fund type that offers scheduled redemptions rather than daily liquidity. This structure is what enables the fund's investment strategy and delivers several advantages.

Transparent pricing. Shares are purchased and redeemed at net asset value (NAV), so clients always transact at the fund's true underlying value—no premiums or discounts like exchange-traded products.

Immediate capital deployment. Daily purchases at NAV mean client capital goes to work immediately, eliminating the cash drag.

Efficient portfolio management. Structured notes have defined maturity dates, typically 12-18 months. The interval structure gives managers time to hold notes to maturity and capture their full income and return potential—benefits that daily redemption requirements would prevent.

Periodic access. Quarterly redemption windows provide four scheduled opportunities to access capital per year.

How redemptions work. Requests are submitted before each quarterly window and processed at NAV. If requests exceed 5% of fund assets, fulfillment is prorated, and the remainder carries forward. It is possible that a repurchase offer may be oversubscribed, with the result that shareholders may only be able to have a portion, or none, of their shares repurchased. There is no assurance that a client will be able to tender their shares when or in the amount that they desire in any individual repurchase period.

Portfolio positioning. BAMIX works best as part of a broader allocation. Clients should maintain separate liquidity for emergency needs and short-term expenses.

Both FIAs and income-oriented structured notes emerged from the same capital markets innovation: linking conservative investments to market performance with defined risk mitigation features. Insurance companies pioneered this approach with FIAs in 1995; banks now apply a similar methodology to structured notes.

As a complement. FIAs provide longevity benefits and guaranteed lifetime income for later retirement years. BAMIX offers enhanced income potential with quarterly liquidity for near-term needs. Many advisors split income allocations between both strategies.

As an alternative. For clients who want income potential without surrender charges, insurance fees, or long-term lockups, BAMIX offers quarterly redemption opportunities, exposure to multiple bank issuers rather than a single insurance company, and professional management within a transparent fund structure.