Frequenty Asked Questions
1. What is the historical performance of the Abundance Strategy?
As a new fund, we do not have a long track record of historical performance. However, we have conducted extensive backtesting of our strategy and have seen strong results in a variety of market conditions. We are proud to report that we started live trading on 3/1/2023 and not only did our very first trade cash flow, as expected, but the strategy has been performing exactly as expected. While past performance is not a guarantee of future results, we are confident in our strategy and our ability to deliver consistent cash flow for our investors while prioritizing capital preservation protect our investors’ capital.
We are providing periodic updates live trading results on our YouTube channel. Please watch, like and subscribe!
2. What are the fees associated with investing in the Abundance Strategy?
We charge an industry standard 2% annual management fee. We make up that management fee and make the investor the next 8%. Anything over the 8% will be split 80/20 in favor of the investor.
3. How do you manage risk within the Abundance Strategy?
There are a number of ways we manage risk. We trade an ETF with a 23 year track record of outperforming the S&P 500. The QQQ rebalances itself so it cannot become worthless unless the entire stock market became worthless. We do not use any margin when we sell stock options. This enables us to be sure none of our positions will be liquidated at a loss by our broker. The entire strategy is built around one simple rule; never realize a loss or make a trade that could force you to realize a loss. It’s important to note that no risk management method can completely eliminate the possibility of losses, and past performance is not indicative of future results.
4. Are there any additional services that you provide for investors?
We consider all of our investors to be our partners. If you invest, you become a limited partner in Abundance Asset Management. As such, we provide expert tax services through Sabur Private Wealth Management and investment advice through our Registered Investment Advisor partners, Dylan Clark & Matt Johns. We also provide free educational seminars about investing and finance related subjects. See MoneyTalk: The Ultimate Guide to Financial Literacy and Education
5. What is the minimum investment required?
The minimum investment required is $50,000 USD. Please note that this fund is only available to accredited investors which meet certain income and net worth requirements set by the United States Securities and Exchange Commission (SEC).
6. What kind of due diligence is conducted when selecting investments for the Abundance Strategy?
We invest in one asset, the QQQ. It’s an ETF that tracks the Nasdaq 100. This enables us to utilize an already excellent allocation strategy without the costs associated with analysts and major expenses of office spaces.
7. How often are investments in the Abundance Strategy reviewed and adjusted?
At Abundance Asset Management, we continuously review and adjust our investment strategy to capture and compound profits over time. We achieve this by selling secured stock options around the QQQ, our single asset, which allows us to generate income while reducing risk. Additionally, the QQQ itself is rebalanced every quarter based on market capitalization of the underlying companies, providing further opportunities to optimize our investment approach.
8. What kind of reporting do you provide to investors?
Investors in the Abundance Asset Management fund receive a monthly statement from NAV Consulting, our third-party fund administrator. In addition, we offer a secure online portal where investors can view their account information. We believe in transparency, and all of our trading activity is available for investors to monitor in real-time. You can rest assured that you will always be up-to-date on your investments with us.
9. Are there any additional resources available to investors to help them understand the strategy?
We will show you how the strategy works in a simulated account. If you like, you can shadow our trades and make similar ones. Understanding the strategy can be a very powerful way to help you invest with confidence.
10. What is the expected return of the Abundance Strategy?
It’s important to note that the Abundance Strategy is not designed to forecast returns. However, we can provide some potential scenarios based on historical market performance. For example, in a scenario where the QQQ remains stagnant for a 12-month period, our strategy has the potential to generate approximately an 18% return. Alternatively, if the QQQ experiences an overall decline of 13%, we are still able to generate an 8% preferred return. In the event of a 14.5% increase in the QQQ (the historical average return over a one-year period), our expected return would be around 28%. Please note that these are hypothetical scenarios and not a guarantee of actual returns.
11. Are there any restrictions on when investors can enter or exit a trade?
Investors do not need to manually enter or exit trades. Our team at Abundance Asset Management takes care of all trading on your behalf while providing complete transparency through our portal. To begin investing with us, investors need to provide their information and complete the necessary paperwork by the 15th of the month. Funds will be transferred and trading will commence on the first of the following month.
12. How does Abundance Asset Management ensure that all trades are executed properly?
Abundance Asset Management ensures proper trade execution by partnering with a reputable broker, Schwab. Additionally, our algorithmic trading strategies are monitored by experienced professionals, providing human oversight and ensuring the accuracy of all trades.
13. What measures are taken to prevent insider trading?
Insider trading is not part of our investment thesis. We are smart enough to know that we have no idea what the stock price will do from day to day… our strategy is designed around exactly that.
14. What kind of customer service is provided to investors?
We provide personalized customer service to all our investors. As an investor in the Abundance Strategy, you will have access to a priority booking link to schedule a call with our CEO, Chris Perkins, at any time you have questions or concerns. Our team is dedicated to ensuring you have a positive experience with us and are here to support you every step of the way.
15. Do you offer any educational resources to help investors understand the Abundance Strategy?
At Abundance Asset Management, we value our investors’ understanding of our strategy. We believe that by educating our partners, we can establish long-lasting partnerships. That’s why we offer personalized one-on-one sessions with our CEO, Chris Perkins, to help you fully understand the strategy before investing. We are also developing educational resources, such as this FAQ page, videos in our Facebook group, and courses, to help you learn more about our approach.
If you have a question that is not answered in our FAQ page, please feel free to reach out to us directly through our contact page. We are always happy to provide additional information and answer any questions you may have about The Abundance Asset Management fund and our investment strategy, The Abundance Strategy. Our team is dedicated to providing exceptional service and support to our investors, and we look forward to hearing from you.