BXM Testimonial 2


Testimonials on BXM

From Boston Portfolio Manager

"Rampart has engaged in various options related programs for nearly 20 years. We've always considered option writing a separate asset class requiring a suitable performance benchmark. If one examines the return series from the 1988 inception of the BXM Index through 2001, one will note that the BXM Index produced a nearly identical compound annual rate of return as the S&P 500, but at 65% of the risk.* That's significant."

-- Ronald Egalka, President/CEO, Rampart Investment Management Co., Boston

* A portfolio manager who states that one asset has 65% of the risk of another asset can be referring to the fact that the one asset has a standard deviation of returns that is less than that of the other asset. Note that in the table entitled "Returns and Standard Deviation for June 1988 Through Dec. 2001" the "standard deviation of monthly returns" (a concept some investors generally equate with "risk") was 2.67% for BXM and 4.10% for the S&P 500, and the annualized returns were 13.88% for BXM and 14.07% for the S&P 500. Past performance does not guarantee future results. Please refer to the "Charts on BXM" and "BXM FAQ" portions of the BXM website, and the risk disclosure below, for more information on returns and risks of a BXM strategy.

The CBOE S&P 500 BuyWrite Index (BXMSM) is designed to represent a proposed hypothetical buy-write strategy. Like many passive indexes, the BXM Index does not take into account significant factors such as transaction costs and taxes and, because of factors such as these, many or most investors should be expected to underperform passive indexes. Investors attempting to replicate the BXM Index should discuss with their brokers possible timing and liquidity issues. Transaction costs and taxes for a buy-write strategy such as the BXM could be significantly higher than transaction costs for a passive strategy of buying-and-holding stocks. Past performance does not guarantee future results. Standard & Poor's®, S&P®, and S&P 500® are registered trademarks of The McGraw-Hill Companies, Inc. and are licensed for use by the Chicago Board Options Exchange, Incorporated (CBOE). CBOE, not S&P, calculates and disseminates the BXM Index. The CBOE has a business relationship with Standard & Poor's on the BXM. LEAPS®, FLEX®, OEX®, XEO®, MNX®, CBOE® and Chicago Board Options Exchange® are registered trademarks of the CBOE, and SPXSM, and CBOE S&P 500 BuyWrite IndexSM BXMSM are servicemarks of the CBOE. The methodology of the CBOE S&P 500 BuyWrite Index is owned by CBOE and may be covered by one or more patents or pending patent applications.

  VIX Snapshot

*Third Party Advertisement