I understand that restrictions on leveraged funds are being considered. I have been investing in leveraged and inverse leveraged funds for many years and find them a useful way to hedge and occasionally enhance returns. I always read the prospectuses and think that since they are not marginable or nearly not marginable then they present minimal risk. They are a useful tool and less onerous than investing in a basket of options, I am knowledgeable and would resent any kind of restriction on these types of investments.
David Brown Comment On Regulatory Notice 22-08
I understand that restrictions on leveraged funds are being considered. I have been investing in leveraged and inverse leveraged funds for many years and find them a useful way to hedge and occasionally enhance returns. I always read the prospectuses and think that since they are not marginable or nearly not marginable then they present minimal risk. They are a useful tool and less onerous than investing in a basket of options, I am knowledgeable and would resent any kind of restriction on these types of investments.