The fund constitutes a quality-dividend ESG stock-picking strategy with an option overlay aiming to reduce volatility.
The THEAM Quant – Equity iESG Eurozone Income Defensive fund aims to increase the value of its assets over the medium term by being exposed to a portfolio of quality-dividend equities from the European Economic and Monetary Union of the European Union (the Eurozone), which are compliant with higher ESG standards, and by implementing a systematic options strategy (the “protection overlay”) which aims at reducing risk by minimizing volatility in the fund.
- The fund consists of a portfolio of systematically selected Eurozone stocks with high and stable dividends, and strong financial fundamentals that have better ESG score and a lower carbon footprint than the reference universe.
- It also constitutes of an agile option-based risk-reduction overlay:
- A short-term call option overlay strategy with the objective to generate additional income while limiting the fund’s volatility;
- A long-term put option strategy aiming to reduce the fund’s volatility.