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Equity US Income Defensive is a high-dividend stock-picking with option overlay aiming to reduce volatility

Investment Theme

Defensive Strategies/ Income

Asset class

Equities

Style

Defensive / Income

Objective:

The THEAM Quant – Equity US Income Defensive Fund objective is to provide income and capital growth by being exposed to a basket of high-dividend U.S. equities and by implementing a systematic options strategy which aims at generating additional income and reducing risk by minimising volatility in the fund.

Key points:

  • Firstly, the Fund seeks long term capital appreciation by investing in highly liquid US non-financial companies with a track record of recurring and sustainable dividends.
  • Moreover, a short term call option overlay strategy on the S&P 500 Index aims to enhance the income of the fund by selling some potential future growth of the US equity market and reinvesting the cash received.
  • In addition, a long term put option strategy is implemented in the Fund with the aim of reducing volatility compared to an investment in the equity strategy.

Performance data and latest documents