The fund has a dynamic strategy that seeks to generate income through systematic put-writing on a selection of single-stocks.
The THEAM Quant – Equity US Premium Income fund seeks to provide income and capital growth by implementing a defensive and systematic option strategy on an enhanced selection of US stocks, which aims at generating income in bullish and moderately bearish markets.
- The fund strategy systematically writes options (on a monthly basis) on large-cap, liquid US stocks, selected with a Smart-Beta approach (i.e. stock selection on the basis of robust fundamentals and attractive market conditions), in order to outperform put-writing strategies.
- The goal is stable income generation from unexercised sold put options – income target of LIBOR USD 3M + 3% per year.
- Defensive profile: balance between the premium received and the risk taken – reduced volatility, max drawdowns and time to recovery compared to the benchmark; and reduced timing risk through smoothed entry and exit points.