US Premium Income is an alternative way to generate income: systematic put-writing on a selection of single stocks

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Objective:

The THEAM Quant – Equity US Premium Income Fund seeks to provide income and capital growth by implementing a systematic option strategy on a selection of US equities which aims at generating income in bullish and moderately bearish markets. The Sub-Fund targets an income of 5% per year.

In order to achieve its investment objective, the Sub-Fund implements a quantitative investment strategy (the Strategy) which consists in selling short-term put options on a selection of US equities through the BNP Paribas Stock Put Write US Index (the Strategy Index).

Key points:

• Firstly, Every month, the Strategy selects equities on the basis of fundamental and market criteria.
• Moreover, the objective is to identify the large-cap, liquid US stocks benefiting from a sustainable business model, favourable price momentum, low correlation to US equities, attractive valuation of option premium, and favourable trading conditions on the option market.
• In addition, once the stocks have been identified, the strategy dynamically sells short-term out-of-the-money put options on each of the selected equities, in equal proportions.
• At last, THEAM has combined its recognised expertise in both stock-picking strategies (THEAM Quant Equity GURU® funds live since 2009) and option-writing (THEAM Quant Equity Covered funds live since 2006) to create this innovative solution. 

Performance data and latest documents

 

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