BNP AM

The bank for a changing world

The fund has a dynamic strategy that seeks to generate income through systematic put-writing on a selection of single-stocks.

Investment Theme

Liquid Alternatives

Asset class

Equity

Style

Income

Fund Objective:

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.

Key points:

  • 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.

Performance data and latest documents:

Investments in the aforementioned strategies are subject to market fluctuation and risks inherent in investing in securities. The value of investments and the revenue they generate can increase or decrease and it is possible that investors will not recover their initial investment. Source: BNP Paribas Asset Management Holding, registered with the Paris Registry of Commerce and Companies under number 682 001 904 as a Limited Company with share capital of 23 041 936 euros. Registered office: 1 Boulevard Haussmann, 75009 Paris. Postal address: TSA 47000/75318 PARIS CEDEX 09