XXXXX | US Equity Premium Fund
Important Notes
- The Fund seeks to achieve long term growth of capital and income generation primarily through a strategy of writing collateralized exchanged traded put options on U.S. equity indices and exchanged traded funds providing exposure to U.S. equity indices.
- The Fund’s investment strategy of writing put options may not achieve the desired results under all circumstances and market conditions and therefore expose to risks associated with put-writing strategy, which may result in significant losses in instances of market downfall
- The Fund may use financial derivative instruments (“FDIs”) for hedging, efficient portfolio management and/or investment purposes and therefore may be subject to higher counterparty/credit, liquidity, valuation, volatility, valuation and over-the-counter transaction risks. The Fund may have a net derivative exposure of more than 50% but up to 100% of its NAV and may result in a significant loss of the Fund due to higher leverage risk.
- The Fund’s investments are concentrated in the US and therefore the value of the Fund may be more volatile due to country concentration risk, currency risk and currency hedging risk. The Fund may invest in lower rated (i.e. below investment grade) fixed income securities. The risk of loss due to default by these issuers is significantly greater and therefore the Fund may be subject to Lower Rated Securities Risk. The Fund may also invest in government/ sovereign fixed income securities and therefore subject to sovereign debt risk. The Fund may also be exposed to Fixed Income Securities and Downgrade Risk and due to investment in fixed income securities.
- In respect of the distributing shares, the Fund aims to pay dividend on a monthly basis. However, the distribution rate is not guaranteed. The Fund may at its discretion pay dividends out of the capital of the Fund. Dividends paid out of capital amount to a return or withdrawal of part of an investor’s original investment or from any capital gains attributable to that original investment. Such dividends may result in an immediate decrease in the net asset value of the relevant shares.
- Investors should not solely rely on this document to make any investment decision. Please refer to the Prospectus and Key Fact Statement for details including the risk factors before making any investment decision.
Why Invest
An options-based put-writing strategy on U.S. equity markets that seeks to increase the value of your shares through a combination of growth and income
Aims to Mitigate the Downside and Participate on the Upside
The strategy has historically outperformed broad-based equity markets when those markets are down and flat, whilst still participating in, but lagging equities, in strong equity up markets
Seeks to Monetise Volatility and Capitalise on Rising Rates
Higher volatility and higher interest rates working together can both increase the overall return potential of the fund and may help reduce the overall volatility
May be Utilised as a Diversifying Liquid Alternative Strategy
The strategy can offer a daily-liquid complement to traditional equity hedge fund exposures
Fund Facts
Why Invest
Seeks to achieve income and capital appreciation over a mid-to-long term horizon through a strategy of writing collateralized put options on U.S. equity indices and ETFs providing exposure to U.S. equity indices, such as the S&P 500 and the S&P 500 ESG
Aims to Mitigate the Downside and Participate on the Upside
Strategy is intended to generate returns through the receipt of option premiums, which in turn is intended to reduce volatility
Seeks to reduce volatility and Capitalise on Rising Rates
Higher volatility and higher interest rates working together can both increase the overall return potential of the Fund and may help reduce the overall volatility
May be Utilised as a Diversifying Liquid Alternative Strategy
The strategy can offer a daily-liquid complement to traditional equity hedge fund exposures
