Income and Premium Strategy

Investment Objective

  • Construct a portfolio that produces consistent monthly income, has low correlation to equity and bond markets over time with tightly managed portfolio risk.

Investment Strategy

  • Utilize low cost ETFs and Exchange Traded Options in a dynamic portfolio construction process. The primary core portfolio is made up of cash or other relatively stable or hedged income producing assets and a written option portfolio. Other assets with attractive risk/reward characteristics may be owned or acquired through the assignment of written put options.
  • Generate premium income at a minimum level of 4 percent annually through the sale of cash collateralized put and covered call options.
  • Allocate to global financial markets.
  • Manage risk through asset class, sector, option overlay diversification and income generation strategies.