Objective
The investment objective of the Fund is to provide investment results that closely correspond, before fees and expenses, generally to the price and yield performance of the EURO STOXX 50 Covered Call ATM Index (the “Index”). The Index each month measures the performance of a portfolio of the equity securities included in the Reference Index (defined below) while it also sells a succession of one-month at-the-money covered call options on the securities in the Reference Index, which are held until the expiration dates (i.e., generally the third Friday of the month) (the “Roll Date”). The Fund is passively managed. The intention of the Fund is to gain exposure to, and replicate the performance of, the Index via a Swap (as defined below). The Fund intends to invest primarily in a basket of global equity securities and equity related securities that comply with Schedule II of the Prospectus (the “Basket”) where the Fund will enter into an unfunded swap agreement with approved counterparties to exchange the performance/return of the Basket for the return of the Index minus any associated fees (the “Swap”). The Investment Manager may decide from time to time to switch partially or totally between using the Swap to replicate the performance of the Index or investing directly in global equities and equity related securities (which may include common stock and preferred stock) that, as far as possible and practicable, consists of the component equity securities of the EuroStoxx 50 Index (the “Reference Index”) and by selling corresponding call options on the Reference Index and covering such options by holding the securities underlying the options written. The Fund follows a “buy-write” (also called a covered call) investment strategy in which the Fund buys an equity security or a basket of equity securities, and also sells the corresponding call options. The strategy will generate income in the form of options premiums while potentially limiting the increase in equity value of the basket of securities, if options are exercised. The Fund may also invest in depositary receipts relating either to components securities of the Index or to equity securities of the type referred to above; and financial derivative instruments (“FDIs”), namely option, futures, which may be used for investment purposes (such as gaining exposure to the Index and/or any particular constituents of the Index). The Fund may enter into securities lending transactions, investing in repurchase and reverse repurchase transactions and collective investment schemes, for the purposes of efficient portfolio management only. The Fund’s base currency is EUR.
- Leverage -
- Currency hedgingNo