Launch of a Covered Options UCITS Fund
Launch of a Covered Options UCITS Fund
The Written Fund (A Covered Option Writing Fund)
Gate Capital Group Ltd is pleased to announce the expansion of its service offering together with investment opportunities via the launch of The Written Fund. The Fund’s focus is to invest in equities utilising an active covered option writing strategy, in order to generate additional cashflow as well as managing entry and exit points. The Fund’s objective is to achieve medium to long term capital appreciation.
Option Writing allows an Investor the opportunity to generate superior risk adjusted returns on underlying equity positions.
The Written Fund gives its investors the opportunity to benefit from a Covered Options Writing approach: accessing enhanced risk/reward opportunities in a regulated and diversified fund structure.
The Written Fund’s Portfolio Manager is Bruce Williams; a leading practitioner of Options investments, with over 30 years of experience in the use of Options as an integral part of portfolio management. According to Mr Williams: “Using Covered Options Writing as part of a diversified portfolio helps to increase the probability of more predictable returns, smoothing-out market volatility”.
The Written Fund will be actively managed; investing most of its assets in a portfolio of equities and equity-related securities, which are listed on recognized exchanges in the UK, Europe and USA. The portfolio will be pursuing an active Options Writing strategy.
The Written Fund utilises a UCITS structure, with 2 Classes in 3 Currencies (GBP/EUR/USD). It is ISA eligible.
The Written Fund’s management company is Equity Trustees Fund Services (Ireland) Ltd. Administration and custody is provided by Société Générale (Dublin).
The Investment Manager of The Written Fund is Gate Capital Group Ltd, an investment management boutique, based in London, serving discerning clients.
Mr Williams comments that writing Options in a structured way allows investors to lower the cost-base of owning equities, as the cashflow received effectively lowers the acquisition price. Some studies suggest that the use of Options can enhance the overall risk adjusted return of an equity investment. This aspect may explain why the percentage of individual American investors using Options, in some form in their investment portfolios, has risen to 26% (from 18% in 2018); as they seek to access investment opportunities as well as managing risks/returns more productively. In the UK, the use of Options by individual investors is not as pronounced.
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