Bringing you live news and features since 2006 

Harewood Solutions launches US Enhanced Income Fund


Harewood Solutions, a part of BNP Paribas, is increasing its range of income products with the launch of the US Enhanced Income Fund. 

The fund will be aiming to generate a gross yield of eight per cent per annum, paid quarterly, and at the same time provide the potential for capital growth via an underlying exposure to the S&P 500 Index.  
The fund will be quoted on the London Stock Exchange and offers investors’ daily liquidity and a tight bid offer spread around NAV.
High income is generated by equity dividends received on the S&P 500 Index and BNP Paribas’ daily buy-write strategy which sells short term call options on a daily basis. This strategy allows the fund to capture positive equity market performance whilst simultaneously affording the NAV with some protection in falling markets. 
The fund’s exposure to the S&P 500 Index TR Index and to the enhanced buy-write strategy is provided via a contract with BNP Paribas. Shares held by investors benefit from the collateral of AAA G7 government bonds to offset any credit risk in respect of the counterparty.  
Ryan Rogowski, head of Harewood Solutions, BNP Paribas, says: ‘The US Enhanced Income Fund not only offers a high and sustainable income stream but it can also form part of an investor’s defensive equity strategy, providing for a more seamless transition back into equity markets. BNP Paribas has a proven track record and all the right credentials to satisfy this market demand.
‘This is an excellent way of gaining exposure to US equities, an asset class in which it is notoriously difficult to find an actively managed fund that has consistently outperformed. Nonetheless, something rather more than a straight passive fund, with its vulnerability to market swings is called for. The US Enhanced Income Fund fits the bill.’

Latest News

Morningstar has published a review of the European ETF market for the first quarter 2024, which finds that it gathered..
ETF data consultant ETFGI reports that assets invested in the global ETF industry reached a new record of USD12.71 trillion..
Calastone has published an ETF white paper which examines several of the processes that take place across the lifecycle of..
Adapting product lines to fit into changing methodologies and meet shifting demand is essential to remaining relevant in the industry..

Related Articles

Kristen Mierzwa, FTSE Russell
Index Investments Group (IIG), a division within index provider FTSE Russell, has extended its range of indices through two new...
US ETF issuers of active ETFs are facing an increase in fees from the big custodian firms, such as Charles...
Taylor Krystkowiak, Themes ETFs
Themes ETFs opened its doors in December 2023, with an introductory suite of 11 ETFs – seven thematic and four...
Konrad Sippel, Solactive
At the end of March, financial index specialist, Solactive, published its 2024 annual report on future trends.  ...
Subscribe to the ETF Express newsletter

Subscribe for access to our weekly newsletter, newsletter archive, updates on the site and exclusive email content.

Marketing by