IRON Funds has launched the IRON Equity Premium Income Fund which aims to provide superior risk-adjusted total return relative to the CBOE S&P 500 BuyWrite Index by utilising an actively managed options overlay strategy on the underlying exchange traded index fund.
The Fund has several unique features. It utilises an exchange traded index fund to maintain the core equity exposure thus eliminating the need for holding individual stocks and associated single name risk. IRON's Equity Premium Income Fund will write call options that are out-of-the-money, and up to 60 calendar days to expiration. The number of written call options may correspond to a fully covered underlying position thus avoiding margin and additional options' leverage. The Fund limits option moneyness when the underlying trades above the option strike price thus allowing the underlying to appreciate better during rising markets. It does not utilise put options and hence maintains a true covered call structure.
"Our investment strategies are developed using quantamental approaches and follow a disciplined process – seeking to deliver consistent results and eliminate biases,” says IRON Managing Director of Investment and Quantitative Research Dr. Ramesh Poola, PhD, CFA.
Mark F Vassallo, Managing Partner of Lightyear, says: “With Clarion’s strong market position, the company has attracted the interest of one of the world’s largest global asset management firms. We are confident there is a bright future ahead for Clarion Partners.”
Donald B Marron, Chairman and Founder of Lightyear, says: “We have worked closely with Clarion management over the course of the past five years and are very pleased with the outcome of our fund’s investment in Clarion Partners.”
“We are thankful for Lightyear’s expertise and support and are excited about the significant opportunities ahead of us as a part of Legg Mason,” says Steve Furnary, Chairman & Chief Executive Officer of Clarion Partners.