The Protected Equity Fund is suitable for investors whose primary focus is achieving a steady return above inflation whilst also participating in upside with the equity market. Fund returns will be made up of a combination of capital growth, dividends and option premium income. The fund allows for a maximum net exposure of 75% and portfolio construction focus is to reduce both the risk and volatility relative to that of a general equity portfolio. The Protected Equity Fund can and does invest offshore in both global equities and index trackers.
In summary:
  • Participation in the equity market's upside, protected against the downside
  • Incorporate options to create income, hedge risk and lower volatility (steady returns)
  • Max net exposure of 75%
  • Larger market cap preference (liquidity)
  • Offshore exposure (developed market preference)