Zurich-based asset manager Vontobel has launched an actively-managed European equity income fund.
It will invests in a high conviction, high-quality, high-dividend European equity portfolio with an aim to achieve income combined with capital growth, compared to the MSCI European Economic and Monetary Union (EMU) Net Total Return Euro Index.
The fund will apply option strategies, primarily through the sale of call options on single stocks, to generate a diversified source of income in addition to dividends. The option overlay used can provide some protection during falling markets.
It will be managed by portfolio manager Robert Borenich, and deputy portfolio manager Christoph Loy, of the Vontobel Quantitative Investments team.
“The goal of this new fund is to both distribute income to shareholders as well as outperform the benchmark by combining three uncorrelated streams: quality dividends, call options, and dynamic participation through active management,” says Borenich.
The fund is registered for distribution in Switzerland, Austria, Germany, Spain, France, the UK, Italy, Liechtenstein, Luxembourg, and Sweden.
