IRON Launches Equity Premium Income Fund (CALLX)
IRON Equity Premium Income Fund
October 30, 2015
Ted Connolly, Portfolio Manager
Aaron Izenstark, Co-Portfolio Manager
Joe Fanaro, Co-Portfolio Manager
Dr. Ramesh Poola, Director of Investment and Quantitative Research
The objective of the IRON Equity Premium Income Fund is to provide superior risk-adjusted total returns relative to the CBOE S&P 500® Buy-Write Index (BXMSM) by utilizing an actively managed options overlay strategy on the underlying exchange traded index fund.
IRON’s investment philosophy stems from the belief that one can enhance the returns of a broad index portfolio by opportunistically writing and actively managing options on the underlying securities. We believe most option overlay strategies do not fully utilize the driver of performance, the underlying securities, and therefore at times unnecessarily write options on the underlying, thus capping the upside performance.
We believe the strategy’s options decision making process and active management of written options enables the underlying equity portfolio to capture a higher percentage of the upside in stronger market environments while opportunistically collecting option premiums in other market conditions, relative to its Benchmark, over full market cycles.
Where can the Fund fit in your portfolio?
– Potential to reduce volatility in the equity portion of your portfolio
– An alternative equity approach
– May provide additional income in your portfolio
No investment strategy, including a total return strategy, can ensure a profit or protect against loss. Option writing may limit the amount of capital appreciation, especially in a rapidly rising stock market. The short-term return profile might be unattractive; hence this strategy is not suitable for shorter-term investment horizons. The CBOE S&P 500 BuyWrite Index (BXM) is a benchmark index designed to track the performance of a hypothetical buy-write strategy on the S&P 500 Index.
You should carefully consider the investment objectives, potential risks, management fees, and charges and expenses of the Fund before investing. The Fund’s prospectus contains this and other information about the Fund, and should be read carefully before investing. You may obtain a current copy of the Fund’s prospectus by calling 1-877-322-0575 or download a prospectus.
Distributed by Unified Financial Securities, Inc., 2960 N. Meridian St., Ste. 300, Indianapolis, IN 46208 (Member FINRA).