CastleStone - Equity High Yield & Premium Income Fund

EHY vs Indices 30 Oct 14, (White) with FTSE 100 (Yellow), Dow Jones Index (Pink) and Goldman Sachs Dividend & Premium Income Fund (Green)


Equity High Yield & Premium Income Fund

Who should consider this fund?

Investors looking for quality income obtained from higher yielding stocks plus premium income from selling covered call options. This fund is a substitute for many long-only developed market equity funds.

  • Long-only, liquid, completely transparent, simple to understand, daily traded, unleveraged and currency hedged portfolio
  • The Fund will allocate its assets to a portfolio of listed, exchange traded equities which the investment manager believes to be semi-monopolistic, have inelastic demand, “quality” fundamentals and high dividend yield while enhancing the return by writing covered call options.

Global equity markets saw a jump in volatility over the month of March. The Equity High Yield & Premium Income Fund rose over the month as an increase in option premium outweighed the equity holdings’ performance. There were a few notable performances across our Australian holdings as concerns over a soft spell of Chinese economic data and fears surrounding a Chinese credit crunch didn’t end up materialising.

With the interconnectedness of Australia’s natural resource led economy and Chinese raw material demand we saw Australian financials underperform over February. But with those expectations abating over March, it provided us the opportunity to increase our exposure to the sector. We bought Bendigo & Adelaide Bank which focuses on the retail banking space across Australia.

Over March we also further diversified the Fund’s holdings by gaining exposure to AT&T and Verizon in the US and Centrica and National Grid in the UK. Telecommunication and utility companies offer a stable, high yielding dividend in a conservative defensive sector. We have built up positions across the top financial,  pharmaceutical,  utility  and consumer non-cyclical companies within their respective regions and will now look to increase exposure across our focus of Western Europe, United States, United Kingdom and Australia.

For more information for purchasing this product, please feel free to contact us.

Click here for download Fund Fact Sheet (pdf version)

Contact Us

PT. Equatorial Management Consulting Services
Graha Simatupang Tower II B 2nd Flr
Jl. TB Simatupang Kav. 38
Jakarta 12540
Phone. (6221) 29712776
Fax.      (6221) 29712778