Better Business: Covered call strategies

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With low interest rates and an ever increasing number of investors nearing retirement, income products are in high demand...

Fund rules allow many managers to use derivatives in their portfolios and a number are using these rules to provide enhanced income for their investors. Simon Gergel, UK equity income specialist at Allianz Global Investors, explains how a covered call overwriting strategy operates. Last year a number of fund groups came together to provide educational material for intermediaries to use within their own businesses and with their end clients. The result is a library of video content, complied for the end consumer, which can be downloaded and put on to individual intermediary websites. ...

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