FAMCO Covered Call

Overview

Started in 1997, the FAMCO Covered Call strategy seeks to produce equity-like returns with lower volatility and lower beta. The strategy invests in a diversified portfolio of approximately 30-50 domestic equity securities which are combined with an active covered call writing strategy on each individual equity holding. The option overlay strategy is optimized for each equity position and dynamically managed seeking to maximize call premium income while minimizing exercise risk. Actively managing both the equity holdings and the call option strategy aims to capture some upside appreciation potential during increasing markets and generates income that reduces risk exposure during declining markets.