Barclays Capital will bring an enhanced income fund to market in June when it launches FTSE Value In...
Barclays Capital will bring an enhanced income fund to market in June when it launches FTSE Value Income. The vehicle will have a fixed five-year lifespan and will aim to provide 10% yield, paid out quarterly, through a combination of FTSE 100 dividends and a derivative overlay allowing the use of call options to boost income. Barclays will sell calls each quarter with a strike price of 10% out of the money. In addition to the 10% yield, investors will receive any capital appreciation in the index up to 10% per quarter. However, capital losses will be commensurate with any falls in ...
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