STGFM SEDS

The strategy aims to benefit from three different sources of return. The core portfolio is invested in liquid, high-quality Swiss equities that pay attractive dividends. To reduce the volatility of the strategy, a covered call strategy is implemented as an overlay to the portfolio, either by selling index calls or by shorting single stock calls directly. Depending on market sentiment, long index put positions are opportunistically used in order to protect the portfolio from major drawdowns. The strategy may furthermore use short puts to build up positions in the underlying stocks in order to benefit from specific market conditions. By fully hedging the currency risk, the strategy takes advantage of the current positive interest rate differential between USD and CHF, thus harnessing the third source of return.

STGFM SEDS

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