FAQ

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Structure

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What is the legal structure?

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The fund is registered as a open ended investment fund (FGR) under Netherlands jurisdiction and falls under the AIFMD directive of the European parliament. 

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Why did you start the fund?

 

During periods of low interest rates, investors are dissatisfied with money deposits or bond yields, yet wish to avoid the full risks of equity markets. To facilitate their wishes, we decided to open the Double Income Fund as an alternative, with the aim of superior returns compared to those on bond or deposit related products and lower downside risk compared to outright equity holdings.

 

What is the role of the Corporate and Investment Advisory Board?

 

Both boards have an independent informal role. 

The investment advisory board offer advice on market developments and trends directly to the AIFM fund managers. 

The corporate advisory board are more involved with the legal and financial aspects of running the fund and management company. 

The formal control function is the responsibility of the board of directors of the AIFM.

 

Are my assets safe?

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Your assets are subject to market risk. The AIFM make investment decisions and trade, but have no access to your money. Interactive Brokers are the custodian of all monies and assets and control the flow of money in and out of the instruments in which the funds management invests. The AIFM are legally bound to stay within the boundaries and guidelines of the fund  and may not deviate from the specified strategy. Our fund excludes any strategy involving unlimited losses. 

 

What costs are involved?

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The Double Income Fund charges a fixed management fee of 1.2% per year. A performance fee of 15% is levied only on any excess of the target after costs.(High Watermark) Exit fees can apply the 1st 3 years. All discounts are passed on to the fund. Unlike many funds, there are no entrance fees or service charges. 

 

 

Investments Processes

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What does the fund do?

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The Double Income Fund invests in quality large capitalised European dividend equities that trade on mature European exchanges. In addition to this, we incorporate exchange traded options, both to enhance yield and purchase stock at favourable prices. 

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What is  the benchmark?

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To monitor overall performance of our balanced portfolio, we use the benchmark of an equal combination of the Euro Stoxx 50 index and Bloomberg Euro Government Bond UCITS ETF.

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How do the fund managers pick the underlying stocks?

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Our computers generate a list of stocks fulfilling all the investment rules and restrictions. 

Having passed this strict filtering, the fund managers select individual stocks from the list based on, amongst others, the following ratios: P/E, EV/EBITDA, ROI, P/E to Growth and EV/EBITDA to Growth. 

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What is the expected trading frequency?

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Stocks are purchased with an intent to hold for the medium term (2 - 5 years) or until calls are exercised. Expirations dates can range from a same month till 5 years, with an average around the 3 months. So it is likely each stock has calls written against it 2 to 4 times a year. The fund strives for a minimum of 50% of underlying assets having call coverage, looking to increase up to a maximum of 100% if circumstances and premiums warrant.

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What are the main risks of the strategy?

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Covered call writing can limit upside potential. The maximum profit until expiration date is the strike price plus premium and dividends received minus the original cost of stock. The strategy delivers only limited downside protection.  The downside breakeven point is the original cost of stock minus option premiums and dividends received.  Put plainly, we swap some profit potential for some safety. We may make less profits in upward markets, but can lose less in declining markets.

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How is risk management implemented?

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The strategy of consistently writing calls dampens volatility, so automatically delivers less risk on holding the equity. We continuously monitor our portfolio.

If markets decline or other volatile events happen, we have an array of actions able to be taken. Importantly, we exclude strategies involving unlimited losses. 

 

 

MISCELLANEOUS 

 

Who are the fund managers?

 

The Double Income Fund is run day to day by option specialists Ronald Westdorp and Gary Millin, supported by portfolio specialist Ruurd Haan. Besides the three of them, there is further support available from a team of highly trained professionals. We make all decisions internally and do not use services of sub managers, but may purchase ETF’s or other alternatives from professional 3rd parties. 

 

What happens if any main trader leaves?

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The investment advisory board will find a replacement for the trader. Any investors unhappy about the replacement may exit the fund with no financial penalties whatsoever within three months of the announcement of the change.

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How will I be informed about the development of the fund?

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Investors automatically receive the monthly NAV of the fund and annual reporting from AssetCare Fund administrators by email, but may at all times access their individual portfolio information through the fund managers. For all matters, including financial reporting, the fund managers are very open to client contact and encourage visits.

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I want further information on the Double Income Fund, what should I do?

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Please email info@callfund.eu and we will be more than happy to answer questions and help you further. 

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How can the fund be purchased?

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The fund can be purchased or sold at the net asset value (NAV), which is calculated each month by independent administrators. The administrators are AssetCare Fund Services, who process both subscriptions and redemptions. NAV can be valued accurately as the fund invests exclusively in liquid large capitalised instruments and exchange traded options. No costs are involved with the subscription process. The fund has monthly liquidity. Subscription and redemption forms need to be with the administrator five business days before the end of the month. 

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Forms can be downloaded from the Documents menu on our website www.callfund.eu. 

You may also contact AssetCare Fund Services directly at: +31 (0) 20 470 35 50 or email  info@assetcarefunds.com

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