Van Hulzen Asset Management and Witter Partners have launched the Iron Horse Fund, a mutual fund that invests in dividend-paying stocks and uses call options to reduce volatility and create incremental income. Van Hulzen is the fund’s advisor and Witter is its distributor and marketer.
Van Hulzen will use its proprietary risk management process to offer lower portfolio volatility than the S&P 500 Index and other major equity indexes.
“We believe this is the perfect time for a covered call strategy, which is designed to reduce equity risk and increase income,” said Van Hulzen CEO Craig Van Hulzen. “Slower economic growth stands to limit stock price appreciation, and enormous sovereign debts are adding volatility to securities markets. We feel investors should put more emphasis on income and risk management.”
Raymond Godfrey, chairman of Witter Partners, added, “The Iron Horse Fund seems especially timely and suitable in the current market environment. We believe this new fund will have strong appeal for conservative investors seeking a disciplined strategy for capital appreciation and lower volatility.”