Franklin, Wisconsin Promissory Notes Series B (SCJAX)

Overview

The fund primarily focuses on investing in a select portfolio of large-cap, dividend-paying equities that are publicly traded on U.S. stock exchanges. By adopting a strategy that includes writing (selling) covered call options on these equity securities, the fund aims to generate income from the options premiums while concurrently aiming to reduce the overall portfolio volatility in comparison to the broader market of uncovered large-cap equities. This investment approach is designed to offer investors a blend of income generation through dividends and option premiums, along with a potential for reduced portfolio risk.

Products and Services

• Portfolio of Large Cap, Dividend Paying Equity Securities

  This product component involves the careful selection and investment in large cap, dividend-paying stocks that are listed on U.S. exchanges. The selection criteria focus on equities that show potential for stability, reliable dividend income, and growth. The aim is to provide investors with a steady stream of income from dividends, alongside capital appreciation prospects.

• Writing Covered Call Options

  As a strategic move to augment income, the fund engages in writing (selling) covered call options on the equity securities it holds. This method allows the fund to earn options premium income. Covered calls involve selling call options on securities that the fund already owns, thereby providing an additional income stream while offering some degree of downside protection. This technique also serves to lower the overall volatility of the fund's portfolio when compared to investing solely in uncovered large-cap securities, aiming for a more stable performance during various market conditions.