Steward Covered Call Income Fund Class C (SCJCX)

Overview

The fund focuses on a strategic approach to investing in large cap, dividend-paying equity securities that are traded on U.S. exchanges. It employs a unique investment strategy that not only involves holding these high-quality stocks but also involves writing (selling) covered call options on the same securities. This tactic serves a dual purpose: it generates options premium income for the fund while simultaneously aiming to reduce the overall volatility of the fund's portfolio. This method of investing seeks to provide a more stable investment option compared to the broader, more uncovered large cap securities market, which can be subject to greater swings in value.

Products and Services

• Investment in Large Cap Dividend-Paying Equity Securities

This service involves the fund selecting and investing in large cap stocks that pay dividends. These are generally well-established companies listed on U.S. exchanges, which are believed to offer a more stable investment compared to smaller, more volatile companies. By focusing on dividend-paying stocks, the fund aims to provide investors with a consistent income stream in addition to potential capital appreciation.

• Writing Covered Call Options

The fund actively engages in writing (selling) covered call options on the equity securities it holds. This strategy allows the fund to earn options premium income, providing an additional revenue stream beyond the dividends from the underlying stocks. Covered call writing also serves to lower the portfolio's volatility. Since the option is "covered" by the underlying stock held in the portfolio, this strategy can help mitigate risk, aligning with the fund's overall goal of achieving a balance between income generation and capital preservation.