Steward Covered Call Income Fund - Class R6 (SCJKX)

Overview

This fund focuses on creating a portfolio majorly consisting of large cap, dividend-paying equity securities that have been listed on U.S. exchanges. Its primary objective is to enhance the income through options premium by writing (selling) covered call options on these securities. This strategy is aimed at reducing the volatility of the fund's portfolio, making it a potentially safer investment option compared to investing directly in the uncovered large cap securities market.

Products and Services

• Investment in Large Cap, Dividend Paying Equity Securities

  This service includes the selection and investment in large cap equities that offer dividends. These are high-value companies with substantial market capitalization, often seen as stable investments. Dividends provide a regular income stream to investors, making these securities attractive for those seeking steady returns.

• Covered Call Options Writing

  The fund employs a strategy of writing (selling) covered call options on the equity securities within its portfolio. This approach generates additional income through the receipt of options premiums. Covered calls involve selling call options on a security the fund already owns, offering a potential income source while providing some degree of protection against price declines in the underlying asset. This strategy also helps in lowering the portfolio's overall volatility when compared to the broader, uncovered large cap securities market.