Lloyd said the fund uses over-the-counter single-stock options rather than listed because it sells options with specific strikes, expiries and start dates. The portfolio references U.K. large and mid-cap stocks, some of which do not have listed options. It sells the options on a quarterly basis and chooses counterparties predominately for their pricing. Lloyd declined to name firms.
"We think this strategy is a good one," said Lloyd. He attributed its steady growth to demand for income-yielding equity investments. "The fund is quite well suited for current market conditions," he explained.