RT Journal Article
SR Electronic
T1 New Options-Based Closed-End Funds Designed for Yield and Risk Management
JF ETFs and Indexing
FD Institutional Investor Journals
SP 12
OP 17
VO 2005
IS 1
A1 Paul C. Williams
A1 Matthew T. Moran
YR 2005
UL http://guides.pm-research.com/content/2005/1/12.abstract
AB Twenty-four new closed-end funds that use options strategies raised an aggregate of more than $13 billion in assets in the 12-month period ending in June 2005. Closed-end funds have certain advantages in dealing with options instruments, in that such funds are not subject to liquidation to cover redemptions or exchanges of assets for stock. A number of factors have facilitated the growth of these funds, including low long-term interest rates, lower expected equity returns for investors, the availability of new options performance benchmarks, good press coverage of the Ibbotson study on the BXM buy-write index, and increased investor interest in higher yield and lower volatility investment products.