Haig Bathgate: If we’re going to do passive, let’s do it smart

Tuesday, July 17, 2012

Haig Bathgate, chief investment officer, talks about boosting income using smart structures and playing the dividend market.

In a questions and answer style interview, Haig comments initially on: How Turcan Connell employ beta strategies into portfolios?

"We tend to use smarter beta products. We worked with Société Générale (SG) to launch a US defensive income structure, which is a much better and enhanced way to gain access to the index than a vanilla exchange traded fund (ETF) or index tracker. This SG fund gives exposure to the S&P 500, but it boosts the income return through covered calls, although this caps some of the index upside. It also uses some of the call premium to buy some downside protection.

It sells daily 2% out-of-the-money call options to deliver income, although it gives away some upside. This strategy delivers 4% income a year. If we’re going to do a passive strategy, let’s do it smart."

To read the article in full, click here.