Global Secured Options
Investment Objective
Long-term capital appreciation and option premiums consistent with reasonable risk to principal.
The strategy seeks to gain an efficient exposure to the Volatility Risk Premium, by selling secured put options against Global Equity Indices. Our active options selection process is designed to potentially dampen volatility, capture option premium income, balance upside participation with a downside cushion and provide additional diversification to traditional asset allocation. We believe that flexibility inside of mandated parameters may have advantages over systematic strategies.
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Key Tenets of Our Approach
Key 1
Long-term capital appreciation and option premiums consistent with reasonable risk to principal
Key 2
Designed to seek balance between upside participation and a downside cushion
Key 3
No External Leverage: 100% of the total notional value is invested across various Global Equity Index Options
Universe
- Global Equity Index Options that expire in less than 3 months (S&P 500 Index, Russell 2000 Index, MSCI EAFE and MSCI Emerging Markets)
Benchmark
- MSCI ACWI Index
- Blended Putwrite Benchmark
Operating Target
- Underlying equity exposure: MSCI ACWI Index
- Seek to be fully invested in cash-secured puts or covered calls on the Global Equity Indices
Constraints
- Targets 100% cash-secured puts or covered calls on Global Equity Indices
- No external leverage
Vehicles
- Separately Managed Account
- Mutual Fund
The MSCI All Country World captures large and mid-cap representation across 23 Developed Markets (DM) and 23 Emerging Markets (EM) countries. With 2,480 constituents, the index covers approximately 85% of the global investable equity opportunity set. The MSCI EAFE Index is an unmanaged, market capitalization weighted total return index widely used as representative of equity performance in Europe, Australia and the Far East It includes dividends net of foreign withholding taxes. Returns are sourced from MSCI. The Index is unmanaged.
The Blended PutWrite Index is comprised of four benchmarks, weighted 40% CBOE S&P 500® PutWrite T-W Index, 10% CBOE Russell 2000® PutWrite Index, 40% CBOE MSCI EAFE PutWrite Index and 10% CBOE MSCI Emerging Markets PutWrite Index. It is provided so that investors may compare the performance of the Portfolio with the performance of a combination of indices that the Advisor considers similar to the Portfolio. The Index is unmanaged. One cannot invest directly in an index.
This website is for informational purposes only. GIM products are actively managed and their characteristics will vary. All investment has risk, including the risk of loss of principal. There can be no assurance that efforts to manage risk or to achieve any articulated investment objective will be successful. An investor should consider investment objectives, risks, charges and expenses carefully before investing. For additional information regarding risks and about the firm, please refer to Related Literature and Disclosures.
Fact Sheet
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Commentary
Learn MoreThis website is for informational purposes only and is not a solicitation for any product or service. GIM products are actively managed and their characteristics will vary. All investment has risk, including the risk of loss of principal. There can be no assurance that efforts to manage risk or to achieve any articulated investment objective will be successful. An investor should consider investment objectives, risks, charges and expenses carefully before investing.
The MSCI All Country World captures large and mid-cap representation across 23 Developed Markets (DM) and 23 Emerging Markets (EM) countries. With 2,480 constituents, the index covers approximately 85% of the global investable equity opportunity set. The Index is unmanaged. One cannot invest directly in an index.
Performance quoted is past performance and is not a guarantee of future results. Products have fees that reduce their performance, indexes do not.
Investors cannot invest directly in an index.
Glenmede Investment Management, LP claims compliance with the Global Investment Performance Standards (GIPS®).
GIPS® is a registered trademark of CFA Institute. CFA Institute does not endorse or promote this organization, nor does it warrant the accuracy or quality of the content contained herein.
Glenmede Investment Management, LP, a registered Investment Advisor, is an affiliate of the Glenmede Trust Company, NA (GTC). The “Firm” is defined as all investment advisory accounts managed by Glenmede Investment Management LP. Effective January 1, 2007, the Investment Product Management Group of GTC became Glenmede Investment Management, LP. All performance prior to January 1, 2007, shown here as the performance of GIM, was previously reported as the performance of the Investment Product Management Group of the Glenmede Trust Company.
All of the composites’ valuations and returns are computed and stated in U.S. Dollars. Net numbers are net of max allowable management fee for this strategy. Additional information regarding the Company’s policies for valuing portfolios, calculating performance and preparing compliant presentations, is available upon request. A GIPS® compliant presentation, as well as a complete list of firm composites and performance, can be requested from GIM Client Service at 215.419.6662. Please see the GIPS® presentation for further explanation.
This website is for informational purposes only and is not a solicitation for any product or service. GIM products are actively managed and their characteristics will vary. All investment has risk, including the risk of loss of principal. There can be no assurance that efforts to manage risk or to achieve any articulated investment objective will be successful. An investor should consider investment objectives, risks, charges and expenses carefully before investing.