LOM fund makes 9.5% return in first year
LOM Asset Management’s Stable Income Fund made a return of 9.54 percent in its first year, the company said.
As at the end of July, the fund had assets of approximately $25 million after 12 months of operation.
LOM said the fund had exceeded its stated benchmark return by over nine percent and stacked up favourably against other funds in its category on a global basis.
The Bloomberg composite of global balanced funds declined by 13.89 percent over the same time period while the composite of intermediate bond funds fell 1.14 percent.
The fund invests in high-paying securities with an option writing overlay programme.
LOM said that while primarily invested in US dollar-based assets, the fund also looks to other regions for higher-paying securities as a means of providing extra income to fund investors and to hedge against potential erosion in the value of the US dollar.
The Stable Income fund is managed by senior portfolio manager Bryan Dooley.
“We are happy that we are able to provide a product that fits the needs of the local market by providing a steady stream of income which investors crave in this low rate interest environment but we have also been growing the fund’s principal value at least in line with the prevailing rate of inflation,” Mr Dooley said.
“Furthermore, the option writing programme is a unique strategy which allows us to actually profit from the high levels of volatility and economic uncertainty experienced in today’s markets.
“Because so much of the future progress of the global economy is now in the hands of unpredictable government policies, we expect market volatility to continue unabated for at least the next few years.
“However, one thing that is very predictable is the aging demographics of the world’s largest economies and their inevitable quest for higher and relatively safer sources of income. Our job is to stay ahead of this trend and continue to deliver results.”
Need to
Know
2. Any poster that insults, threatens or verbally abuses another member, uses defamatory language, or deliberately disrupts discussions will be banned.
3. Users who violate the Terms of Service or any commenting rules will be banned.
4. Please stay on topic. "Trolling" to incite emotional responses and disrupt conversations will be deleted.
5. To understand further what is and isn't allowed and the actions we may take, please read our Terms of Service
- Should liquor stores be able to sell alcohol on Sundays?
- Yes
- 71%
- No
- 27%
- Don't Know
- 1%
- Total Votes: 2016
- Poll Archive
Comments
You must be registered or signed-in to post comment or to vote.
Published Aug 18, 2012 at 7:52 am (Updated Aug 18, 2012 at 7:51 am)