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Gervais Williams buys insurance against FTSE correction
by Robert St George on Nov 04, 2013 at 13:08
Williams purchased the put option with an index strike level of 5,800 – the FTSE 100 currently stands 17% higher at 6,769 – to cover approximately one-third of the fund’s assets at a cost of almost £4 million.
‘The advantage of holding a put within the context of a broad portfolio is that should unexpected events adversely impact on the level of equity markets generally, then the put tends to partially offset the market fall,’ explained Williams (pictured). ‘This offers some protection in value to the overall net asset value of the company, whilst enabling the manager to remain invested and generate revenues.’
The Diverse Income Trust has been the absolute best performer by net asset value in the UK Growth & Income sector over the past year, returning 45% compared with an average of 29.5% from its peer group.
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by Alex Steger on Dec 11, 2013 at 10:19