Also known as a buy-write strategy, the Fortitude Equity Income Fund is long-only and seeks to achieve its return objectives mainly by buying stocks with high dividends and enhancing those payouts by using derivatives.
"We want to target the S&P/ASX 100 and we will be heavily concentrated in the top 20 listed companies," Fortitude managing director John Corr said.
"We think that returns from equities going forward will largely come from dividends and we think we can enhance that by our skill set in Australian options and equity derivatives."
