Van Kampen Launches Equity Premium Income Fund; Offers Investors Enhanced Income Potential Utilizing a Covered Call Strategy.CHICAGO -- Van Kampen Van Kampen may refer to:
The fund combines an actively-managed portfolio of large-cap Large-cap A stock with a high level of capitalization, usually at least $5 billion market value. large-cap 1. Of or relating to the common stock of a big corporation that has considerable retained earnings and a large amount of stocks with the writing of covered calls Covered Call Having a long position in an asset combined with a short position in a call option on the same underlying asset. Notes: This is considered to be one of the safest option positions. . This strategy is designed to offer income-oriented equity investors the potential for enhanced monthly distributions with less sensitivity to changes in interest rates than other income-generating investments. For equity-oriented investors who decide to reinvest re·in·vest tr.v. re·in·vest·ed, re·in·vest·ing, re·in·vests To invest (capital or earnings) again, especially to invest (income from securities or funds) in additional shares. monthly distributions, the fund seeks to deliver capital appreciation with less market volatility over the long term. "This fund may be a standout choice for clients who are seeking relatively higher and more frequent distributions, and income with less sensitivity to interest rates than other income-oriented investments," said Sandip Bhagat, Fund Manager and Head of the Systematic Strategies team. "Because the fund may offer the opportunity for capital appreciation, with potentially reduced volatility, it may also be a good choice for risk-aware equity investors." Under Mr. Bhagat's leadership, the fund is managed by the Systematic Strategies team, a group of 10 portfolio managers and analysts with extensive experience in quantitative investment strategies. The team currently manages approximately $6 billion in assets for institutional and retail investors Retail Investor Individual investors who buy and sell securities for their personal account, and not for another company or organization. Notes: Retail investors buy in much smaller quantities than larger institutional investors. , as of April 30, 2006. Through a quantitatively driven, research-intensive process, the fund invests in approximately 150 to 250 large-cap stocks with the goal of constructing a portfolio having characteristics similar to the S&P 500 Index, while seeking to provide enhanced returns. The team sells covered calls on 25 to 75 percent of the portfolio. These calls may be written on indices, exchange traded funds Exchange Traded Funds (ETF) Also known as ETF. A basket of stocks similar to an index mutual fund. However, there are a number of important differences between ETFs and mutual funds. ("ETFs") and individual securities. "In this highly competitive marketplace, institutional and retail investors alike have chosen our Systematic Strategies team for quantitative management of their risk-aware assets," said Michael Kiley, President and Chief Executive Officer of Van Kampen Funds. "We believe that the best minds, working together, offer financial advisors and shareholders a significant advantage when it comes to capitalizing on market opportunities." Van Kampen Funds Inc. is a subsidiary of Van Kampen Investments Inc. Van Kampen is one of the nation's largest investment management companies, with $112 billion in assets under management Assets Under Management (AUM) is a term used by financial services companies in the mutual fund and money management or investment management business to gauge how much money they are managing. or supervision, as of May 31, 2006. With roots in money management dating back to 1927, Van Kampen has helped nearly four generations of investors achieve their financial goals. For more information, visit Van Kampen's Web site at www.vankampen.com. Copyright (C)2006 Van Kampen Funds Inc. All Rights Reserved. Member NASD/SIPC. |
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