So you like the Magic Moo Cow® Strategy and you want it all managed for you?

The Managed Options Opportunities Fund (“MOO™”) could be suitable for you.

The Buy-Write Strategy is a popular way to generate regular monthly income through premiums, possible dividends and franking credits, and reduce downside in falling markets by supplementing falls in share prices with the income generated. Investing in the MOO™ Fund gives you access to the strategy without the need to manage it all yourself.

Plus… through MOO™ you can also enjoy:

Professional Management

If you don’t have the time, expertise or interest in managing your own strategy, you can have it managed for you through MOO™.

MOO™ is managed by Excela – an Australian boutique fund manager whose aim is to provide independent investors with a choice of innovative, exciting and results producing investments that enable them to build a complete investing portfolio.

Its Chief Investment Officer, Peter Spann, has over 15 years of practical, hands on experience investing in buy-write strategies and heads a team of experienced portfolio managers, researchers and investment professionals.

Monthly Income Distribution

The MOO™ Fund will write options over a portfolio of shares selected from the top 50 ASX listed companies by market capitalisation.

Your returns can come from a variety of sources including:

  • options premium income;
  • regular dividends from direct investments in the ASX listed securities;
  • franking credits;
  • any interest payments from cash deposits; and
  • medium to long term capital growth in the overall portfolio.

Any premium income and dividends will be distributed monthly. You can receive this as income or you can choose to re-invest, potentially enhancing your capital growth.

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Diversification

Pooling your funds with other investors enables Excela to invest in a greater variety of shares than most individual investors are able to. This reduces your exposure to loss from a single share or sector.

Get started for less

MOO™ allows you to start using the buy-write strategy with the relatively small amount of $5,000 (with a monthly investment plan of at least $100) whereas generally you’d need a larger amount of capital to successfully trade a buy-write strategy on your own.

Less paperwork & admin for you

Individual investors in the share market using a buy-write strategy have to manage all the activities of their portfolio including rights issues, dividends, written and taken call and put positions, margins and collateral requirements of the Australian Clearing House Corporation, voting at annual general meetings and extraordinary general meetings and many other administrative activities - Excela and Fundhost take care of this for you. You will be provided with one simple, regular statement for your ease of reference.

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MOO™ makes the buy-write easy!

If you’d like to use the buy-write in your investment strategy and have it managed for you, then MOO™ could be for you!

How MOO™ is managed

The Investment Manager will run this core process each month, and it will be monitored daily.

Step 1 Re-confirm the Investment Universe

The Investment Universe of MOO™ includes the top 50 ASX listed companies by market captilisation.

Step 2 Apply Negative Screens

This part of the process is designed to eliminate stocks that are relatively less suited to the strategy and may include:

  • Availability of appropriate call options
  • Liquidity of available call options
  • Relatively unfavourable underlying stock price trends
  • Individual stocks or sectors demonstrating relative stress or crisis

Step 3 Apply Positive Screens

These are aimed at identifying stocks that are relatively more suited to the strategy. These screens may include:

  • Potential for premium / income
  • Favourable option premium to volatility ratios
  • Individual stocks or sectors demonstrating relative strength or growth and/or dividend potential

Step 4 Portfolio Construction

The portfolio is then constructed taking account of the above screens, current holdings, individual stock risks, and suitability to the strategy. Stock weighting is designed to minimise risks given an expected rate of return.

Step 5 Generating Premium Income

Where appropriate out-of-the money call options are written against shares in the portfolio to generate income and allow for capital appreciation. These will generally be written with an approximate one month expiry date.

Step 6 Continuous Monitoring

The Investment Manager continuously monitors the portfolio. This may include a portfolio review prior to / at the relevant exercise date to decide which shares are likely to be exercised. Defensive strategies such as closing out option positions, obtaining option protection or selling shares may be applied in times of high market volatility or where the Investment Manager is concerned that the risk of a market correction is heightened.



Find out more & Invest

You can find out more about the MOO™ Fund in the Product Disclosure Statement (PDS).

Investments in MOO™ can only be made using the application form inside the MOO™ PDS document.You should read the PDS before making a decision to invest.

You can download a copy of the MOO™ PDS now at www.excela.com.au/funds/excelaMOOPDSdownloadform.html or by contacting your Adviser, FUndhost on 02 8223 5400, or the Moo Team on 1800 877 877.

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If you would like Advice on this investment, you can contact an Investment Adviser at Freeman Fox® on 1800 000 369.

Important Information
Fundhost Limited ABN 69 092 517 087 AFSL 233 045 (“Fundhost”) as the Responsible Entity is the issuer of the Managed Options Opportunities Fund (“MOO™”) ARSN 139 641 946. Excela Pty Limited ABN 25 124 028 244 (“Excela”) is the Investment Manager for MOO™. Excela is a Corporate Authorised Representative of Freeman Fox® Limited which is the holder of an Australian Financial Services Licence (246510) and a Market Participant of the Australian Securities Exchange (“ASX”).

This information has been prepared without taking into account your investment objectives, financial situation, or
needs. Before making an investment decision you should consider the appropriateness of the information having regard to these matters. Before you invest it is important that you read and understand the terms set out in the MOO™ Product Disclosure Statement (“PDS”) dated 20 October 2009. In particular, it is important that you understand the risks associated with an investment in MOO™ set out in the PDS.

A copy of the PDS can be obtained at www.excela.com.au/funds/excelaMOOPDSdownloadform.html or by calling The MOO Team on 1800 877 877.