The Premium Global Income Fund is a no-load, open-ended mutual fund. If offers investors the opportunity to achieve an income stream derived from the underlying equity portfolio of global securities.
The Fund will invest in a diversified portfolio consisting primarily of common shares issued by some or all of a group of corporations selected from the TSE 300 Index (the "Canadian Universe"), in common shares issued by some or all of a group of corporations selected from the Standard & Poor¹s 500 Index (the "U.S. Universe"), or any similar successor indices chosen by the Manager should either of these indices cease to be maintained, and in ADRs of the top 200 international corporations, determined by MCM on the basis of market capitalization, of corporations whose ADRs are trading on the New York Stock Exchange or NASDAQ (the "Global Universe"). The shares and ADRs selected and held by the Fund from among the Canadian Universe, the U.S. Universe, and the Global Universe are collectively referred to as the "Portfolio".
To generate additional returns above the dividend income earned on the Portfolio the Fund will, from time to time, write covered call options in respect of all or part of the securities in the Portfolio. The Fund may also hold a portion of its assets in cash equivalents. The Fund may utilize such cash equivalents to provide cover in respect of the writing of cash covered put options, which is intended to generate additional returns for the Fund and to reduce the net cost of acquiring the securities subject to the put option. Cash covered put options will only be written in respect of common shares in the Canadian Universe and the U.S. Universe and ADRs in the Global Universe. The writing of covered call options and cash covered put options will be managed by MCM in a manner consistent with the investment objectives of the Fund.
Investment Strategy
The investment objectives of the Fund are:
- To provide Unitholders with an ongoing stream of quarterly distributions
- To preserve the initial Net Asset Value of the Fund by investing in a diversified portfolio of common shares of corporations selected primarily from the TSE 300 Index and the Standard & Poor's 500 Index, or any similar successor indices chosen by the Manager should these indices cease to be maintained, and American Depository Receipts ("ADRs") of the top 200 corporations, determined by MCM on the basis of market capitalization, of international corporations whose ADRs trade on the New York Stock Exchange or NASDAQ
While the Fund's objective is to achieve these goals there can be no assurance they will be met at any particular time.
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