Vontobel launches a new European equity fund
27 MAR, 2025
Vontobel has announced the launch of the fund Vontobel Fund - European Equity Income Plus, an active management investment solution that offers investors exposure to income-oriented European equity.
It invests in a high conviction, quality, and high dividend European stock portfolio, whose aim is to obtain income combined with capital growth, compared to the MSCI European Economic and Monetary Union (EMU) Net Total Return EUR index.
The fund applies option strategies, mainly through the sale of call options on specific securities, to generate a diversified source of income, in addition to dividends. The overlay of options used can provide some protection during market downturns.
Key features of the fund
Vontobel Fund - European Equity Income Plus stands out for the following attributes:
- Provides two sources of income
- Concentrated focus on quality dividend stocks (30-35)
- Investments in stocks divided between large-cap companies (80%) and mid-cap companies (20%)
- Dynamic approach to handle extraordinary market conditions
- Consideration of strict ESG criteria.
The fund will be managed by Robert Borenich and deputy manager Christoph Loy, from Quantitative Investments (a Vontobel boutique), whose experience in equities and options dates back almost two decades. Covered option writing strategies have become a key component of several funds and mandates managed by the boutique.
The aim of this new fund is to distribute income to shareholders and outperform the benchmark index by combining three uncorrelated flows: quality dividends, call options, and dynamic participation through active management. Thanks to its broad allocation to high and mid-cap European stocks, the fund can offer investors an attractive combination of defensive and quality stocks with an attractive dividend yield, while call options can provide an additional source of income, as well as some protection in bear markets.
Robert Borenich, manager of Vontobel
European investors will be able to access an attractive investment proposal at a time when market sentiment is increasingly positive towards European equities. By allocating to quality European dividend stocks with an income approach, the fund can also add value during periods characterized by sideways movement in the markets.
Andrea Gentilini, head of Quantitative Investments (boutique of Vontobel)
