ING today announced the launch of the ING Global Advantage and Premium Opportunity Fund, a closed-end fund that invests in a portfolio of global common stocks combined with an index call option strategy.
The fund is trading on the New York Stock Exchange as ticker “IGA.”
“More and more financial advisors and investors are seeking to diversify their portfolios through international investing,” said Bob Boulware, president and chief executive officer, ING funds distributor. “The ING Global Advantage Premium Opportunity Fund is another way for investors to have exposure to many key world markets and industries while also taking advantage of the extensive money management resources that ING has worldwide.”
ING Global Advantage and Premium Opportunity Fund raised $345 million in an offering, where Merrill Lynch, Pierce, Fenner & Smith Inc. acted as sole bookrunner and co-lead manager, and Citigroup Global Markets Inc., UBS Securities LLC and A.G. Edwards acted as co-lead managers.
The fund will invest in common stocks of companies located in a number of different countries around the world, normally in approximately 550 common stocks that make up the Standard & Poor’s 500 Stock Index and the Morgan Stanley Capital International Equity Index.
The target weighting of the fund’s equity portfolio aims at 60% in U.S. domestic common stocks and not less than 40% in international (ex-U.S.) common stocks.
The fund will also seek to generate gains from option premiums through an index call option strategy. The Fund’s principal options activity will consist of writing index call options on selected indices on 60-100% of portfolio assets.