RNTY

RNTY targets an annual income level of 12% by directly investing in US-listed real estate companies and employing a covered call strategy. The actively managed fund provides exposure to the price returns of select securities, subject to a cap on potential investment gains. The portfolio includes firms, including REITs, that generate at least 50% of their revenue from the real estate industry as well as ETFs that track a real estate index. The fund evaluates companies for price and volatility, then selects securities based on both market cap and the liquidity of their options contracts. To achieve the 12% income target, the fund may utilize one or a combination of options strategy, usually consisting of long exposure, covered call writing, and US Treasurys as collateral. These strategies, however, affect the risk-return profile, volatility, income generation, gain potential, and capital preservation of the fund. The fund aims to meet the 12% target through monthly income distributions.