Collective Investment Fund (CIF)

Connors Covered Call Fund

Investment Manager:

Connors Investor Services, Inc.

Fund Trustee:

Alta Trust Company

Objective:

Maximize risk-adjusted returns by combining the long-term capital appreciation potential of stocks with the lower volatility and capital preservation features of covered call option writing.

Fund Strategy:

The foundation of the Fund’s strategy is a portfolio of carefully selected large-cap equities. The security selection process emphasizes fundamental quality, strong profitability, low debt levels and proven management. The Fund will write covered call options against the selected securities. Calls will generally be written on between 25% to 75% of the total value of the portfolio. This strategy reduces the upside potential of the Fund in strong bull markets but provides immediate income and lowers portfolio volatility. In addition, the Fund may employ S&P 500® put options to minimize downside risk at its discretion.

CUSIP:

208236109

Fact Sheet:

Strategy Inception:

1974

CIF Inception:

2016

Collective Investment Fund Basics

  • A collective investment fund (CIF), also known as a collective investment trust (CIT), is a tax-exempt, pooled investment vehicle maintained by a bank or trust company.
  • CIFs were historically designed as investment vehicles for defined benefit plans, but they have evolved over the years. Today, they are available for investment by ERISA retirement plans (i.e., 401k, profit sharing) and certain other types of government retirement plans.

Connors serves as the investment manager of the “Connors Covered Call Fund” maintained at Alta Trust Company.

The Fund is designed to serve the investment needs of tax-qualified, employer-sponsored retirement plans.