Aurora Buy-Write Income Trust (ABW)

Shares / Stock Code

ABW

Stock Exchange / Sharemarket

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Aurora Buy-Write Income Trust (ABW) is engaged in the operation of investment management in Australia. The fund invests in a geared portfolio of Australian Stock Exchange-listed companies. ABW was listed on the Australian Stock Exchange on July 10, 2006. The Trust aims to derive revenue and medium term capital growth for its investors by implementing an active call option selling strategy. The maximum loan to value ratio (LVR) up to which the portfolio will be internally geared up is 65%. Aurora Funds Management Limited is the manager of Aurora Buy-Write Income Trust.

Cadence Asset Management, which manages more than $80 million of funds in Australia, is given the responsibility of supervising the Trust's investments. Cadence will mainly focus on structuring the portfolio, with an aim of minimising the effect of a major downward movement in the financial markets. However, the portfolio may still face losses in these situations.