Rampart accepts full discretion over the investment and reinvestment of assets allocated to one or more of its management services. The underlying management portfolio can be a quantitatively derived selection of stocks or bonds, with or without corresponding hedging instruments or a selection of assets designed to replicate a particular index or subindex.
The following are portfolio management services where Rampart is given full discretion in the management of the underlying investment portfolio(s):
Equity-Based Strategies (ROMS®)
Rampart’s equity option strategies are based upon our mathematically-driven, proprietary technology platform, the Rampart Options Management System (ROMS®), which continually evaluates the relative attractiveness of hundreds of thousands of domestic and foreign equity options.
Index-Based Strategies
Rampart’s Index Option Strategies draw on the principles and structure of the Chicago Board Options Exchange CBOE® S&P 500® BuyWrite Index (BXM). In fact, we were the first licensee of the BXM, the first major industry-accepted benchmark to illustrate the attractiveness of the covered call investment concept.
Since the inception of the BXM, several additional indexes, including the CBOE® S&P 500® 2% OTM BuyWrite Index (BXY), have launched in the marketplace. The BXY provides for potentially greater return than the BXM at a modest increase in risk levels.
These strategies can serve as overlays for passively managed index funds and actively managed large cap portfolios in the tax-exempt marketplace, without affecting the underlying equity managers. In addition, they can have positive features for taxable investors with appropriate underlying portfolios.
