The ING Global Advantage & Premium Opportunity Fund (IGA), according to the fund's website, invests in 750 to 1,500 common stocks, seeking through diversification to reduce exposure to individual stock risk. IGA seeks a target holding of 60% in U.S. stocks and 40% in international stocks.
IGA sells, or writes, call options on selected security indices and/or ETFs, on an amount equal to approximately 60-100% of the value of the fund's common stock holdings. The fund also hedges major currency exposure to reduce volatility of returns.
As of January 18, 2013, IGA's market price was $12.05. The net asset value was $12.79, for a discount of 5.79%. The current quarterly dividend is $.28. At the close of trading on January 22, the market price was $12.00, for a yield of 9.33%.
According to Morningstar, the annual expense ratio is 1.0%. The fund does not use leverage.
The top common stock holdings as of 9/30/2012 were: Apple Inc (2.72%), Exxon Mobil Corporation (1.83%), Microsoft Corporation (1.24%), and Pfizer Inc (1.05%).
Shares of IGA were purchased for the portfolio in January, 2013. It comprises 5.0% of the portfolio. It was chosen because of its international exposure and the use of writing call options to enhance income.
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