The Steward Covered Call Income Fund seeks dividend income and options premium income, with the potential for capital appreciation and less volatility than the broad equity market. The fund employs a “buy-write” strategy, also called a “covered call” strategy, in which the fund buys a stock or a basket of stocks and writes (or sells) call options that cover the stock positions. The strategy can enhance portfolio returns under certain market conditions and reduce volatility. In down markets, the option premium received cushions the price decline in an equity portfolio. The trade-off is that in strong equity markets, the upside potential of the equity investment is limited. This approach is appropriate for investors looking for current income, capital appreciation potential, a diversified equity portfolio, and socially responsible screens.
The Steward Funds are distributed by Crossmark Distributors, Inc., member FINRA. Crossmark Distributors is an affiliate of Crossmark Global Investments, the Steward Funds’ investment adviser. Before investing in a mutual fund, you should read the fund’s prospectus carefully and consider the fund’s investment objectives, risks, charges and expenses. The prospectus contains this and other information about the fund. A copy of the Steward Funds’ prospectus may be obtained free of charge by calling Crossmark Distributors at 800-262-6631.