Performance Reports
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Accelerator fund generates
regular monthly income
from Blue Chip shares
The Accelerator Fund aims to distribute regular cash income in excess of 1% per month on average straight into your bank account each month!
The Excela Australian Equity Income Accelerator Fund™ (called Accelerator for short) invests in Australian Blue Chip shares and generates income using the Buy-Write strategy.
It aims to produce in excess of 1% per month on average in income distributions. From inception to 31 July 2011, the total return of the Accelerator Fund was -1.33%, and income distributions were 27.5% or an average of 1.31% per month.
The lowest income distribution was 0.83% in June 2011 and the highest was 2.28% in February 2010. (Current as at July 2011)
A realistic expectation of income distributions from the fund could be up to 0.8% to 1.5% per month. (The capital value of the fund can rise and fall. Read more about the Risks of the Buy-Write strategy.)
That could mean between up to 10% to 18% income distributions for you on your investment in a year. Or for every $10,000 you have invested, that could mean up to $80 to $150 on average per month in income.
Or if you have a retirement nest egg of $500,000 to allocate to investing, that could mean an annual income distribution of up to $50,000 to $90,000 or an average monthly income distribution of up to $4000 to $7500 per month … cash income straight into your bank account.
At the rate of income distribution that the Fund generated over the last 12 months to the end of July 2011, somebody who invested $500,000 in the fund could have received $88,500 in income distributions.
You can see the actual monthly income distribution since inception in Latest Accelerator prices. Look at the right hand column for income distributions paid.
The Accelerator Fund could give you regular cash income to potentially:
- Pay for a better lifestyle by supplementing your regular income
- Pay for your hobbies or other fun things in life
- Take you and your family on holidays
- Fully fund a better lifestyle in your retirement
- Allow you to retire earlier than you thought.
And perhaps best of all, the Accelerator Fund does this by investing in some of the largest and most recognisable companies listed on the ASX (Australian Securities Exchange) – that’s companies such as mining giants BHP and Rio Tinto, banking heavyweights Westpac and Commonwealth Bank, and retailers including Woolworths.
The Accelerator Fund can invest in these companies as part of the Buy-Write strategy to produce a monthly income.
How the Accelerator Fund generates monthly income from Blue Chip shares
The underlying strategy of the Accelerator Fund is the Buy-Write strategy.
In brief, the Fund Manager purchases a parcel of shares at the beginning of the month, and then at the same time sells an option (or promise) to sell those shares to a third party at a higher price at the end of the month, if they reach that price. In return, the Accelerator Fund is paid an income called a premium.
On carefully selected Blue Chip shares, that premium can be up to between 1 and 2% per month. This Buy-Write strategy (buy the shares, write or sell the option or promise) is how the Accelerator Fund is able to generate higher income each month by investing in Blue Chip shares.
If you’re curious, learn more about how the Buy-Write strategy works.
The Buy-Write strategy: normally out of reach to the average investor, now available in the Accelerator Fund
If you’re not familiar with the Buy-Write strategy, this can sound a little strange; someone agreeing to buy shares from the fund at a higher price than it paid for them – and paying cash income for that option!
Yet it happens each and every month, month after month. In the 2010 calendar year there were over $26 billion dollars worth of options traded in the Australian Options Market.(1)
The Buy-Write strategy has been in existence in Australia since 1976. However, because it requires a degree of skill and potentially large amounts of funds to trade effectively, it’s normally reserved for high net worth investors and large institutional investing divisions (like banks) trading their in-house funds.
Well now the Buy-Write strategy is available to everyday Australian investors, professionally managed through the Accelerator Fund.
By pooling your capital with other investors, you can now take advantage of the regular income the Buy-Write strategy offers.
The Accelerator Fund can potentially deliver superior income distributions. Like any investment it also carries risk. The great benefit of the Buy-Write strategy is the risk is generally no greater than investing your money in Blue Chip shares.
Indeed, the ASX states the Buy-Write strategy actually reduces the risk of holding shares alone. (For more information about the risks, read the PDS or this explanation of the Buy-Write strategy.)
The Accelerator Fund: regular monthly income, less risk than just holding shares alone
If you are seeking additional income that is:
- Distributed on a regular monthly basis
- Has the potential to outperform AND is lower risk than standard share ownership alone
- Is professionally managed by experts with decades of personal experience with the underlying strategy
- Is ‘set and forget’ – you invest your money and then simply receive your distributions each month,
then the Accelerator Fund could be the choice for you. For investors wishing to secure a passive monthly income stream from the Accelerator Fund, you must first read the PDS and then complete the application form contained within. Investments in the Accelerator Fund should only be made after reading the PDS. You can download a copy of it here.
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