Van Hulzen Asset Management has teamed up with Witter Partners to launch a new mutual fund named the Iron Horse Fund, investing in dividend-paying US equities and operating a covered call strategy.

Van Hulzen, based in northern California, is advisor to the fund, and Witter Partners, headquartered in New York City, is Van Hulzen’s strategic distribution and marketing partner. 

Van Hulzen will use its proprietary risk management process, which aims to target lower portfolio volatility than the S&P 500. 

“We believe this is the perfect time for a covered call strategy, which is designed to reduce equity risk and increase income. Slower economic growth stands to limit stock price appreciation, and enormous sovereign debts are adding volatility to securities markets. We feel investors should put more emphasis on income and risk management,” said Craig Van Hulzen, chief executive of the asset manager.

“We believe this new fund will have strong appeal for conservative investors seeking a disciplined strategy for capital appreciation and lower volatility,” added Raymond Godfrey, managing partner and chairman of Witter Partners.