Aurora Infrastructure Buy-Write Income Trust (AIB)

Aurora Infrastructure Buy-Write Income Trust (AIB) is a fund that invests in the portfolio of infrastructure securities listed on the global stock exchanges. The fund aims at increasing the derived revenue by selling call options over these securities over the medium term. AIB listed on the Australian Stock Exchange on 24th of December, 2007. The fund is managed by Talon Infrastructure which is the responsible entity for the trust.

At any one time the fund’s portfolio can have normally 20 securities that will be reweighted and rebalanced after every three months. A global infrastructure consultant will be responsible for the selection of the securities through a process of careful evaluation. The Trust may use gearing to improve the investment approach. Apart from this the fund will also look for the means to protect the portfolio by buying put options against each stock contained in the portfolio, and by conducting substantial currency hedging.