Santa Barbara County Employees' Retirement System hired Rampart Investment Management for a $33 million passive total return options strategy, said Adam Bickelman, spokesman for Rampart, in e-mailed response to questions.
The board decided to begin the covered call program with 2% of the system's assets, with the potential to increase it to 4% of SBCERS' assets in 2011 after the program is reviewed.
The option strategy uses the Chicago Board Options Exchange investment approach which monetizes the volatility of equity assets creating a new income stream from selling index call options.
Vincent B. Brown, CEO of the $2 billion system could not be reached by press time for details.