Scottish Widows Investment Partnership's (SWIP's) head of European Equities, Steven Maxwell, is to head up the group's European Income fund.
The fund has been launched as part of the group's UK OEIC range in response to increasing investor demand for equity income funds.
Maxwell says the aim of the fund is to provide an income in excess of the FTSE Europe ex UK index together with capital growth over the long term by investing in a select portfolio of approximately 30 to 50 stocks.
He says: “The benefits for investing for income in Europe are clear; a largely untapped market, high and growing yields and the benefits of diversification which can reduce overall portfolio risk.
“Income investing has, until recently, been very much focused on the UK market but European companies have the potential to offer an attractive and growing income for investors and provide diversification from their UK counterparts.
“There are now real opportunities to deliver a high and growing yield from companies outside of the UK and particularly those in Europe.”
Maddock, head of retail at SWIP, adds: “We believe that European income funds will appeal to investors looking for solid yields, diversification and growth with lower volatility.
“These benefits of income investing are going to become increasingly important for investors concerned about market turbulence.
“The fund will benefit from SWIP’s bottom-up, research-driven investment process which will ensure that we are able to generate strong stock selection ideas.”
The European Income fund has a minimum investment of £1,000 and will be available on the main IFA platforms. It will have an initial charge of 5% and annual management fee of 1.5%.
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