Schroders is preparing to launch a fund of funds investing in a range of the group's own Maximiser and fixed income portfolios.
The Managed Monthly High Income fund will be available to investors from 21 May.
It will be co-managed by Thomas See (pictured), head of structured fund management, who runs the covered call option elements of the Maximiser range, alongside bond manager Gareth Isaac.
The new fund will offer a monthly distribution from four different income sources: equities, bonds, property securities and income from volatility. The fund is aiming to offer a potential yield of 5.5% plus per annum.
Investors will gain access to eight of Schroders’ active investment strategies including four equity Maximiser funds: Income Maximiser, Asian Income Maximiser, ISF European Dividend Maximiser and Global Property Income Maximiser.
On the fixed income side, the exposure will be to Sterling Broad Market, ISF Global High Yield, Strategic Bond and Absolute Return Bond funds, with asset allocation split equally across equities and fixed income.
See said: “This is a fund that pays a higher monthly yield from four well-diversified sources of income, several asset classes and multiple geographies, despite a difficult yield environment.
"By tapping into eight of Schroders’ actively managed investment strategies, we can help reduce the risk of relying on the performance of any single fund or strategy, while creating a diversified product with less volatility than a pure equity investment.”
All annual management charges for the individual underlying funds will be rebated back to the fund of fund, so the fund will have a single layer of fees.
It will sit in the IMA Mixed Investment 20-60% Shares sector and will be available in two share classes, the clean fee Z class as well as the A class.
The annual management charges for the A and Z share classes will be 1.25% and 0.625% respectively.
Despite improved risk appetite
FOS award limit increase
Relates to 136 million transaction reports
Ceremony will take place 13 November