move follows growth in popularity of such funds due to higher yields
Newton and Schroders are both to offer further overseas income funds in the near future.
Newton is to launch a European equity income vehicle early in 2007, subject to FSA approval, while Schroders is to restructure its Far East portfolio as an income offering.
Schroder Far East Income expects to yield around 3.5% and will convert on 1 December, provided the move receives unit holder approval.
Richard Sennitt, who has managed the Schroders fund since November 2001, will continue as manager.
Neil Bridge, head of sales at Schroders, said the group's Oriental Income investment trust raised £150m during a four-week launch period last year, highlighting demand for an Asian fund that offers decent regular yields.
At Newton, the European Income fund is expected to be managed by existing European managers Raj Shant or Aaron Barnfarther.
This launch follows Newton'sAsian Income and Global Higher Income fund launches last November.
The European Income fund is likely to follow the same disciplined yield approach. However, Newton is still modelling portfolios, and sector and stock allocations will be revealed nearer the launch date.
International income portfolios have become popular in recent years, amid higher dividend yields from overseas countries.
New offerings to capture this theme include the Jupiter Japan Income open-ended fund, while Aberdeen launched an Asian Income investment trust last year. Jupiter plans an overseas income fund for Tony Nutt early in 2007.key points
Newton and Schroders launch international income funds
Overseas income been strong theme in recent years
Aberdeen and Jupiter also in market
Caring for children and elderly relatives
Similar to June 2007
Square Mile’s series of informal interviews
Fine reduced to £60,000
Two roles created