Close Finsbury Asset Management has launched an income share class on the Close Finsbury Continental...
Close Finsbury Asset Management has launched an income share class on the Close Finsbury Continental European Equity fund, which is expected to yield above 2.2%.
An initial offer period will run from 21 to 28 February with shares offered at an issue price of E1 each.
Charles Glasse and Christopher Garsten of 2CG are both investment advisers to the fund. The product primarily invests in large cap companies across Europe and holds up to 40 stocks focusing on undervalued stocks with a bias to special situations.
Stuart Alexander, head of distribution at Close Finsbury, said: "Historically, there have been many UK income funds to choose from but very little choice for income-seeking investors when it comes to Continental Europe. With many UK equity income managers finding dividends more difficult to come by, investors need to look elsewhere for income.
"By introducing an income share class to the Close Finsbury Continental European fund, we are meeting this growing demand from investors who want dividend income from their European investments. We will also be exploring the relevance of similar changes to other funds within the Close Finsbury range."
Chris Garsten, investment adviser to the Close Finsbury Continental European fund, added: "The introduction of the income share class gives investors the opportunity to capitalise on the opportunities available through corporate growth and little growth on P/E discounts.
"The fund has always produced a good yield; as a result of the companies we invest in we are now freeing up this yield to make it available to investors.
"Since we became investment advisers to the fund in April 2002, the annual yield on the portfolio has ranged between 2.2% to 3%. We anticipate the yield on the portfolio to increase, owing to increased shareholder activity in Europe, forcing management changes and a large number of hedge funds looking to invest money in Europe."
Income share class on the Close Finsbury Continental European Equity fund
Expected to yield above 2.2%
Stock focus is on undervalued large cap companies
The forces at play in investment - most obviously, regulatory change, uncertain markets and shifting demographics - are as strong today as they were when Professional Adviser launched its sister magazine Multi-Asset Review in 2017.
Regulator has visited some firms already
Platforms react to Fidelity blocking Income Focus purchases
Chris Hill's letter to Treasury
Cash balance surges