A new European income fund of funds, to be managed by Sheffield-based Integrity Fund Managers, will launch on 7 July with a high-yield remit.
The new Elite Integrity European Income fund is designed to fill a gap in the equity income sector, according to its manager, Colin Fogwill, the owner of Fogwill & Jones Asset Management, which does business as Integrity.
The new fund will sit in the IMA’s Europe ex-UK sector, “even though the sector is a growth sector and we’re an income fund,” said Fogwill, who notes the IMA has yet to introduce a Europe ex-UK income category.
The fund will make use of the Elite third-party fund management arm of Dorset-based financial services group WAY Fund Managers.
Initially the Elite Integrity European Income fund will invest in just five funds, two of which are based in the UK, and also will be relatively (20%) cash-heavy, Fogwill said.
He is aiming for a 50/50 mix of continental and UK-based funds eventually, though. “We are deliberately using funds people here have never heard of,” he said. “In Europe you have a better chance of achieving outperformance because the market is not as well researched as in the UK.”
Another objective of Fogwill’s fund of funds will be to spread its investments across many different countries, industries and equities, in order to reduce risk, Fogwill said.
The five funds in the starting line-up, which will carry roughly equal weighting, will be Newton European Higher Income; Resolution Argonaut European Income; Schroder European Equity Yield; Parvest European Dividend; and ABN Amro Europe High Dividend B Income.
The initial charge is 5.25% and there is a 1.5% annual management charge.
£300bn of liabilities
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Appointed by FCA and PSR boards