Schroders to launch UK Income fund

As with Income Maximiser, the new fund will use derivatives to generate additional income. However, it will also buy put options to create an extra defensive cushion against a fall in share prices. Opening to investors on March 7, UK Income Defensive will comprise an actively managed portfolio of 30 to 50 large and mid cap stocks, paying high, sustainable dividends. Lloyd said the new fund can be compared to a balanced fund in terms of overall volatility. The fund will utilise the same people and processes as Schroder's existing income products. He said: "We'll give up more gain, and ...