Geoff Kirk: Anatomy of an enhanced income fund

Generating an income from an investment portfolio has become ever more challenging over the course of the last decade. Central banks have held interest rates very low and bond yields have fallen dramatically, forcing people to invest in riskier assets to earn the same level of income. In contrast, dividend yields on equities have remained around their long-term averages, providing a sustainable source of income for those willing to take on the risks of investing in equities. The UK equity market is currently yielding around 4% and yet, for many investors, that is still not enough. So ...