Schroders launches Managed Monthly High Income Fund
Schroders announces the launch of the Managed Monthly High Income Fund, a fund-of-funds vehicle investing in a selection of Schroder Maximiser and Schroder Fixed Income unit trusts. The Fund will be available to investors from 21 May 2012.
In an environment where income is difficult to find, investors will draw a monthly distribution from four different income sources: equities, bonds, property securities and income from volatility (via Schroders' existing Maximiser range of funds). The monthly distributions will be approximately uniform, with a potential yield of 5.5% or more per annum.
Investors will gain access to eight of Schroders' active investment strategies including four equity Maximiser funds: Income Maximiser, Asian Income Maximiser, ISF European Dividend Maximiser and Global Property Income Maximiser. On the fixed income side, the exposure will be to Sterling Broad Market, ISF Global High Yield, Strategic Bond and Absolute Return Bond Funds. This diversified approach will see asset allocation at 50:50 across equities and fixed income.
Thomas See, Head of Structured Fund Management and responsible for Schroders' Maximiser fund range, will co-manage the fund along with Gareth Isaac, Senior Fixed Income Portfolio Manager.
Thomas See, Head of Structured Fund Management at Schroders and co-manager of the Managed Monthly High Income Fund said: "This is a fund that pays a higher monthly yield from four well-diversified sources of income, several asset classes and multiple geographies, despite a difficult yield environment. By tapping into eight of Schroders' actively managed investment strategies, we can help reduce the risk of relying on the performance of any single fund or strategy, while creating a diversified product with less volatility than a pure equity investment."
Robin Stoakley, Managing Director of UK Intermediary at Schroders, said: "Given interest rates remain low and returns from cash after inflation can be negative, it's difficult to find credible investments paying an attractive yield. The Fund offers investors low volatility, an attractive monthly income stream and the opportunity of some capital growth over the long term. "
All annual management charges for the individual underlying funds will be rebated back to the fund-of-funds; therefore only one single layer of fees will apply. The fund will sit in the IMA Mixed Investment 20-60% Shares sector and will be available in two share classes, the clean fee Z class as well as the A class. The annual management charges for the A and Z share classes will be 1.25% and 0.625% respectively.
Schroders' Structured Fund Management Team, headed by Thomas See, manages over £1.4bn in Maximiser income enhancement strategies.