Schroder Income Maximiser delivers 7% income in first year

Schroder Income Maximiser has delivered 7.4% income in its first year since launch, exceeding its annual income target of up to 7%.

To celebrate the Fund’s success in its first year, Schroders is offering a special discount on the initial charge until 5 April 2007.

Schroder Income Maximiser, launched in November 2005, has delivered a yield of 7.4% from an actively managed portfolio of higher yielding UK equities combined with a covered call option overlay strategy on those stocks to enhance the yield.

Richard Lloyd, manager of Schroder Income Maximiser said: “Schroder Income Maximiser has comfortably exceeded the income target we set out when we launched the fund a year ago. The equity market gave us many different conditions last year which allowed us to demonstrate the Fund’s risk control whilst delivering an attractive combination of high income and capital growth.”

Robin Stoakley, Managing Director, Schroders’ UK Retail business, said: “Schroders has the in-house expertise beyond the scope of most investment houses to offer this innovative fund to retail investors. Richard has steered the fund to a solid start in 2006 and inflows into Schroder Income Maximiser in the first year have exceeded our expectations. I believe that 2007 will be another good year for Schroder Income Maximiser with the strong defensive nature of a UK equity income portfolio and the cushioning effect of a solid income stream in challenging markets.”

The annual yield is achieved from a combination of dividends from the stocks held, circa 3.5 %, and from the premium income obtained from selling covered call options on the stocks, circa 2.5 to 4.0 %. Investors in the fund have the potential to benefit from capital growth, as well as income growth.