Schroders maximises income in turbulent times

Schroder Income Maximiser has delivered its income target of 7% for the second year running. In its first year, Schroder Income Maximiser delivered an income payment of 7.4%, followed by 7.3% in its second year.

Investors looking for a higher income from UK equities will find that the current annual dividend yield on the FTSE 100 is 3.53%. Schroder Income Maximiser targets a stable high gross yield of 7% for investors by combining an actively managed portfolio of higher yielding UK stocks with a covered call option overlay strategy to maximise income. The Fund also offers investors the potential to benefit from long-term capital and income growth.

Richard Lloyd, manager, Schroder Income Maximiser said: “As concerns about the economy and corporate profits continue, we are confident that the types of companies we favour in Schroder Income Maximiser– those with high yields, cheap valuations, strong balance sheets and resilient earnings streams – offer investors defensive characteristics as well as attractive opportunities in absolute terms. By adding an option overlay to this approach, we offer investors an additional layer of defensiveness whilst delivering a regular target income of 7% plus per year.”

Robin Stoakley, Managing Director of Schroders’ UK Retail Business, said: “Schroder Income Maximiser represents a fantastic option for investors as market uncertainty persists. Investors can achieve a high and growing income, with the potential for capital growth, in a package that offers lower volatility than traditional equity funds. Schroder Income Maximiser has over £250m invested and we believe it is one of the most innovative funds available to the IFA market.”