High yield the Holy Grail for European equity income fund of funds

A European income fund of funds, the Elite Integrity European Income Fund designed to fill a key gap in the equity income sector, is due to launch on 7 July 2008 with a high yield remit. The Fund will have a 14 day initial offer period where investors can take advantage of receiving a fixed price of 100p.

Managed by Colin Fogwill of Integrity Fund Managers (a trading name of Fogwill & Jones Asset Management Limited) and utilising Elite, the third party fund management arm of WAY Fund Managers as the ACD, the fund of funds incorporates a 50/50 mix of continental European fund managers and UK-based funds when fully invested.

“European fund managers have longer track records in managing equity income funds in Europe than their UK counterparts, which will give the fund a unique advantage over other European Equity Income Funds, and we believe that this is the first Fund of Funds of its kind available to UK investors,” said manager Colin Fogwill.

Of the 100 or so equity income funds currently available, nine out of ten are in the UK Equity Income sector:

“Advisers wanting a solid European equity income fund are not exactly spoiled for choice, hence our decision to focus on this niche area of the equity income sector,” he added.

“With the integration that is taking place within Europe and with the continuing development of the Emerging European countries, publicly quoted companies are best placed to cash in on the growth that is taking place, which will in turn increase their share price and their dividend stream.”

The fund is pitched at the medium risk investor profile, and the yield is anticipated to be around 4.8 per cent (gross) with excellent growth potential.

“Initially there will be a high weighting in cash due to the current market conditions, as permitted by NURs rules, but this will allow us to be nimble and to take advantage of investment opportunities as and when they arise,” Fogwill said.