Schroder Income Maximiser delivers more than 7% income

The Schroder Income Maximiser has delivered 7.3% income in the last year, making this the fourth consecutive year the Fund has exceeded its 7% income target.

Managed by Thomas See, head of Schroders structured fund management, the Fund actively seeks income for investors through a portfolio of higher-yielding UK large cap stocks, selected by Schroders' highly rated UK equity income team Nick Purves and Ian Lance. A covered call option overlay strategy is applied on those stocks to enhance the yield and target a 7% p.a. distributable income.

Thomas See, manager of the Schroder Income Maximiser Fund, said: "Our aim is to offer investors a higher level of income than is generated by a traditional equity income fund, but without the risks normally associated with high yielding investment products. This Fund allows investors to benefit not only from an enhanced income stream, but also potential long-term capital growth.

"As concerns about the economy and corporate profits continue, we believe that the types of companies we favour in Schroder Income Maximiser- those with high yields, cheap valuations, strong balance sheets and resilient earnings streams - when coupled with the overlay strategy, offer investors defensive characteristics as well as attractive opportunities in absolute terms."

Robin Stoakley, Managing Director, Schroders UK Intermediary Business said: "In today's volatile environment, the Schroder Income Maximiser is an attractive option for high income-seeking investors who are also looking for growth potential. The Fund continues to be one of the most innovative funds on the market and with its four year track record has proved to be a great investment for income-seeking investors."