Alliance Trust plans emerging market equity income fund

Alliance Trust is planning to launch an emerging market equity income fund as part of a trio of income products.

Managing director Edward Troughton says there is a growing demand for income funds as an alternative to traditional pension solutions.

The emerging market equity income fund will accompany a global equity income fund and a fixed-income offering Troughton describes as “a strategic bond product with a twist”. The range is likely to launch by the end of the year. He says there is a gap in the emerging market equity product sector as some funds have been closed.

Troughton says the firm will use the expertise of its fixed-income team, recruited from Scottish Widows Investment Partnership in 2009, to launch the fixed-income product.

Evolve Financial Planning director Jason Witcombe says: “There is always a high demand for emerging market products and they have performed well recently. However, emerging markets are volatile and should never make up more than 10 per cent of a client’s portfolio.”