Aberdeen Asset Managers has put its faith in the strength of the US economy by introducing the American Monthly Income Trust.
This Jersey-based split capital investment trust is likely to attract offshore clients who are looking for a high level of income.
There are three share classes geared ordinary income shares, annuity income shares and zero dividend preference shares. The trust will invest in US large cap stocks, fixed interest securities and high-yielding stocks.
The US economy has remained strong for some time and Aberdeen believes this success is likely to continue. It intends to pick up valuable stocks at relatively low prices.
Potential investors should also be wary of the possible effects of the strong dollar. The Bank of england says the dollar is at its highest level aginst the pound since April 19, 1994. If it falls in value, investors would be exposed to currency fluctuation, which also tends to unsettle economies.
According to Standard and Poors the Aberdeen preferred income trust is ranked 7 out of 18 funds, based on £1,000 invested on a mid-to-mid basis with net income reinvested over one year to September 26, 2000.