The UK equity income booster invests primarily in UK equity and equity related securities and has a systematic call option overwriting programme designed to boost income and reduce volatility. Up to 20 per cent of the fund may be invested in non-UK equities.
The fund will be jointly managed by Tim Rees and Richard Lloyd, pending FSA approval and targets an annual yield of 8 per cent.
Lloyd was previously co-head of structured products at Schroders and played an integral role in the creation of the firm’s income maximiser fund before Joining Insight in July last year.
Insight Investment head of business development Gordon Phillips says: “With its dual fund management approach, the Insight UK equity income booster is a compelling income solution for investors who are comfortable with equity risk but seek a higher income stream coupled with more defensive characteristics than traditional equity income funds.”