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Insight looks East to boost income

Insight Investment’s diversified high income fund aims to boost its dividend by investing in derivatives and Asian real estate investment trusts which it says have higher yields than available in the West.

The multi-asset multi-manager fund was created by restructuring the wealthbuilder high income fund. The wealthbuilder growth fund was also restructured and renamed as the diversified dynamic return fund.

Both funds are based on the multi-asset multi-manager approach developed for Insight’s diversified target return fund launched in February 2005. The portfolio reflects the idea that diversifying across asset classes reduces risk but, two years on, Insight felt it needed more multi-asset funds to reflect different objectives and risk profiles.

Insight diversified high income aims for a high monthly income with the potential for capital growth with a similar risk profile to the diversified target return fund.

As well as boosting income through Asian Reits, it will use call options to produce an income. Diversified dynamic return aims for capital growth by investing in the same range of asset classes as diversified target return but will be more volatile as its targeted returns are higher.

Co-head of multi-manager Patrick Armstrong says “Retail investors traditionally, looked to UK equity income and UK corporate bonds for income but you do not get much diversification from one country and two asset classes. Diversified high income offers a diverse set of asset classes and regions.”

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