The fund seeks to achieve a high level of income and long-term capital growth by investing in continental European equities and bonds. At launch the fund has a target yield of 6 per cent.
Heads of fixed income Paul Causer and Paul Read will manage the bond element of the fund while the firm’s European equity income specialist Katharina Hoyland will manage the equity side.
Read says: “We launch this fund in exciting times. While conditions since last summer have undoubtedly presented a challenge, the sharp and indiscriminate widening of credit spreads has left credit markets in a position in which they are now beginning to offer us compelling value. The greater differentiation between the pricing of different credit risks, which we are now experiencing, is something we welcome. I believe that we have a great opportunity to add yield to portfolios, providing a strong income flow, and from current levels, capital growth over the long term.”
Hoyland says: “Continental Europe is an attractive hunting ground for equity income investors. Companies there now offer dividend yields and payout ratios approaching those traditionally found in the UK market. At the same time, Europe provides a diversified range of investment opportunities at interesting valuations.”
The fund has a £500 lump sum minimum investment with £100 top up and £20 monthly savings. It has a full initial charge of 5 per cent and an annual management charge of 1.25 per cent for accumulation or income and 0.75 per cent for accumulation or income without trail.