Aim: To generate a rising level of income, together with long-term capital growth, investing primarily in global equities
Minimum investment: Lump sum £500, £100 top-up, £20 monthly
Isa link: Yes
Charges: Initial 5% (reduced to 2% until February 27,2009), annual 1.5%
Fixed share price of 50p for income and accumulation shares or £1 for ‘no trail’ income and accumulation shares
Commission: Initial 3% on lump sums, 1% on switches, and renewal 0.5% except on “no trail” shares
Tel: 0800 085 8677
The global equity income fund aims to achieve a rising level of income, together with capital growth and will typically have 75 stocks in the portfolio, with a range of 60 to 100 holdings.
Capital Trust Financial Management director Bruce MacFarlane says with global interest rates at historic lows investors are seeking income from alternative sources such as equity and bond markets.
He says dramatic fall in global equity prices has driven dividend yields to very attractive levels and while there is likely to be pressure on the sustainability of some of these, there is a wealth of opportunity for talented stock pickers.
MacFarlane says the global equity income fund will be a high conviction fund, unrestricted by geography, sector or market cap. Investing for income from a portfolio of equities outside of the UK is still a relatively underdeveloped area, according to MacFarlane, and he feels this fund should provide a useful addition for advisers wanting to construct a higher yielding portfolio of say between 4 and 5 per cent. He considers the fund to be “very suitable to the current market conditions and requirements.”
MacFarlane says increasing numbers of equity income funds are focusing outside the UK, but he believes the main competition will continue to be UK equity income funds which “remain better known and have no currency risk.”
He finds little to fault about the fund but would prefer to see income paid quarterly rather than half-yearly.
Suitability to market: Good
Investment strategy: Good
Adviser remuneration: Average