Aberdeen Asset Management is hoping its Worldwide high income plan will be attractive to older investors.
This investment trust is available as in individual savings account and invests in eight other investment trusts managed by Aberdeen and its subsidiary company, Murry Johnstone.
The investment split offers investors a great deal of geographical diversity as it covers the US, Europe and Japan. It also contains exposure to global technology through the technology and income trust. Each investment trust consists of around 40 to 60 stocks.
The plan is primarily designed to produce income at nine per cent a year, which is paid on a monthly basis, but it will combine this with the potential for capital growth.
Lower interest rates from building society accounts and lower yields from corporate bond funds may prompt income seekers who are nearing retirement to consider this investment trust. Some of the areas it invests in can be volatile, particularly Japan and technology, and investors should be aware of this. However, these areas are essential in the generation of higher yields.
Out of the eight investment trusts that the Worldwide high income plan invests in, two trusts have Standard & Poor's star rankings. Murray income and Murray international both have S&P three star rankings as at March 2, 2001.