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Schroders aims for income maximiser hat-trick

Schroders managing director of UK intermediary business Robin Stoakley says the company is looking at launching a third income maximiser fund, with the US and Europe two potential targets.

Schroders currently has the £611m UK income maximiser, launched in November 2005, and its Asian maximiser is pending.

Head of structured fund management Thomas See manages the UK fund and is set to co-manage the Asian fund with Richard Sennitt. They target a 7 per cent yield through higher yielding stocks and a covered-call overlay.

Stoakley says the firm will soon have two income maximisers paying quarterly on different dates, meaning a third component filling in the gaps so that an investor could receive monthly income which would be “very attractive”.

Stoakley says: “Japan is an area where it is difficult to get equ-ity yield out, while emerging markets may offer equity yield but you would have trouble with the covered call strategy.

“This leaves you with a combination of continental Europe and the US, which offers attractive yield stocks and the ability to offer covered calls. We could also go down the sector-specific route, such as property securities. It is all a work in progress.”

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  1. I am afraid I believe Mr. See and their team needs to focus more on the current state of the UK fund prior to considering opening up new ventures. As I type the Schroder Income Maximiser Accumulation total returns have dropped some c.8% in the past week and recovered far less successfully than others in the sector. I would certainly be cautious on launches at this time of market uncertainty.

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