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Wise man says income can be found in East

Wise Investment will introduce an Oeic fund of funds on October 1 as a one-stop shop for investors looking for income.

The CF Wise income fund will provide access to a wide range of income-producing assets including equities, fixed interest, property and cash.

The fund is expected to be made available on the Selestia platform soon after launch, alongside Wise’s two exist- ing funds.

Wise decided on a multi-asset class portfolio for the new fund because this provides greater flexibility.

Each asset class has a different cycle, with the relative yields changing over time, so asset allocation within the fund will reflect these movements.

Fund manager Tony Yarrow will buy at the bottom of the cycle when the income yield is at its highest, then sell at or near the top when the yield is at its lowest.

Yarrow believes market conditions may be tricky and volatile over the next few years, which will not be good for buy-and-hold investors.

Within the new fund, he plans to take advantage of developments in the Far East. Companies in the region have become cash-rich through exp- orting to the West and are also becoming keener to please their shareholders.

In Yarrow’s view, these factors will provide Asian companies with the motive and the opportunity to pay signifi- cant dividends.

Yarrow says: “Our two existing Oeic funds, CF Wise inv- estment and CF Wise active growth, are going to be available on the Selestia platform by the end of July but the timescale is in Selestia’s hands. Once the new fund is successfully launched, we will no doubt be talking to Selestia about putting it on the platform, too.”

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