The Managed Monthly High Income Fund, which will be available to investors from 21 May 2012, is a fund-of-funds vehicle that will invest in a selection of Schroder and Schroder Fixed Income unit trusts.
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Schroders stated that the fund will enable investors to draw a monthly distribution from four different income sources, being, equities, bonds, property securities and income from volatility.
The monthly distributions are expected to be approximately uniform, having a potential yield of 5.5% or more per annum.
Additionally, investors will also be able to access eight of Schroders’ active investment strategies that includes four equity Maximiser funds; Income Maximiser, Asian Income Maximiser, ISF European Dividend Maximiser and Global Property Income Maximiser.
And on the fixed income side, exposure will be to Sterling Bond Market, ISF Global High Yield, Strategic Bond and Absolute Return Bond Funds.
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By GlobalDataThere will be asset allocation at 50:50 across equities and fixed income for the diversified approach.
The fund will be co-managed by Thomas See, head of Structured Fund Management and responsible for Schroders’ Maximiser fund range and Gareth Isaac, senior Fixed Income Portfolio manager.
Regarding the new fund, Robin Stoakley, MD of UK Intermediary at Schroders said "Given interest rates remain low and returns from cash after inflation can be negative, it’s difficult to find credible investments paying an attractive yield. The Fund offers investors low volatility, an attractive monthly income stream and the opportunity of some capital growth over the long term."
