Schroders has announced that its Income Maximiser Fund has exceeded its target yield of seven per cent for the fourth consecutive year.
In the last year, the Schroder Income Maximiser Fund, which actively seeks to provide an income through a portfolio of higher-yielding UK large cap stocks, has achieved a yield of 7.3 per cent.
Commenting, Thomas See, head of Schroders structured fund management and manager of the Income Maximiser Fund said that the fund's aim is to offer investors a higher level of income than can be generated by other traditional equity income funds, but "without the risks normally associated with high yielding investment products".
"This Fund allows investors to benefit not only from an enhanced income stream, but also potential long-term capital growth.
"As concerns about the economy and corporate profits continue, we believe that the types of companies we favour in Schroder Income Maximiser - those with high yields, cheap valuations, strong balance sheets and resilient earnings streams – when coupled with the overlay strategy, offer investors defensive characteristics as well as attractive opportunities in absolute terms," he said.
Meanwhile, Robin Stoakley, managing director at Schroders UK Intermediary Business, suggests that the Income Maximiser Fund is an "attractive option" for high income-seeking investors who also want an investment with growth potential in "today's volatile environment".
"The Fund continues to be one of the most innovative funds on the market and with its four year track record has proved to be a great investment for income-seeking investors," he added.
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