Targeting a gross yield of 3.5% in the first year and average dividend growth of 10% per annum, the fund will invest in around 75 companies in the FTSE 250, FTSE Small Cap, FTSE Fledgling and FTSE AIM indices, as well as some smaller companies in the FTSE 100.
Hargreave, who runs the £400m Marlborough Special Situations Fund, will co-manage the new offering with Siddarth Chand Lall; the pair will be backed by the same six-strong investment team that work on the special situations fund.
“We have more than 700 companies to select from and among them will be those that as they go from strength to strength will pay an attractive dividend that increases year on year as well as providing strong capital growth,” says Hargreave.
“The skill lies in identifying those companies at an early stage, which maximises the income yield and the potential for capital growth. It is a specialist field but we have a team with the necessary size, expertise and experience. What that represents for investors is a pretty compelling proposition.”
The fund aims to provide investors with an income more than 10% greater than the FTSE All-Share gross dividend yield and will be benchmarked against the FTSE All-Share Index gross Dividend Yield and the IMA UK Equity Income Sector.
