Active from 17 April, the new share class will afford income-seeking investors access to yield generated by Neptune’s portfolio of UK investments across the cap spectrum.
The launch targets investors that are looking to diversify their income stream beyond instruments within the FTSE 100, which Neptune believes poses risk stemming over-concentration on a small group of mega-cap stocks.
In a bid to full capitalise on the distribution stream, fees on the share class will be taken from the fund’s capital growth. Neptune confirmed that the original accumulation share class will remain in its current form.
Mark Martin, manager of the funds, said: ““Whilst the objective of the UK Mid Cap Fund is not specifically to generate an income, many of the companies that we invest in produce healthy yields – a welcome side-effect of the quality businesses that we seek to invest in.”
Since its inception in December 2008, the UK Mid Cap Fund has generated a return of 300.75% against a peer group average of 226.77%, investing in under-valued companies while utilising a top-down approach.
