The Schroders Managed Monthly High Income Fund will be available to investors on 21 May, and will be co-managed by Gareth Isaac, senior fixed income portfolio manager, and Thomas See, head of the structured fund management team that runs £1.42bn in assets.
Investors will be able to take a monthly income from investments in equities, bonds and property securities as well as through volatility from its Maximiser fund range. The target income is 5.5% per year.
The income will be generated through investment in four equity Maximiser funds (Income, Asian Income, ISF European Dividend and Global Property Income Maximisers) as well as four fixed income funds (Sterling Broad Market, ISF Global High Yield, Strategic Bond and Absolute Return Bond funds). The asset allocation will be evenly split across equities and bonds.
There will be a single layer of annual management charges with the AMC for the underlying funds being rebated back to the fund of funds.
It will sit in the IMA Mixed Investment 20-60% Shares sector and be available in two share classes, the clean fee Z class (with an AMC of 0.65%) as well as the A class (1.25% AMC).
