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Ignis and Argonaut launch European income fund
Ignis and joint venture company Argonaut Capital Partners have confirmed plans to launch a European Enhanced Income fund in April, as revealed exclusively by Investment Adviser in January.
The new fund, which will be managed by Argonaut's Oliver Russ, aims to achieve a high income yield of 7 per cent and will use options to generate additional income.
Mr Russ said: "Europe has been a happy hunting ground for yield investors over the past few years and that trend is set to continue.
"The decision to launch an enhanced income fund was born largely from meeting with clients who were seeking an additional level of yield with neutral currency risk. The Enhanced Income Fund gives UK investors this option for the first time.
"Covered call strategies have been successful in the UK, and by adopting a similar approach in Europe, which offers far more opportunities for yield stocks than the UK, we believe we can deliver a very attractive income in addition to the significant benefits of diversifying away from our domestic market."
The fund - investing in a portfolio of 30 to 55 stocks- will also be hedged back to sterling, to neutralise currency risk.
