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The fund, which goes live on 7 July, aims to generate a yield of 4.8 per cent.

The portfolio will be split down the middle, with half invested in UK-based funds and the remainder in continental European fund managers.

Manager Colin Fogwill said the firm believed this was the first of such funds to be open to UK investors.

"Advisers wanting a solid European equity income fund are not exactly spoiled for choice, hence our decision to focus on this niche area of the equity income sector," he said.

"With the integration that is taking place within Europe and with the continuing development of the emerging European countries, publicly quoted companies are best placed to cash in on the growth that is taking place, which will in turn increase their share price and their dividend stream."

Initially the portfolio will comprise just six underlying funds, including Newton's £34.1m European Higher Income and Resolution Argonaut's £456.8m European Income funds.

At launch, the fund is expected to have 15 per cent in France, 12 per cent in Italy and 9 per cent in UK stocks. The rest of the portfolio includes exposure to Germany, the Netherlands, Greece, Sweden, Spain, Norway and Switzerland.

Initial charge will be 5.25 per cent, while the annual management charge is 1.5 per cent.

Minimum investment is £3000 lump sum.

For more information, see next week's Investment Adviser (30 June).