InvestmentsMay 8 2013

Jupiter fund targets dividend investors

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ByIona Bain

The new fund is co-managed by Sebastian Radcliffe and Gregory Herbert and aims to tap into rising dividends from companies in both developed and emerging markets, as well as possible capital growth through investing mainly in global equities.

It is particularly concentrated on markets such as the US where income can potentially grow from a low base, and countries like Brazil where company profits could boom and lead to an upturn in dividend payouts.

The managers are also looking to identify companies with falling share prices that could become “dividend aristocrats” of the future, paying out increasing dividends over 25 consecutive years.

- AMC: 1.5 per cent

- Initial charge: up to 5.25 per cent

- Minimum investment: £500 initial sum or £50 monthly

IFA VERDICT: David Higgins, director of London-based Re Financial Planning, said: “We try to construct diversified funds that encompass both income and other types of funds, and this may well be one that we consider.

“But I do have a degree of cynicism about the fund industry, and I’m usually underwhelmed by any new fund launches. Jupiter is a very respected company but I’m not sure this fund can really add anything new to this market.”