Fidelity launches Global Enhanced Income fund

Fidelity is to launch the Global Enhanced Income fund next month for Dan Roberts, targeting a yield of 5 per cent.

Mr Roberts will run the fund using the same 52 stocks that make up his existing Global Dividend fund, which has a yield of 3.2 per cent, and uses a covered call strategy to boost the yield.

The Global Dividend fund has risen 20.3 per cent in the past year, while the Global Equity Income sector has risen by 18.7 per cent according to data from FE Analytics.

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Investment Adviser revealed in February last year that Fidelity had started to test interest in an enhanced version of the Global Dividend fund.