Investments  

LAUNCH PAD: Investments

It is expected to raise $125m (£74.05m) in May and offers global equity exposure, a potential yield of around 6 per cent, long-term capital appreciation above the rate of inflation and lower volatility than the MSCI world index.

Dan Mannix, chief executive of RWC, said: “We are seeing increasing demand for income and low-volatility-equity-based funds.

“Investors are prepared to sacrifice some of the short-term upside in equity markets to increase the probability that their income objectives can be met on a persistent basis.”

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Key features

Portfolio of “high-quality defensive” equities, which yield 3 per cent on average.

Additional 3 per cent yield by selling out of the money call options on the majority of the fund’s holdings.

Luxembourg Sicav under Ucits IV offering daily liquidity.

Fund will hold cash when unable to find a sufficient number of companies meeting its investment criteria that are also available at low starting valuations.

Adviser verdict

Alan Solomons, director, Alpha Investments & Financial Planning, London

“I can see a lot of sense in going for dividend income beyond the UK. There are more firms in what were emerging market economies now paying dividends where the yields are possibly higher than they are in the UK. Most advisers are trying to get a balanced portfolio across the world so this might be suitable for some investors.”