Neptune‘s UK mid cap to offer income option

Neptune Investment Management has launched a distributing share class on its UK Mid Cap fund.

Neptune said the fund would remain focused on generating capital growth but that the new share class would allow investors who also sought an income from UK mid caps.

Fees for the new income share class are to be deducted from capital growth, for investors wishing to retain a focus on capital growth, the existing accumulation share classes remain unchanged.

The fund was launched in December 2008 and returned 300.75 per cent compared with the FTSE 250 Index gain of 226.77 per cent and is ranked 4th out of 228 competitors in the Investment Association peer group.

Mark Martin, manager of the Neptune UK Mid Cap fund said: “Many of the companies that we invest in produce healthy yields – a welcome side-effect of the quality businesses that we seek to invest in.”

A new income share class will also be available on the multi-cap Neptune UK Opportunities Fund. The Fund will benefit from the high yielding stocks within the FTSE 100 as well as the income opportunities Mark is finding in the UK Mid Cap universe.

Adviser view

Paul Lindfield, director of wealth management at Sedulo Wealth Management in Manchester: “We are seeing a raft of products aimed at chasing income. With equities overvalued and bonds overpriced investors looking for ways of eeking out of an income are being targeted by fund managers.”