Equity Income  

Time launches defensive securities income fund

Time launches defensive securities income fund

Time Investments has launched a Defensive Income Securities fund for advisers looking for an equities-based income fund with lower volatility and more predictable income.

The new fund, which invests in listed real estate, infrastructure and renewable energy companies, as well as selected corporate bonds, targets an annual income return of at least 5 per cent. 

Stephen Daniels, head of investments at Time, said the company was choosing companies that have demonstrated a lower level of volatility than the market average and those that have delivered consistent and predictable dividend yields. 

Where the fund invests in real estate investment trusts (Reits), these must have a low level of gearing, while infrastructure and renewable energy stocks will provide inflation-linked cash distributions, he added.

He said: "We have launched the fund in response to demand from advisers for an equity fund, which can provide an attractive and consistent income return but with low price volatility to help their clients sleep easier at night. 

"Our new fund is in keeping with our investment philosophy and expertise at developing an investment process which applies rigorous screening to deliver against the fund's objectives."

The fund is categorised as a Non-Ucits retail scheme, or Nurs.    

Steve Carlson, managing director of Carlson Wealth Management, said although some clients were looking for lower volatility, it was important to consider the trade-off when it came to reward.

He said: "Infrastructure, in particular, offers much lower returns than it used to and that is partly because it has been overbought."