Octopus has launched a UK multi cap income fund on the back of "sustained" investor demand.
The Octopus UK Multi Cap Income fund will be managed by Chris McVey and the wider UK equity team at Octopus. Mr McVey has managed UK small and mid cap equities for 20 years.
The fund will have a target yield of 4 per cent and will pay dividends on a quarterly basis. Its ongoing charge is 0.45 per cent.
Mr McVey said: "Small and mid-size companies consistently outperform their larger peers, while also demonstrating faster growth in earnings and dividends.
"By harnessing this growth potential and blending it with exposure to larger, more established businesses, we believe we can offer investors an attractive and more diversified route to income, while providing scope for better than market capital performance.
"Octopus’ long-established expertise in finding attractive businesses with strong fundamentals makes us uniquely placed to create growth and income for our investors through this strategy."
Patrick Connolly, head of communications at advice firm Chase De Vere, said: "There is an ongoing demand for income-generating products from investors and Octopus is correct about the importance of diversification.
"This diversification should be achieved by asset class, sector, geographically and by market cap. While this new launch can help investors to diversify by market cap, there are already a number of good quality UK Equity Income funds available, including some that give exposure to smaller companies.
"Advisers will therefore probably want to see how this fund performs before considering investing."