Roantree and Whittaker launch income fund through Querns AM

Ex-New Star managers Phil Roantree and Stephen Whittaker are to launch an income fund through their new venture, Querns Asset Managers, seeding it with £5m of their own money.

The Querns Income First fund targets an intial yield of about 6.2% for gross shares and 5.6% for net shares, with a degree of capital growth. It will invest primarily in UK equities and sterling corporate bonds, with a about a 60%/40% split between the two asset classes at first, although the pair will have the flexibility to have 20% in bonds and 80% in equities at any point.

The managers says the fund is designed to be tax efficient and low cost, with no initial charge, an annual management fee of 0.75%, and tax elected fund status which allows investors to receive gross income from corporate bonds for Isas and Sipps. The minimum investment is £1,000.

Whittaker says: "With base rates at 0.5% and instant access bank accounts rates only marginally higher, we believe there is a need for investment products providing a good income. We intend to fill that need whilst at the same time creating the potential for capital growth. We strongly believe that the Querns Income First fund can achieve both those aims and as a result, the Querns partners personally intend to invest over £5m in the fund."

At New Star Roantree managed the Sterling Bond fund and Whittaker ran UK Growth. Sterling Bond was in the top quartile of its peer group in nine of the 15 years Roantree ran the fund. UK growth was top quartile in six out of the 13 years of Whittaker's tenure.

At Querns they work alongside chief operating officer Peter Gardner, and sales and marketing partner John Tierney, both formerly of Invesco Perpetual.