Polar Capital unveils European Income fund for Davis

Polar Capital has launched a European Income fund for ex-Threadneedle manager Nick Davis, who joined the group last month.

The fund will target an overall yield of 10% above the MSCI Europe Daily Total Return Net Euro benchmark index. The manager will employ a bottom-up stock-picking approach, investing in around 30-50 mid- to large-cap Pan-European stocks, typically with a market cap of between €1bn and €3bn. The portfolio will be divided into three portions: stocks with below-index dividend yields expected to see capital appreciation; classic buy and hold positions; stocks which yield more than the index, but with lower growth. Davis said: "Our investment approach is based on the main inefficiency in...