Lloyd's two-step programme yields big dividends

Schroder Income Maximiser doubles UK equity income sector's yield target using a covered call strategy to generate extra income

The difficulties for fund managers to deliver a solid dividend yield are well documented. Even high-profile income managers such as Neil Woodford and George Luckraft have failed to meet the IMA's basic yield target of 110% of the FTSE All-Share. By contrast, one fund, Schroder Income Maximiser, generated a yield of 7.4% in its first year of trading, and has comfortably met its target of 7% per annum since launch. Manager Richard Lloyd said the investment process is divided into two steps. "The first step is picking a 40-stock equity income portfolio, focusing on growing companies with s...