Equity income fund of funds launch from Wise
Private client operation Wise Investments is to launch an equity income fund of funds (Fof) in March...
Private client operation Wise Investments is to launch an equity income fund of funds (Fof) in March.
The fund, called CF Wise Income, is to be managed by Tony Yarrow. Launched under Ucits III rules, the portfolio will contain a mixture of open and closed-ended funds.
Yarrow said the fund, which is aiming to yield around 4%, would hold around 40% in investment trusts and 60% unit trusts.
He said: "There are many investment trusts that are delivering a more attractive yield than unit trusts, Shires Smaller Companies is yielding 6.7% for example. This will enable us to achieve a reasonable yield, while also including higher growth funds to enhance the capital value," he said.
Wise Income will hold a portfolio of around 20-30 underlying funds and will be seeded with £5m of existing clients' money.
Earlier this year, Investment Week reported that Wise Investments, which previously ran broker funds, was launching two Fofs, the CF Wise Active Growth and CF Wise Investments portfolios.
The annual management charge on the retail share class of all Wise funds is 1.65% and the minimum investment £1,000. The initial charge is 4% and intermediaries are offered 3% initial commission and 0.5% trail.
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