Schroders has launched a new version of Income Maximiser, the Schroder Global Property Income Maximiser Fund, which aims to provide a regular income stream and capital growth through exposure to global property.
The new fund, which will open to investors in February 2011, subject to FSA approval, has a target yield of 7%, which will be achieved via a covered call overlay on an actively managed portfolio of high-yielding global property securities and Reits.
"Income generation remains the single largest strategy in the retail investment world and property is a natural asset class for income," said Robin Stoakley, managing director of Schroders' UK Intermediary Business. "We have a market leading reputation in successful management of Global Property Securities, and we are the dominant provider in income generation through our pioneering Maximiser fund range. This new Global Property Income Maximiser is therefore a natural product for us."
The fund will be co-managed by head of structured fund management Thomas See, Jim Rehlaender, the manager of Schroder Global Property Securities Fund, and Al Otero, US Reit specialist with US based global property securities manager European Investors Inc. Rehlaender and Otero will be responsible for stock selection and See will be responsible for the overlay.
The income strategy is similar to Income Maximiser and Asian Income Maximiser, and stock selection will be similar to that used in Schroder's Global Property Securities Fund. The proportion of the fund overwritten will vary with market conditions.
The structured investments team at Schroders has launched US$11bn of funds and currently manages £915m in the Schroder Maximiser strategy.