By GIDEON MARGO 01/08/2006
The Fund's investment objective is to provide income with potential for capital growth primarily through investment in the equity of UK companies. The fund will also use derivative instruments to generate additional income.
The fund manager may selectively sell short-dated call options over securities held by the fund in order to generate additional income by setting target 'strike' prices at which those securities may be sold in the future.
This is likely to result in lower volatility of total returns relative to more traditional equity income mandates. Consequently the portfolio might be considered appropriate for lower risk clients where income is a priority. The fund is likely to do better relative to the equity income peer group in gently rising or flat markets.
The Fund has been awarded 3 stars.