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IFSL HAREWOOD UK ENHANCED INCOME B - Fund overview

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Overview of IFSL HAREWOOD UK ENHANCED INCOME B

The fund seeks to generate a high annual yield of 8% p.a. paid quarterly, combined with capital growth potential. Yield is generated both from equity dividends received and through BNP Paribas’ daily call writing strategy. The call writing strategy systematically sells short term call options linked to the FTSE 100 Index on a daily basis, generating premiums which are used to both supplement the dividend yield as well as to cushion the Fund’s net asset value from moderate swings in the Index. Capital performance is linked to the FTSE 100 Index.

Standard Initial Charge

1.00% 0.00%

Fund summary

Sector  UK All Companies
Product type  OEIC
Launched  May, 2010
Size  £2m
Yield 9.5%
Charging basis  –
Dividends paid  –
Bid price 96.70p

Fund Charges

Standard Initial charge 1.00%
Initial charge via Bestinvest 0.00%
Additional bid/offer spread 0.00%
Annual management charge 0.75%
Total expense ratio 0.75%
Reduction in yield (10yr) 0.75%

Bestinvest says


No information available.

Portfolio

ifsl harewood uk enhanced income b asset allocation illustration
Allocation Proportion
Equity 100%
High yield bonds
Quality bonds
Property
Commodities
Hedge
Fund cash
ifsl harewood uk enhanced income b equity geographic illustration
Allocation Proportion
UK 100%
Europe
Nth America
Japan
Pacific
Other Equity
ifsl harewood uk enhanced income b equity capitalisation illustration
Allocation Proportion
Large Caps 100%
Mid Caps
Small Caps

Investment process


The fund seeks to generate a high annual fixed yield of 8%p.a. paid quarterly, and invests in the FTSE 100 TR, an index comprising 100 of the largest companies listed in the UK. Every day the market trend is calculated by a 200 day moving average. If the trend is positive, short term 'out of the money' calls (i.e. above current market levels) written at a strike of 102% are sold. If the trend is negative, short term ‘in the money’ calls (i.e. below current market levels) written at a strike of 98% are sold. All options sold have a 3 week time expiration. Options are sold every day on 1/15th of the portfolio and rolled every 3 weeks. For dividend calculation purposes, the dividend will be re-based following every 5p movement in NAV. The investment is fully collaterised with G7 AAA rated bonds to mitigate any credit risk to BNP Paribas (S&P AA+ Rated). Gains are expected to receive CGT treatment.

The value of your investments and the income from them can go down as well as up and you can get back less than you originally invested. Any yields quoted cannot be taken as a reliable indicator of future returns. Before investing in funds please check the specific risk factors on the key features document or refer to our risk warning notice as some funds can be high risk or complex. Prevailing tax rates and relief are dependent on your individual circumstances and are subject to change.

Bestinvest (Brokers) Ltd & Bestinvest (Consultants) Ltd are authorised and regulated by the Financial Services Authority. This site is for UK Investors only

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