BMO Global Asset Management has launched a monthly income share class for the £1.16bn F&C MM Navigator Distribution fund in response to investors’ demand for consistent income.
Managers Rob Burdett and Gary Potter will aim to smooth out the returns from income generating assets by holding back surplus income from the fund’s holdings to top up the monthly income when necessary.
The fund, which invests in over 30 funds with over 2,000 underlying sources of income, currently yields 4.8 per cent per annum.
Rob Thorpe, head of UK Intermediary at BMO Global Asset Management EMEA, says: “The F&C MM Navigator Distribution fund has paid out more income than any other fund in the IA Mixed 20-60% Shares sector since its first income payment in May 2008.
“Income generating assets pay out income at differing intervals, and this fluctuation can impact investors who need regular and more predictable income. Our clients now have the choice to receive income generated by the F&C MM Navigator Distribution fund either monthly or quarterly, with this new share class designed for those investors who prefer to manage their finances on a monthly basis. We are working to ensure the new share class is available on all major platforms as soon as possible.”