IMS Select Income fund expects 3.46% yields

The IMS Select Income fund of funds, an Oeic launched last week, invests in a diversified portfolio of 11 authorised or recognised funds. This includes such funds as Tineke Frikkee’s Newton Higher Income and George Luckraft’s Framlington Equity Income.

With an estimated yield of 3.46%, the portfolio is weighted towards the UK in line with its benchmark, but, according to IMS, it will not be restricted by any other geographical, industrial or economic considerations.

The fund will be managed by Giles Gilbertson, Paul Kim and Richard Timberlake, with Gilbertson handling fixed interest funds and Kim focusing on equity funds. The managers aim to combine investment style analysis with asset allocation when building the fund portfolio. Funds are chosen on the basis of consistent performance and quality assessment.

According to Gilbertson: “In developing the IMS Select Income fund we are aiming to offer investors a pragmatic balance between sustainable yield and capital appreciation across a fully diversified raft of holdings.”

Minimum investment in the fund has been set at £5,000 retail, £500 monthly or £100,000 institutional. IMS is also waiving the initial 5% charge until December 10, 2004. The fund will carry a commission of up to 3% on the retail class, with annual charges amounting to 1.5% for retail and 1.0% for the institutional class.

In addition to the Select Income fund, IMS also manages two S&P AA-rated retail funds of funds, the IMS Select fund, launched in 1999 and the two-year-old IMS Global Select fund.