F&C has amended the investment remit of the £228m F&C High Income fund, raising the annual target income to 5%.
Previously, the target annual income was the Bank of England base rate plus 2%, which today would equate to an income target of 2.5%.
According to F&C, the change is a temporary move, which will be reassessed towards the end of this year. It says that when interest rates start to rise again, the target of the base rate plus 2% will be reintroduced.
“Depending on the outcome of the review … and market conditions, the change back to [this rate]… could happen prior to UK interest rates hitting 3%, though this is not our current intention,” said an F&C statement.
F&C yields the benefit of experience