F&C raises target on High Income fund

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.

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