Schroders has unveiled the details of its new Global Property Income Maximiser, to be launched in February.
The fund has a target yield of 7%, which will be comprised of 4% in dividends from 60-80 property securities and a further 2.5-4 percentage points in premium from selling an overlay of covered call options.
The fund will be managed by property securities managers Jim Rehlaender and Al Otero as well as the maximiser overlay manager Thomas See.
The primary geographical exposure of the fund will be North America with 55%, followed by Hong Kong/China with 13.2% and then Japan with 5.4%.
The fund also holds a 2.4 percentage point underweight in Hong Kong and China owing to an ongoing battle against property speculation. (article continues below)
The North American weighting comes as the country experiences greater liquidity through the quantitative easing programme as well as a strong recent growth in dividends.
Most of the fund will be spread across a diverse range of sectors, with long holding periods for individual stocks.
The maximum quarterly gain on any individual stock against which options are sold is expected to be about 10%, based on current market conditions.