Miton is to distribute income for the FP Miton Income fund every quarter and is cutting institutional fees for the fund by seven basis points.
The £195m fund, which is managed by Eric Moore, currently distributes income twice a year on 30 November and 31 May. Income will now be distributed on 28 February and 31 August as well, the firm says.
Registration fees for the fund have been removed and replaced with lower costs for transfer agency and accounting services. This has brought down the ongoing charge figure for the institutional share class to 0.88 per cent from 0.95 per cent.
Miton Group head of sales Neil Bridge says: “At Miton we pride ourselves in anticipating and solving our clients’ needs. In the current low yield environment investors are looking for a consistent level of income to meet their requirements.
“This fund has a strong track record in growing its dividend and we believe that increasing the frequency of dividend payments will better serve the demands of clients. The change in OCF is part of our continuous drive to deliver value and transparency to our investors.”
As of today, the FP Miton income fund has returned in line with the IA UK Equity Income sector at 11.6 per cent versus the sector’s 11.7 per cent over a one-year period.