Tilney Bestinvest has launched the British Enhanced Income fund, to be run by CIO Gareth Lewis.
The multi-asset fund is projected to have a 4 per cent yield, and will be 80 per cent invested in the UK market. The remaining 20 per cent will be invested globally.
The fund will invest 50 per cent in equities, 34 per cent in fixed income and the remainder in cash, property and absolute return vehicles.
Tilney Bestinvest says the fund is aimed at investors at or nearing retirement.
The fund will have a 0.75 per cent annual management charge, with a minimum investment of £500 on platforms.
Lewis says: “It is clear that more and more people are driven by the income that their investments yield. This is partly due to people living longer and having to think of ways in order to fund their retirement.
“There has been a growing trend for this as the Equity Income Sector is one of the most popular sectors in the market, and indeed the largest proportion of our own Multi Asset Portfolios is within our Income and Income + Growth funds. As such we wanted to have a fund that appeals to those investors with these aims, and believe we have achieved this through the British Enhanced Income fund.”