RWC is launching the RWC Global Enhanced Dividend fund for its equity income team.
The new fund, which is a sub-fund of RWC’s Luxembourg Sicav, seeks to offer global equity exposure with a target yield of around 6% plus long-term capital appreciation above the rate of inflation.
The target yield will be achieved through a portfolio of high quality defensive equities which on average yield 3%, bolstered 3% by selling money call options on the majority of the fund’s holdings.
Portfolio manager Ian Lance (pictured) said: 'Given an increased opportunity set available from a global universe allows us to evolve our offering in a number of ways. We are able to flatten the holding structure which reduces stock specific risk and volatility.
'Additionally, the broader remit allows this fund to avoid many of the risks associated with stock and sector concentration associated with UK funds.
'For example in pharmaceuticals where the UK opportunity is limited, a global approach allows us to access companies such as Elli Lilly and Johnson & Johnson which are just as appropriate for what we are looking to achieve.'
RWC's Equity Income trio, who joined in 2010, currently manage $4 billion in funds, and the existing RWC Enhanced Income fund has assets of $560 million.