The Schroder Income Maximiser fund offers, “a very compelling proposition,” for investors looking for income derived from UK equity markets with the added potential for growth, Andy Parsons, advice team manager at The Share Centre has claimed.

Launched in November 2005, the Schroder Income Maximiser Fund is a dynamic fund that generates income on two levels – dividends from underlying holdings and premiums from the option overlay. Neither level is dependant on interest rate levels

And according to Mr Parsons, “Fund manager, Thomas See claims the fund’s flexible approach to generating income means it is fully capable of returning its seven per cent yield target for the fourth consecutive year.”

Thomas See took over the derivative side of the Schroder Income Maximiser Fund in April 2009 following the departure of John Teahan, while Nick Preves and Ian Lance remain responsible for the underlying stock selection.

Mr Parsons adds: “Despite a few management changes over the last year, the Schroder Income Maximiser fund has continued to outperform the IMA UK Equity Income sector.

“In fact, the fund has consecutively been ranked first quartile since it launched in November 2005. On a year-to-date basis, the fund has returned 27.92 per cent with a current yield of 12.32 per cent; the yield is not guaranteed in the future,” he adds.

The fund has been awarded an A rating by Standard & Poor’s and is Mr Parsons says, “suitable for those investors seeking income, but who are willing to accept the risk of a manager who has the flexibility to use derivatives.”

The Share Centre rates the Schroder Income Maximiser fund as a medium risk investment.

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