Income Support Available
From CF OLIM UK Equity Trust
The current investment climate offers investors some significant headwinds:
- Interest rates on cash are close to zero.
- Gilt yields are modest and vulnerable to a reversal of quantitative easing.
- Corporate bond yields are only slightly higher than gilts. Like gilts they offer no protection from inflation.
By contrast some parts of the UK equity market offer exciting opportunities for astute investors. For several years now, higher yielding shares have underperformed the broader UK market. In 2010, the FTSE 350 Higher Yield Index gave a total return 6 percentage points behind the FTSE 350. This follows 10 percentage points of underperformance in 2009. The average yield on the FTSE 350 Higher Yield Index is 4.2%. This is well above the 2.6% offered by the broader FTSE 350 index (31/03/11).
The CF OLIM UK Equity Trust is well placed to take advantage of this opportunity, with its focus on investing in high quality, income-generating companies. In this way the fund is structured to deliver strong total returns for investors through both capital growth and dividend income. The fund is ranked in the top quartile of UK equity income funds (IMA Sector) since inception in 2002.
Fund Details
Our unit trust aims to achieve long term capital growth together with a yield at least 10% above that of the FTSE All Share before expenses. The minimum investment is £1000. The fund has no initial charge and no exit or redemption penalties. The annual management charge (and total expense ratio) is 1.5%, falling to 1.25% on assets above £10m. Investments can be made in the fund through either income or accumulation units.
Further details can be found in the fund prospectus and quarterly reports, which can be found on our Literature page
For more details see our How to Invest page.
For more information on our Investment Approach please see our corporate brochure (PDF 865kb).