The Luxembourg listed RWC Global Enhanced Dividend Fund will offer investors global equity exposure, with a targeted yield of around 6%, as well as long term capital appreciation.
Additionally, RWC said the fund aims to have a total return consisting of the income and the capital gain with a volatility of less than the equity markets.
The fund’s yield will be achieved through holding a portfolio of high quality defensive equities which on average yield 3%. This yield is then bolstered by an additional 3% by selling out of the money call options on the majority of the fund’s holdings.
RWC said the fund has attracted “significant support” at launch and is expected to reach more than $125m in the next few weeks.
In addition to Purves and Lance, John Teahan has also been named as a co-portfolio manager of the fund. The equity team already manages in excess of $4bn in equity income funds.
On the launch, RWC chief executive Dan Mannix said: “Although the existing Enhanced Income Fund has mainly seen flows from the UK we expect the newly launched RWC Global Enhanced Dividend Fund to attract significant interest from our European clients. The hunt for yield is a global problem and the strategies appeal to a wide range of private client intermediaries and institutions.”
The existing RWC Enhanced Income Fund was launched in October 2010 shortly after Purves and Lance joined the company from Schroders and has so far built up fund assets of $560m.
