Money News
Investment manager, Invesco Perpetual, has announced the launch of the Invesco Perpetual European High Income Fund - the fund seeking to achieve a high level of income and long term capital growth by investing in continental European equities and bonds.
At launch the fund has a target yield of 6% and will be managed by Paul Causer and Paul Read, co-heads of fixed income at Invesco Perpetual, and European equity income specialist, Katharina Hoyland, manager of the Invesco Perpetual European Equity Income Fund.
Read says that while conditions since last summer have undoubtedly presented a challenge, the sharp and indiscriminate widening of credit spreads has left credit markets in a position in which they are now beginning to offer compelling value.
"The greater differentiation between the pricing of different credit risks, which we are now experiencing, is something we welcome. I believe that we have a great opportunity to add yield to portfolios, providing a strong income flow, and from current levels, capital growth over the long term," Read adds.
Meanwhile, Hoyland argues that Continental Europe is an attractive hunting ground for equity income investors. Companies there now offer dividend yields and payout ratios approaching those traditionally found in the UK market. At the same time, Europe offers a diversified range of investment opportunities at interesting valuations.
At launch, there will be a neutral fund allocation equally split between European equities and bonds.
Minimum investment is £500 lump sum, £100 top up, £20 monthly savings. Charges are 5% initial, 1.25% annual.
01 May 2008 © Moneyextra.com
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