14 Sep 2010
RWC Partners has announced the details for the launch of its new range of equity income funds– RWC Income Opportunities Fund and RWC Enhanced Income Fund. The equity income team of Nick Purves, Ian Lance and John Teahan is well placed to provide a new offering in the UK Income market. Purves and Lance have recently had the endorsement of St James’ Place with the news last week that SJP are re-appointing them as managers of the £600m SJP Equity Income Fund.
RWC Income Opportunities will be launched on September 29th 2010. The fund will be a long-only UK Equity-centric income fund but will have the flexibility to invest a proportion of its assets outside the UK and may use corporate bonds and cash to enhance the risk/return profile of the fund.
RWC Enhanced Income will be launched on October 13th 2010. The fund will combine the stock selection of Purves and Lance but the yield to investors will be enhanced by a covered call writing program which Teahan will manage to target an ongoing 7% yield. Taken together the strategy will provide investors with a higher yield without the need to invest in speculative stocks or other instruments.
Both funds will be Sterling denominated and will hedge local currency investments. The funds will carry a 1.5% annual management charge for the A share class or a 0.8% charge in the institutional B share class. The funds will aim to distribute a quarterly dividend.
Commenting on the announcement, Peter Harrison, Chief Executive Officer, RWC Partners, said: “It is rare to find fund managers of such genuine talent as Nick and Ian. They are managers of the highest quality who have demonstrated an extremely long and consistent track record. I have every confidence in their ability to build on this into the future.
RWC Income Opportunities will be launched on September 29th 2010. The fund will be a long-only UK Equity-centric income fund but will have the flexibility to invest a proportion of its assets outside the UK and may use corporate bonds and cash to enhance the risk/return profile of the fund.
RWC Enhanced Income will be launched on October 13th 2010. The fund will combine the stock selection of Purves and Lance but the yield to investors will be enhanced by a covered call writing program which Teahan will manage to target an ongoing 7% yield. Taken together the strategy will provide investors with a higher yield without the need to invest in speculative stocks or other instruments.
Both funds will be Sterling denominated and will hedge local currency investments. The funds will carry a 1.5% annual management charge for the A share class or a 0.8% charge in the institutional B share class. The funds will aim to distribute a quarterly dividend.
Commenting on the announcement, Peter Harrison, Chief Executive Officer, RWC Partners, said: “It is rare to find fund managers of such genuine talent as Nick and Ian. They are managers of the highest quality who have demonstrated an extremely long and consistent track record. I have every confidence in their ability to build on this into the future.
“The RWC Enhanced Income Fund will combine both the strong stock picking credentials of Purves and Lance, and proven expertise of Teahan in enhancing the income stream through call writing. This is a proven combination which will produce a portfolio with very attractive characteristics.
“High yielding equities currently look anomalously cheap relative to other assets. It is rewarding to be able to combine an offering of strong managers, good investment thesis and opportunistic market timing.
“Equity Income is a hugely popular sector in the UK market. The team’s uncompromising philosophical bias towards buying unfashionable value stocks underpins its historical performance and ability to generate consistent high income for investors.”
