Equity income boosted with new fund from Insight

Insight Investment, the UK-based fund manager, has launched a new equity fund with a derivative overlay to boost returns. The Equity Income Booster Fund targets an annual yield of 8%, using a call option overlay to help achieve its return and reduce volatility.

The fund invests principally in UK equities and equity-related securities, although up to 20% may be invested in securities outside the UK. It will be dual-managed by two different groups within Insight. The call option overlay component will be managed by the structured solutions team, headed up by Richard Lloyd. Lloyd has been with Insight's Financial Products Group since June 2008, leaving the structured investments business at Schroders to take the role.

The UK equity team, meanwhile, will manage the equity portfolio of the fund, under the charge of Tim Rees, who is Insight's principal equity income manager and who will be responsible for stock selection.

The fund is targeted at investors who want a higher income stream combined with a more defensive profile than traditional equity income funds, says Gordon Phillips, head of business development at Insight Investment.

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