- Fund seeks to deliver a predictable, attractive income stream with low volatility
- Fund targets an income return of 5%pa plus capital growth
- Fund seeded with TIME’s own portfolio of £35 million
Today, 19 February, TIME Investments, the leading property and infrastructure investment firm, has launched its new TIME:Defensive Income Securities fund. The fund has been developed in response to demand from advisers and their clients for an alternative, liquid, equities-based income fund with lower volatility and more predictable income than traditional equity income funds.
The fund targets an annual income return of at least 5% and capital growth over the long-term from a portfolio of high quality, low volatility investments in listed real estate, infrastructure and renewable energy companies, and selected corporate bonds of asset backed companies.
The fund uses a passive investment strategy based on a sophisticated stock selection process which involves the use of various rigorous screening criteria. Based on these filters, a diversified portfolio of income-producing securities is acquired on a “buy and hold” basis.
To be included in the portfolio, equity holdings need to have demonstrated a lower level of volatility than the market average and to have delivered consistent and predictable dividend yields. Where the fund invests in Real Estate Investment Trusts (REITS), these must have a low level of gearing. Infrastructure and renewable energy stocks will provide inflation-linked cash distributions.
The investment strategy seeks to remove the subjectivity of decision-making and emotional bias which can affect the investment decisions made by active managers. The result is a fund which aims to deliver a consistent, secure income and lower volatility for investors.
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Stephen Daniels, Head of Investments at TIME, said: “We have launched the fund in response to demand from advisers for an equity fund which can provide an attractive and consistent income return, but with low price volatility to help their clients sleep easier at night. Our new fund is in keeping with our investment philosophy and expertise at developing an investment process which applies rigorous screening to deliver against the fund’s objectives.”
TIME Investments has extensive experience in property and infrastructure investing. The business already runs a range of long income invested OEIC and institutional funds with a 24-year track record. TIME is also well known for its infrastructure and renewable energy experience in the tax efficient market with investments including wind, solar, hydro-electric, biomass and commercial forestry.
The TIME:Defensive Income Securities fund is categorised as a Non-UCITS Retail Scheme (“NURS”) and offers investors daily liquidity.
For further information on TIME Investments and the fund, please visit www.time-investments.com