Cavendish Asset Management has launched two UK equity funds which aim to appeal to more defensive investors seeking stable investment returns.
The funds follow hot on the heels of the four new funds that Cavendish launched almost exactly a year ago.
All of the funds have since gone on to outperform their respective indices, with the Cavendish Technology, Japan, and North American funds taking a first quartile position within their sectors, and the Cavendish European Fund a second quartile position, over the year.
The first of the two new funds is the Cavendish UK Balanced Income Fund – a UK equity and bond income offering. Funds within this sector target a return of 120 per cent of the yield of the FTSE All-Share Index, with 20 to 80 per cent of funds invested in UK fixed-interest securities and the remainder in UK equities.
The second of the two new funds is the Cavendish UK Select Fund, which will be a UK All Companies fund focusing on FTSE 350 holdings. The emphasis of the fund will similarly be on lower risk returns for investors, with the fund enjoying the benefit of the stable growth prospects of mid and large caps, and their dividend payouts.
Julian Lewis, chief executive of Cavendish Asset Management, says: “We are confident that the two new funds will be well-received by investors recovering from the doubt and uncertainty of the recession. They want exposure to the domestic market but not at the expense of taking on too much risk. These two funds further provide the perfect complement to our existing UK funds, where our current UK offerings have more of a high capital growth mandate.”
Julian Lewis, who heads up the Cavendish Worldwide Fund, will be the lead fund manager for the Cavendish UK Balanced Income Fund.
The Cavendish UK Select Fund will be headed up by Cavendish’s UK equities specialist, Paul Mumford.
