Slater Investments to launch mid-cap income fund
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Slater Investments is to launch the MFM Slater Income fund on September 19, investing in a portfolio of companies based outside the FTSE 100.
The fund – which is aiming to produce dividend yield of 5.49% – plans to deliver “an attractive and increasing level of income” and provide investors with long-term capital growth.
Investing across the market capitalisation spectrum, the fund to be managed by Mark Slater (pictured), will invest in high yielding companies with growing profits and stron cash flows.
Mark Slater, the chief investment officer of Slater Investments, says: “Many other funds have very heavy weightings towards a handful of lethargic large cap stocks.
“We believe that there are attractive, often overlooked companies outside of the FTSE 100 with sustainable and growing dividend yields and capital appreciation potential.”
He says: “High yielding stocks are by far the most attractive source of income at this time.
“Bond yields are dangerously low thanks to the distortions of quantitative easing. Interest rates on cash are likely to remain very low for the foreseeable future.”
Slater said high yielding equities could offer the prospects of “higher yields, capital growth and inflation protection”.
He adds: “We expect a tidal wave of money to be invested in higher yielding equities in the coming years, which should mean significant capital gains for early investors.”
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