Schroder ISF European Dividend Maximiser
Generating
an enhanced yield
The high yield for this fund will be generated using a tried and tested two-step process:
Step 1: |
Step 2: Boosting the income |
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We buy and own 50-80 large and mid cap European stocks which have the potential to produce high dividend yields. |
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We use options to exchange some of the upside on these stocks for income. This is used to boost overall income of the portfolio. |
around 4% p.a |
around 4% p.a1 |
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| = 8% p.a target |
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The trade-off for this increased income is a capped upside on the stocks held – investors may in effect be exchanging a higher income for reduced capital growth potential.
To learn more about the options strategies used in step 2, download our technical document.
- We can estimate the value of upside to be sold because there is a direct link between this value and stock price volatility, which is observable. For more information on this process, please download the technical document.
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