Today, 1st October, New Ireland Assurance is delighted to announce the addition of the Bloxham High Yield Fund to their broad range of active and consensus investment options.
Aims of the Bloxham High Yield Fund:
- To capture an initial yield exceeding 4.5%
- To grow the fund’s dividend income on average by 8 to 10% per annum
- Provide medium to long term capital growth for clients
The Bloxham High Yield Fund will allow investors to benefit from investment in high yielding equities on a global basis. The case for investing in such stocks is compelling, particularly for those looking for steady long term performance:
- A focus on the largest and most stable companies greatly reduces the risk of nasty surprises
- An income stream with the potential for inflation busting growth over time
- Potential for capital values to rise
Over time, dividends have produced a far greater level of return for global shares than capital growth. For example, if you look at the returns across nine major global markets from 1950 to 2003, dividends accounted for a significant 65% of cumulative returns1.
The Bloxham High Yield Fund, available through the life company’s Pension and Investment plans, will allow investors to benefit from investing in high yielding equities, with strong global diversification. It will focus on investing in the largest and most robust companies in the world, providing the fund with a regular income stream.
The fund will invest in a mix of 50-70 global stocks that pay higher than average dividends. The thinking behind this strategy is that companies with an ability to pay higher dividends over a sustained time period generally provide stable growth opportunities going forward. Companies that can afford to pay high dividends to their shareholders combined with good cashflow are good indicators of a healthy balance sheet.
Bloxham apply a stringent set of financial tests to ensure that stocks selected are financially strong and that there is a high probability of above average dividend growth being sustained over the coming years.
The main criteria applied are:
- Companies’ earnings growth rates must meet industry benchmarks
- Earnings must exceed dividends by a comfortable margin
- Low debt to equity ratio
- Cash flow to exceed dividends by a comfortable margin
- Companies must have an attractive valuation
The Bloxham High Yield Fund will appeal to:
- Investors willing to commit to the medium term – a period of at least three to five years
- Investors interested in accessing a fund with a conservative investment style – aiming to reduce risk and maximise return
- Investors seeking to diversify their investments globally
- Investors looking to access a multiple award winning fund manager with a proven track record in managing Global Equity Income Funds in good markets and bad
The minimum investment required to participate in the fund is €5,000. Further details are available on request from your New Ireland financial advisor or your broker.
1 Dreisdner Kleinwort report 2003
ENDS
For further information contact:
Laura Erskine
Public Relations Manager
New Ireland Assurance
Ph. 01 617 2586
Mob. 086 856 2929
New Ireland Assurance Company plc trading as Bank of Ireland Life is regulated by the Financial Regulator and is a member of the Bank of Ireland Group.
New Ireland Assurance is delighted to announce the addition of the Bloxham High Yield Fund to their broad range of active and consensus investment options.