Contango Asset Management has launched a new LIC with the dual purposes of providing reliable income and portfolio diversification. The Contango Income Generator (ASX:CIE) will invest in high quality ex-30 stocks that have relatively lower volatility, sound balance sheets, consistent and franked dividends, and sustainable earnings growth. George Boubouras, CIO at Contango Asset Management, says the LIC has the added benefit of providing portfolio diversification. “Many investors are already exposed to large cap high yielding stocks such as the banks and Telstra… Blending an existing large cap portfolio with an ex-30 income fund could increase diversification and reduce risk while also maintaining or even increasing yield.” The Fund, which has been available to wholesale investors for nearly 3 years, will pay investors a minimum 6.5% distribution with potential for upside. Over the past 12 months the fund delivered 11% income and is targeting 7.3% gross this year. Click here (VIEW LINK) for more information and to access a copy of the prospectus.