Santander expands portfolio range
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Santander Asset Management has launched a sterling corporate bond fund and an enhanced income fund to sit within its portfolio investments range.
The sterling corporate Bond fund is managed by Patrick Smith and invests in both investment grade corporate bonds and government securities. Income payouts on the fund will be monthly.
Stephen Payne is the manager of the enhanced Income fund, which has a targeat yield of 6 per cent.
Holdings in the fund are likely to include British equities, bonds, and covered call options. Income will be paid quarterly. The equity portion of the fund will mirror that of the Santander equity income unit trust, managed by Hak Salih.
To generate extra income the manager will look to sell the right to some of the potential capital growth on the fund’s holdings for a limited period. This will generally apply to stocks that have grown over 10 per cent over three months. Only the excess over 10 per cent on those selected stocks will be sold.
The additions bring the total number of funds in Santander’s range to 10.
The annual management charges are 1 per cent for the sterling corporate bond fund and 1.65 per cent for enhanced income. There is no upfront charge on either fund.
John Bearman, the firm’s chief investment officer, says the funds aim to provide a source of regular income for investors in a low interest rate environment.
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