Aberdeen Asset Management has brought together two of its investment trusts to form a new European high-income Isa.
The Isa brings together the European growth & income and the European monthly income trusts.
The new product offers tax-free income, currently more than 8 per cent, from the funds' bond portfolios.
There is also the potential for capital growth through the European equi- ties section of the portfolio.
There is no initial charge apart from 0.5 per cent stamp duty.
Annual management charge is 0.5 per cent plus VAT. Initial commission is up to 3 per cent although there is no trail.
Aberdeen investment trusts marketing director Piers Currie says: “It is increasingly difficult to find a high level of income by investing in equities with the FTSE All-Share now yielding below 3 per cent.
“Conversely, fixed-int erest and bond funds offer higher yields but there is little opportunity for capital growth.
“With the launch of the European high-income Isa, we aim to provide investors with a way of getting a high level of income tax-free and also the potential for capital growth.”