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Aberdeen Prolific aims for 8% yield with bond fund

Aberdeen Prolific is launching a high-yield bond unit trust which aims to return more than 8 per cent a year.

The fund is for pension schemes and is specifically designed to take advantage of the abolition of advance corporation tax expected in this year&#39s Budget.

At least 60 per cent of the fund&#39s portfolio will consist of unfranked investments, such as bonds, to enable pension fund investors to claim back the 20 per cent income support credit allowed under Inland Revenue rules.

The fund is being modelled on Prolific&#39s fixed-interest unit trust which, on an income basis, has grown by 138.5 per cent gross and, on capital basis, by 52.75 per cent over the past five years.

Aberdeen Asset Managers pensions marketing director Jonathan Polin says: "We are launching the fund in response to demand from pension consultants. It is a tax-efficient fund for pension investors aiming to yield more than 8 per cent."

Existing investors in the fixed-interest trust will be able to transfer holdings without charges. New investors will pay an initial charge of 3.5 per cent. Annual charge is 1.25 per cent.

Minimum investment is £10,000. The offer period is from January 24 to February 13. Commission is 3 per cent.

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