Axa Investment Managers is introducing a new UK corporate bond fund managed by Neil Sutherland.
Axa IM says it wants to bring its expertise in the European and UK institutional fixed-interest markets – where it currently has 19 research analysts managing £118bn of investments – to retail investors.
The fund's overall aim is to provide a combination of income and capital growth by investing predominantly in investment-grade corporate bonds.
Sutherland currently manages the fixed-income portion of Axa's extra income bond, which is AA rated by Standard & Poor's, as well as Axa's institutional long AA corporate bond fund.
Minimum investment is £1,000 with top-ups of at least £500 or regular payments of £50 a month.
Commission is 3 per cent initial with 0.5 per cent trail. The initial charge is 5 per cent with an annual management charge of 0.75 per cent.
Sutherland says: “Although corporate bonds performed extremely well over the course of 2003, the macroeconomic backdrop remains positive for the asset class. Default rates continue to fall globally, company cashflows are improving and the global recovery is undergoing what we believe to be a sustainable course.”