Barclays Global Investors is set to launch a high yielding corporate bond fund.
The BGI Optimum Income Fund will have an estimated gross annual yield of 7 per cent.
The fund which will avoid investment in so called 'junk bonds,' aims to provide the high yield through investment grade bonds with an average 'A' rating or unrated bonds of equivalent standard.
The unrated bonds will be from quality companies who have decided not to have their bonds rated for whatever reason.
The fund has an initial charge of 4 per cent and an annual management charge of 1.25 per cent.
The fund offers initial commission of 3 per cent with 0.5 per cent renewal. A special introductory offer sees the initial commission raised to 0.75 per cent until June 30, 1999.
BGI Funds is marking the launch with a series of roadshows in 14 venues.