View more on these topics

Deutsche trust set for corporate bond switch

Deutsche Asset Manage-ment is to convert its high-income trust into a corporate bond fund after failed attempts to bolster its flagging performance.

The firm says its decision to convert the fund comes as a result of inc-reased volatility in UK equity markets over the past three years, which it says has made it increasingly difficult to sustain high levels of income.

The fund slashed its yield in October 1999 to 7.2 per cent from 10 per cent and has consistently been in the bottom quartile of the UK equity bond and income sector since its launch in 1993.

The conversion, which is still subject to unitholder approval, will produce the company&#39s first offering in the corporate bond sector. If the conversion goes ahead, all unit-holders will be offered a free switch into any of the firm&#39s other funds.

The annual management charge of the converted fund will be reduced from 1.25 per cent to 0.5 per cent while the gross yield will marginally reduce to around 7 per cent from 7.25 per cent.

Managing director Neil Jones says: “Regrettably, the performance of the high-income unit trust has remained below our expectations.

“We have conducted a thorough review of the trust and have concluded that our investors will be best served by converting into the corporate bond plus fund.”

Recommended

Portman pulls out of remortgage market &#39for time being&#39

Portman Building Society has become the first major lender to pull out of the remortgage market.The tactical withdrawal means Portman has stopped accepting remortgage applications “for the time being”, believing these borrowers will switch to another lender once their special deal ends.Corporate communications manager Mike Dobson says: “It cannot be good for lenders and consumers […]

Flood of IFA complaints at Cofunds admin errors

IFA fund supermarket Cofunds has had a barrage of complaints after a chain of recent admin blunders have left IFAs misinformed and out of pocket.The platform, launched in January, has more than 1,500 registered IFA users and has taken more than£100m in Isa business.Cofunds says the very high levels of business taken this Isa season […]

Don&#39t aim wide of the mark

Over the last few weeks, we have been looking at certain key aspects of trusts as commonly used with financial services products. So far, we have discussed the importance and, in some cases, the lack of importance of the roles of settlor and trustee, noting the powers and duties of each along with importance considerations […]

Polar fears over HSBC Isa

Rival fund managers have raised concerns that HSBC&#39s triple Isa product, which combines the funds of three different providers, may breach polarisation regulations.The Isa, launched in May, combines HSBC, Merrill Lynch and Framlington funds and was created in response to recent changes in the polarisation regime.The new rules state that a provider can “issue or […]

Dividend slump? Not if you look globally

By George Boyd-Bowman, Manager of the Neptune Global Income Fund Recent research has indicated that global dividend growth will slump by as much as 50 per cent in 2016. As collapsing commodities hit high-profile dividend payers, George Boyd-Bowman explains why the US and Japan are his top picks for income growth in 2016. Click here […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm

    Email: customerservices@moneymarketing.com