Foreign & Colonial is to take the first step in its UK retail expansion next month with a tax-efficient income product called Blue.
The new Oeic, which is set to launch on February 5, aims to offer an annual tax-free return of between 5 per cent and 5.5 per cent after charges by exploiting investors' capital gains tax allowances.
It will invest in a range of global equities, bonds and other fixed-income and protected investments.
The product has low risk levels equivalent to a gilt fund. There is a front-end charge of 3.25 per cent and an annual fee of 0.75 per cent.
Initial commission is up to 3 per cent with 0.25 per cent trail. The offer period runs until February 25, with shares priced at 50p.
The product is the first of three new funds being offered by F&C's retail arm this year, with two to four new fund launches plan ned every year for the next five years.
Head of UK retail Philip Childs says: “For us to succeed as a niche player in an extremely competitive market, we have to differentiate ourselves in almost every way. I think Blue distinguishes us on the product front. There is nothing like it on the market. It is totally innovative.”