View more on these topics

F&C make the grade

High net worth clients are the target investors for Foreign & Colonial&#39s high yield European bond fund.

This Luxemburg-based Sicav invests in European corporate bonds that are rated BB, B and CCC. The company believes it is a good time to invest in European corporate bonds because the recent turbulence of the Nasdaq and the technology, media and telecommunications sector has meant that good stocks can be picked up more cheaply now.

The European corporate bond market is relatively new, but it seems to be coming of age at the moment, thereby increasing investment opportunities. However, many non-investment grade bonds are in volatile sectors such as technology and can be risky.

Non-investment grades are used to make higher yields possible. But investors should be aware that these companies are more likely to default and they should not be over influenced by the safe image that corporate bond funds have.

According to Standard & Poor&#39s the F& C RAF multicurr bonds fund is ranked 75 out of 238 funds based on £1,000 invested on a bid to bid basis with gross income reinvested over three years to January 29, 2001.

Recommended

Halifax buys Equitable

Halifax has agreed to buy Equitable Life for £1bn, in a deal which could see guaranteed annuity rate policyholders trading their guarantees for upfront bonuses. Halifax will pay £500m for Equitable&#39s asset management business, administration systems and salesforce. Halifax will then pay £250m into the Equitable with-profits fund if the holders of guaranteed annuity rate […]

Gartmore goes for growth

Collins says: “There are various marketing opportunities. Clients requiring high income, those paying 40 per cent tax, and those who use zeros for school fees planning using the zeros. It could also be used where high income and capital growth are needed to cater for different classes of beneficiaries.”Identifying the main useful features and strong […]

Tories pledge to axe savings tax

The Conservatives have vowed to abolish taxes on savings in the first of a series of announcements detailing the party&#39s pre-election tax promises. Shadow Chancellor Michael Portillo says a Tory administration would scrap taxes on savings for people earning less than £32,000. The move would apply to bank and building society accounts as well as […]

ScotEq CD-Rom helps IFAs comply with drawdown rules

Scottish Equitable is issuing IFAs with a CD-Rom aimed at helping them meet regulatory standards on sales of income drawdown and phased retirement plans. The CD-Rom contains an electronic application form and helps the IFA check whether the sale is compliant. ScotEq says the CD-Rom is the first of its kind on the market and […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment