View more on these topics

First time for Cazenove bond fund

Cazenove Investment Fund Management has made its UK corporate bond fund available to the IFA market for the first time through an Isa.

The UK corporate bond Isa aims for a high level of income and capital growth by investing mainly in investment-grade corporate bonds within the UK, although it has the discretion to invest elsewhere. The fund also has the ability to invest up to 30 per cent in gilts, but it is currently not invested in them.

Michel Gonnard, who heads up Cazenove&#39s fixed-interest team, runs the fund. He joined the company in 1997 from Barclays Global Investors and also manages the Cazenove international bond fund.

With the UK corporate bond fund, Gonnard chooses bonds in a rage of sectors, with ratings of BBB upwards. The portfolio is currently overweight in the auto and telecommunications sectors relative to its benchmark index, the Merrill Lynch Sterling Non-Gilt Index, which has had a negative impact. However, it has also reaped the rewards of being overweight in financials and consumer products.

The fund has no target yield because this is felt to constrain fund managers, who may feel obliged to invest in certain sectors and holdings to maintain the target yield. Instead, it aims to outperform its benchmark index by 0.75 per cent. However, it does have a current yield of around 5.9 per cent, which puts it at the lower return and lower risk end of the spectrum.

Income products are in demand from investors as the race to use up their Isa allowance before the end of the tax year accelerates. However, some investors may be put off by this funds ability to stray into other regions, despite its name.

According to Standard & Poor&#39s. the Cazenove corporate bond fund is ranked 12 out of 57 funds based on £1,000 invested on a bid-to-bid basis with net income reinvested over three years to February 22, 2002.


New fears over Equitable unit-linked assets

The security of Equitable Life&#39s unit-linked assets is again under question, with consulting actuaries Watson Wyatt saying it is not convinced the funds are safe in the event of insolvency.Following Watson&#39s concerns, its clients, including Lloyds TSB, are sending transfer applications to hundreds of their members who have unit-linked AVCs with Equitable saying the future […]

Axa in bid to link up IFAs with accountants

Axa Isle of Man is running a campaign to encourage UK accountants and solicitors to link up with IFAs to provide inheritance tax planning advice.The offshore arm of Axa is writing to more than 30,000 accountants and solicitors to encourage them to review their clients&#39 IHT arrangements. Those wanting to be put in touch with […]

Dual to the death

So lenders are being “greedy and unfair” again? All lenders are out to rip off the consumer and do so shamelessly?The recent ombudsman ruling on dual pricing has sparked off the usual round of pejorative stories from some sections of the press regarding their great “Satan” – the financial services industry generally and, in this […]

HSA and Leeds Hospital Fund to merge

Healthcare cash plan providers HSA and Leeds Hospital Fund are merging to form a combined operation controlling 45 per cent of the sector.HSA has 37 per cent of the cash plan market, primarily in London and the South-east, while LHF has a strong brand presence in the North, with about 7 per cent share.Despite their […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    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