View more on these topics

Gartmore chases income

Gartmore has unveiled the Gartmore monthly income fund, a unit trust that aims to produce income of 7.5 per cent a year.

The fund will initially invest 70 per cent in high yielding bonds and the remaining 30 per cent will go into investment-grade bonds. By including both types of bond, the fund strives to balance high income and the preservation of capital. It will also cover a range of sectors, including manufacturing, utilities, retail, media and healthcare.

The proportion of high yield and investment-grade bonds within the portfolio can be varied in line with changing economic conditions, but it is expected that the fund will favour BB-rated bonds. BB-rated bonds occupy the middle path between risk and reward, which ties in with the objectives of this fund.

Eran Peleg, who manages Gartmore&#39s corporate bond and high yield corporate bond funds, will also run this fund. He has four years&#39 experience with Gartmore&#39s fixed interest team and he will work with Gartmore&#39s head of credit research and equity research team when choosing bonds for the portfolio. Gartmore will use agency ratings such as Standard & Poor&#39s, but its researchers will also visit companies themselves before applying their own credit ratings.

Investors who are not getting enough income from building society accounts may be looking to bond funds as an alternative. Within the present climate, there are plenty of buying opportunities, especially among high yield bonds. But the success of this fund will depend on the accuracy of risk assessment and getting the right blend of bonds within the portfolio, not just picking up bonds at bargain prices.

According to Standard & Poor&#39s, the Gartmore corporate bond fund is ranked 15 out of 57 funds based on £1,000 invested on a bid-to-bid basis with net income reinvested over three years to January 11, 2002.


Scottish Widows Investment Partnership – UK Balanced Property Trust

Wednesday, January 16, 2002. Type: Investment trust maxi Isa. Aim: Income or growth by investing in a Guernsey based closed ended investment company. Minimum investment: Lump sum £7,000. Maximum investment: Lump sum £7,000. Catmarked: No. Investment split: 100 per cent in a Guernsey based closed ended investment company. Type of shares: Ordinary. Yield: 6.5 per […]

Leeds & Holbeck 2-year discount

Leeds & Holbeck Building Society, discounted mortgageDiscounted term: 2 yearsDiscount: 3%Payable rate: 5.75%Minimum loan: Maximum loan: not specifiedIncome multiples: not specifiedArrangement fee: noneRedemption fee: 4 months interest in first year, 6 months in year 2, five months in year 3, four months in year 4, three months in year 5Conditions: will not exceed bank rate […]

Gartmore Investment Management – Monthly Income Fund

Wednesday 16 January, 2002 Type: Unit trust. Aim: Income by investing in high-yield bonds, investment-grade bonds. Minimum investment: Lump sum £1,000, monthly £50. Investment split: High-yield bonds 70 per cent, investment-grade bonds 30 per cent. Yield: 7.5 per cent gross. Isa link: Yes. Pep transfers: Yes. Charges: Initial 1.5 per cent, annual 1.25 per cent. […]

David Bailey turns his lens on Scottish Widows

Scottish Widows is screening new TV ads this week directed and produced by veteran photographer David Bailey.Filmed around a lighthouse and featuring the customary widow, the ad will be shown at peak viewing times until the end of January and then from February 17 for four weeks.By the end of its run, Widows claims the […]


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