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Gartmore planning corporate bond move

Gartmore is looking to offer a new corporate bond fund in the first quarter of next year.

The stable growth fund is expected to be launched in February 2002 and will target investors looking for secure investments in a market where interest rates are falling.

The fund is likely to offer a monthly income with a running yield of around 9 per cent. To achieve such a return, the fund is likely to follow a strategy of blending corporate bonds and high-yielding bonds.

Gartmore has yet to confirm full details. Head of communications Vee Montebello says: “We are testing the market but nothing is set in stone. We are looking at a number of ideas and testing the water. But, given the current market conditions, we are working on a week-by-week basis.”

New Life Financial Planning principal John Burnard says: “I think people who have previously looked to building society savings for a secure income will want to look elsewhere now interest rates have plummeted. Although not as secure as the building society, these types of product are not as risky as equity-based investments and do generate income.”

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