Henderson Global Investors is launching a Jersey-domiciled, London-listed closed-end fund, Henderson diversified income.
Its portfolio will be managed jointly by John Pattullo and Jenna Barnard, while Julian Green will be responsible for investment into secured loans.
It will target an initial minimum annual yield of 7 per cent based on the offer price of 100p from a diversified portfolio of predominantly UK and European fixed income assets.
The fund hopes to deliver an ongoing yield of at least 1.25 per cent and investments will be in secured loans, asset-backed securities, high yield corporate bonds and investment grade bonds.
It will also invest in a small proportion of derivative instruments.
Henderson head of investment trusts James de Sausmarez says: Income remains a dominant requirement for many investors and Henderson Diversified Income Limited will provide investors with a welcome means of diversifying their portfolios away from equities and into the specialist fixed income assets that are not accessible to the average investor. With a structure that aims to deliver a yield that is consistently 1.25 per cent over 3 month LIBOR, investors will benefit from protection against rising interest rates.