Henderson is extending its institutional fixed-interest expertise to the retail market with a new Isa and Pep transfer wrapper to be launched next week.
The Henderson managed income Isa/Pep will open on September 19 and will bring together a portfolio of the fund manager's best-performing institutional corporate and high-yield bond funds. Although the wrapper will consist predominantly of fixed-interest holdings, it may contain a small holding from either of the company's equity income or UK capital growth funds.
The Henderson UK equity income fund will make up a part of the original portfolio and will be managed by Patrick Harrington, who was recruited from M&G this week. The product will aim to deliver an annual yield of around 7.5 per cent but will aim to keep risk levels to a minimum.
It will offer two share classes. The standard class will have an initial charge of 4 per cent and an annual charge of 1.3 per cent. The X share class will have no front-end charge and an annual charge of 1.8 per cent. The X share class has exit fees of between 4 per cent and 1 per cent over the first six years. Both classes offer 3 per cent initial commission and 0.5 per cent trail. Minimum investment is £5,000.
Head of UK retail Simon Ellis says: “Investor behaviour is migrating to core standard products. We have got a fixed-interest capability on the institutional side which is doing very well and so we want to translate that into the retail marketplace.”