Keydata is offering a secure income bond which aims to pay 7.5 per cent annual income over five years without relying on equities.The fund will invest in a mix of cash and insurance contracts. It is designed to appeal to income investors who are put off by the perceived risk of investing in equities or high-yield bonds. It invests in corporate protec-tion policies, which it buys from companies when the insured individuals retire. Policies mature when the ex-employees die. They are priced on a KPMG model that is stress-tested every six months to ensure accuracy. Risk is controlled through asset allocation and issuers of insurance contracts in the portfolio must have a minimum A rating from Standard & Poor’s. The fund offers trail commission, despite being closed-ended allowing IFAs to rebate initial commission and switch clients out of equity products without penalties. Minimum investment is 4,000. The fund closes on September 16, 2005. Hedley Asset Management managing director Mike Shaw says: “Recommending this type of product, you have to look very carefully at who it is underwritten by. Generally speaking, we do not recommend such products to our clients.”
UK all companies fund is the most consistent performer in rising or falling markets, says Philip Scott
Investment funds under management for June 2005 were up by 19 per cent on figures for June 2004 at a 298bn. Isa funds under management of 41bn also rose by 21 per cent.
Close Fund Management
European Accelerated Fund
IN Partnership has seen ann-ual profits soar from 10,000 last year to more than 1m this year and is warning that older networks might struggle in an increasingly technological environment. The Horsham-based network has focused its strategy on IT giving it net profits of 1.067m to June 30 year-end. Currently with 200 firms and 500 […]
After a year of correctly anticipating bund yields (negative) and defaults (Abengoa), James Foster looks forward to a rise in interest rates in 2016.
- Top trends
- Top trends
- Pension tax relief in firing line as Hammond mulls ‘intergenerational fairness’ Budget
- Martin Lewis wins claim against PPI chaser that used his image
- The future of Cofunds: What next for a platform titan?
- Scottish Widows mulls Standard Life corporate pensions book takeover
- Former SJP adviser jailed after gambling clients’ money
News and expert analysis straight to your inboxSign up
Latest from Money Marketing
The number of Sipp related complaints at the Financial Ombudsman Service has continued to rise. Between July and September, 767 Sipp enquiries were received, FOS data out today shows, compared with 678 for the previous three months. Sipp complaints are now more than 50 per cent higher than they were in early 2016. 193 made […]
Three fund selectors give their views on choosing passive funds, blending, and investor suitability
The youngest ever fellow of the Personal Finance Society has moved to a new advice firm. Vito Faircloth gained the accolade last year at the age of just 22. He became level four qualified in August 2015 before taking additional exams with the professional body. Chief executive Keith Richards described the achievement as “truly remarkable”. […]