View more on these topics

M&G aims at Higher Corporate Bond Pep Yields

M&G is taking a different investment approach with its High Yield Corporate Bond Pep.


Unlike most corporate bond Peps which invest in bonds with a Standard & Poor&#39s AAA rating, M&G will invest in corporate bonds with a lower Standard & Poor&#39s ratings, even as low as B. These companies include Orange Telecom, William Hill, Punch Taverns and HMV Media.


M&G will actively manage the Pep which aims to achieve its estimated annual distribution yield of 8.5 per cent through investing 80 per cent of the fund in corporate bonds. This is in contrast to many of its high yielding counterparts which rely on heavy weightings in preference shares and convertibles.


As a guide, Standard & Poor&#39s Micropal figures as at September 22, 1998, show M&G&#39s existing Corporate Bond fund is ranked 6th out of 17 funds in its sector since its launch, figures are based on a bid-to-bid basis for £1,000 with net income re-invested.


Recommended

Grip non-discriminates

ASU MORTGAGE PROTECTION PLANSGripincomeSAFEType: Non-discriminating income protection policy in the event of accident or illness.Maximum benefit: Up to 75 per cent of earnings subject to a maximum of £2,500 a month.Benefit payment term: 12 or 24 months.Deferred period: 30 days.Premium: 12 months cover – class one occupations – £1.50 per £100 of benefit, class two […]

Staffordshire strikes cashback blow for mutuals

The Staffordshire Building Society is offering a new five per cent cashback mortgage this month which it says is blow for mutuals against plcs.The cashback is available on advances of 90 per cent for both purchase and remortgage and has no application or arrangement fee.Staffordshire&#39s standard variable rate is 8.5 per cent almost half a […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment