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Nationwide fills gap with Catmarked income fund

Nationwide Building Society has filled a gap in its product portfolio with a Catmarked unit trust designed to generate high income.

The high income fund is aiming to produce income of 6.5 per cent a year by investing in UK corporate bonds. At least 80 per cent of the portfolio will go into investment-grade corporate bonds and the remainder will go into high-yielding corporate bonds.

There are three existing unit trusts in Nationwide&#39s range of unit trusts — Nationwide balanced, Nationwide tracker and Nationwide UK growth. The new fund is Catmarked like the existing tracker fund, so it has no initial charge and the annual management charge is 1 per cent.

The company feels this will make it more attractive to investors who usually rely on building society accounts. These investors may be looking for an alternative to make their money work harder for them as falls in the Bank of England base rate has affected the interest paid on savings.

The fund invests in a higher proportion of investment-grade bonds than some corporate bond funds which makes it less risky than those producing higher yields. However it may still be too risky for investors who are used to building society accounts, where the initial capital is not at risk.

According to Standard & Poor&#39s, the Nationwide UK growth fund is ranked 112 out of 242 funds based on £1,000 invested on a bid-to-bid basis with net income reinvested over three years to October 15, 2001.


Morley Fund Management – UK Focus Fund

Friday, 19 October 2001.Type: Oeic.Aim: Growth by investing in a concentrated portfolio of between 30 and 40 UK stocks.Minimum investment: Lump sum £5,000.Investment split: 100 per cent in a concentrated portfolio of between 30 and 40 UK stocks.Isa link: No.Pep transfers: No.Charges: Initial 5 per cent, annual 1.5 per cent.Commission: Initial 3 per cent, renewal […]

Chelsea reduces SVR to 6.14 per cent

Chelsea Building Society has reduced its standard variable rate to 6.14 per cent from 6.34 per cent in response to the recent Bank of England base rate cut. The new rate takes effect from October 29 and will apply to all Chelsea products linked to the rate including its cashback plus, cashback, buy to let, […]

Mercantile Building Society – Product 85i

Thursday, 18 October 2001.Fixed term: Until October 1, 2003.Fixed rate: Loans up to 80 per cent of valuation – 4.99 per cent, 81-95 per cent – 5.24 per cent.Minimum loan: £25,000.Maximum loan: North-east England, up to 95 per cent of valuation subject to a maximum of £250,000, rest of UK up to 75 per cent […]

Howard claims savers could be hit by tax rises

Government overspending will lead to tax hikes which are damaging to consumers trying to save for the future, claims new Conservative Shadow Chancellor Michael Howard.In his first speech since returning to the Shadow Cabinet, the former Home Secretary told the Conservative party conference in Blackpool last week that the Government is spending faster than the […]


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