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Premier Halycon extra income fund aims at market for care costs

Premier Asset Management has launched the Halcyon extra income fund, a fund of funds aimed particularly at older people with rising care costs.

The Oeic is a mixed fund which can invest in open and closed-ended funds. It will use equity and bond funds, with the aim of producing a higher return than cash investments plus capital growth, with an initial target yield of 4.5 per cent a year.

The fund is being set up primarily on behalf of the Nursing Home Fees Agency but is open to clients of other IFAs. It will invest 70 per cent in fixed-interest funds, with up to half of that proportion being invested in high-yield bonds and the rest in index-linked and investment-grade corporate bonds. The remaining 30 per cent will be invested in equity funds. Minimum investment is 3,000.

Nursing Home Fees Agency director Peter Fisher says: “There are very few financial products available for older people and we are always aiming to achieve better returns than leaving money on deposit, especially if high care costs need to be met.

“This fund will ensure our clients have access to independent investment expertise and the fund of funds approach will ensure greater diversification with active management.”

Brooks Macdonald senior consultant Roddy Wirgman says: “This is not something that we would use a huge amount of as most of our investors can employ an asset manager direct but it sounds like a good idea for quite a lot of IFA clients.”

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