View more on these topics

Product matters

Corporate bonds have become more

popular in today&#39s volatile investment climate. With global markets yo-yoing on a daily basis and in the midst of a period of low inflation and interest rates, equities certainly look riskier in the short term.

The Threadneedle strategic bond fund, due for launch on November 5, will invest

initially in high-yield

and investment-grade corporate bonds. The fund is also permitted to invest in government stock, supranationals and convertibles but will not be doing this immediately.

The fund will be attractive to investors wanting to steer clear of current turbulence in the equity market. It will also suit those seeking a reasonably high income but who are unwilling to accept the risks associated with investment in high-yield bonds alone.

Although the style of product is far from new, the fund&#39s overriding strength will be its management team. Threadneedle has a 20-strong team of bond fund managers based in London and managed by Robert Stirling. It also claims to have the resources of over 100 bond fund managers around the world.

The fund&#39s manager, Ted Bacon, has possibly the most impressive record. He has 18 years&#39 experience, meaning that he has managed bonds through a full range of market conditions. His lengthy experience will be invaluable if markets stay as they are for a while.

I believe the fund will provide a reasonably high level of income for those looking for an alternative to equities.

It aims to provide a gross initial running yield of 7.5 per cent a year and qualifies for Peps and Isas.

Darius McDermott

is managing director

of Chelsea

Financial Services

Recommended

R&SA UK Life adds 11 external fund links

Royal & SunAlliance UK Life is teaming up with four fund managers to add eleven external fund links to its lifestyle investment bond. The eleven new funds, available from 15 October, will be offered by Aberdeen, Framlington, Gartmore and Newton taking the total number of fund options available on the Lifestyle Investment Bond to 31. […]

Deco Capital – Boadicea Fund

Wednesday, 10 October 2001.Type: Hedge fund.Aim: Growth by investing in European equities, bonds, futures and options, cash.Minimum investment: $100,000, euros100,000.Place of registration: Cayman Islands.Investment split: 90 per cent European equities, 10 per cent bonds, futures and options, cash.Isa link: No.Charges: Annual 1.5 per cent.Commission: Subject to negotiation.Tel: 020 7648 4347.

Exeter Investment Group appoints two area managers

Exeter Investment Group has made two new appointments to its regional IFA salesforce.Brian Sedge has been appointed as area manager for London and the south-east, while Melanie Radford is to take on the south-west region.Sedge has more than 20 years experience in financial services , working as both an IFA and salesman, while Radford has […]

Advisers must show the value of their service

IFAs must articulate the added value service they offer to consumers if they are to convince the regulator of the need for independent financial advice, according to Aifa director general Paul Smee.In his speech to the FSA polarisation open meeting, Smee said polarisation has been a force for good and without it IFAs could not […]

Guide

Guide: 10 required letters — what to send, to whom and when?

This guide from Johnson Fleming will take you through the required communication and also give ideas for additional actions that will ensure your auto-enrolment project is a success. The topics in this guide include: the letters you need to send out; what to send and when; the importance of employee engagement; and what to consider as additional communication.

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment