Rothschild Asset Management is introducing a high-yield bond fund next month as the first step of its relaunch into the retail market.
The Five Arrows monthly-income fund will be part of Rothschild's new retail Oeic, which will encompass its seven other offerings to the retail market. It opens on October 1.
The fund will aim to have a gross yield of between 8.7 and 9 per cent but will hold more than half its portfolio in investment-grade bonds.
The fund will offer two share classes, giving investors the choice of paying no front-end charge with a slightly higher annual fee of 1.5 per cent or 3 per cent initial and 1 per cent annual.
Commission is 3 per cent initial and 0.3 per cent trail for both share classes.
The fund will be Rothschild's first retail UK fixed-interest product although fund managers Lucy Speake and Jake Newman have run the Marks & Spencer high-income fund since April last year.
Rothschild says it plans to promote the fund heavily with its first direct consumer advertising this autumn. But head of retail marketing David Orr says it will still encourage investors to go through an IFA.
Orr says: “Our research indicates many IFAs will be attracted to a product which delivers a high monthly income combined with an attractive charging structure.”