View more on these topics

Security measure

MARLBOROUGH FUND MANAGERSHigh Yield Fixed Interest FundType: Unit trustAim: Income and growth by investing globally in fixed-interest, variable-rate and index-linked securitiesMinimum investment: Lump sum £1,000Investment split: 100% in fixedinterest, variable-rate and indexlinked securitiesIsa link: YesPep transfers: YesCharges: Initial 5.25%, annual 1.5%Commission: Initial 3%, renewal 0.5%Tel: 0870 757 7205The objective of the Marlborough high-yield fixed-interest fund is to provide a high level of income with the opportunity for some capital growth by investing in mainly fixed-rate, variable-rate and index-linked securities.

Bright Financial Services sales director Paul Breaks thinks the timing of this fund launch is just right. He says: “It offers diversity to an equity portfolio, particularly for income-seekers. But it is at the higher risk end of fixed-income funds and needs to be monitored on a regular basis.”

Breaks says he likes the fact that the fund will be run by Paul Read, who has over 30 years’ experience of running fixed-interest funds. He draws attention to the aim of the fund – to provide a high level of income of around 7.5 per cent net of charges – which he feels is relatively high.

He says: “I agree with the fund manager that the high-yield market is the most attractive part of the fixed-interest spectrum at present. The fund launch comes at a time when there are lots of new issues expected and the fund could do well over the next six to 12 months.”

Considering the potential drawbacks of the fund, Breaks says: “As always with high-yield stock, there is greater risk to capital from defaults. Half of the 1.5 per cent annual management charge is taken from income and half is taken from capital. This helps the income stream but reduces capital.”

When asked which funds are likely to provide the main competition for the fund, Breaks suggests the recently established Old Mutual dynamic fund. He says the Old Mutual fund has a greater reliance on a team approach and offers stiff competition but has a lower yield.

BROKER RATINGSSuitability to the market: GoodInvestment strategy: GoodCharges: AverageRemuneration: AverageOverall 7/10


FTBs are falling faster in the UK

The proportion of first-time buyers in the UK has fallen more rapidly than in any other country, according to research published by the Council of Mortgage Lenders.

Duffy sees bright future for Charcol with Garfield on board

Hamptons International Mortgages managing director Kevin Duffy says the sale of Charcol to a consortium including founder John Garfield is not good news for the rest of the industry because “Garfield has a proven record of turning water into wine”.But Duffy is curious to see what scale Charcol’s new management will grow the business to, […]

Zurich multi-tie signs up Scot Eq for pensions

Zurich Financial Services has signed a deal with Scottish Equitable for the supply of pension products through its new as yet unnamed multi-tie operation.The deal will see the entire Scottish Equitable range of pensions distributed through the new multi-tie, which is expected to comprise around 2,200 of Zurichs tied advisers. It is understood the multi-tie […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm