Scottish Equitable International is targeting low-risk investors with a
fund investing in the UK corporate bond market and a Government bond fund.
The corporate bond fund will focus on investment-grade bonds issued by
companies with Standard & Poor's credit ratings of between BBB and AAA.
The funds will be run from Luxemburg, with SEI sister company Aegon Asset
Management providing investment advice. It manages around £11bn in the
sterling corporate bond market.
Both funds have an annual charge of 1 per cent. They are available from
SEI says recent stockmarket volatility means that more investors want
Aegon fixed-interest investment manager Danny McKernan says: “This is a
good time to be looking towards fixedinterest funds. Corporate bonds are
particularly attractive as the increasing amount of money being switched
from equities is having a positive impact on this market.
“Government bonds offer one of the safest investment havens but, for
investors willing to take slightly more risk, corporate bonds can offer a
significantly higher yield.”