The fund, which launched on April 29, is run by Ian Kenny and targets a projected gross income yield of 3.7 per cent.
Kenny is a member of the fixed interest team at S&W which is headed up by Chris Lynas
The product has an AMC of 1 per cent and will be available on Cofunds from June 1, 2009.
S&W director of marketing and sales Nick Hodgson says: “The fund takes a cautious approach and aims to provide a higher yield than cash without taking on excessive credit risk. It is principally targeted at investors with a one – three year investment horizon. As current bank interest rates look increasingly unrewarding, and are likely to remain so, short-dated corporate bonds are appealing to investors searching for a higher yield than cash without excessive risk.”
”We have developed this unique product for the cautious investor. The fund will provide valuable diversification benefits when combined in a portfolio with other asset classes, such as equities, longer-dated bonds and cash.”