View more on these topics

SocGen targets corporate bonds

SocGen Asset Management has entered the corporate bond fund market for the first time with the introduction of the SocGen sterling corporate bond unit trust.

The unit trust will invest in a portfolio of between 40 and 50 corporate bonds issued by companies that are in the UK corporate bond sector. At least 80 per cent of the fund will be invested in corporate bonds with a rating of BBB and above. The remaining 20 per cent will be invested at the discretion of the fund managers, depending on which areas appear most attractive. However the fund will not invest in junk bonds.

Based in London, the unit trust will be managed by Paul Rayner and Stephen Peirce. Rayner joined SocGen Asset Management in 1998 as an economist and fixed income specialist. He was joined in 2000 by Peirce, who previously worked for Teachers Insurance.

The fund has an initial yield of 5.5 per cent and is aimed at investors who are looking for income. Corporate bonds with a rating of BBB and above offer less attractive yields than funds with a rating of BB or lower. However they are more stable than funds that have lower ratings and this can be attractive when markets are volatile.

The SocGen sterling corporate bond fund fits in well with the other seven funds available from SocGen Asset Management. These include UK growth, technology. European growth, UK income, Japan growth, global managed and stockmarket managed.

According to Standard & Poor&#39s the UK growth fund is first quartile, the UK income and European growth funds are second quartile and the technology and Japan growth are third quartile, based on £1,000 invested on a bid to bid basis with net income reinvested over one year to April 23, 2001.


Npower lines up loan and life push

Utility company npower is set to launch into the mortgage and life insurance market next year and may even consider becoming an IFA as part of its new financial services package.The firm said earlier this month that it would be diversifying its core business of supplying gas and electricity to homes and businesses into the […]

Law firm challenges PIA in &#34windfall shares&#34 test case

Lawyers Reynolds Porter Chamberlain has issued proceedings in the “windfall shares” test case instructed by PI underwriters Collegiate Insurance on behalf of IFA Needler Financial Services. The law firm is challenging the PIA&#39s decision that people missold personal pensions do not have to give up any of their compensation on receipt of windfall payments if […]

Tracker funds can seriously damage your wealth

Manipulation of past performance figures to suit one&#39s argument is common enough among service providers but Virgin&#39s Andrew Stronach is clutching at straws when he claims that “since September last year only one fund in the UK all companies sector is currently in the black” (Money Marketing, April 12).No one investing in the all companies […]

The Daley Update

u M&G&#39s first-quarter results show Isa sales are down by around 25 per cent on last year. M&G said it was unable to reveal precise Isa figures but total sales for the quarter, including non-Isa sales, were £250m compared with £303m last year. Deputy managing director of UK retail Phil Wagstaff says M&G has still […]


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 thought leadership.

    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