Govett Investments has set up a new offshore corporate bond fund offering
income tax breaks for UK basic and higher-rate taxpayers.
The Govett corporate monthly income fund was launched on Monday and has a
target pre-tax yield of 7.4 per cent a year.
The Dublin-based fund will invest predominantly in investment-grade
corporate bonds, with up to 20 per cent of the portfolio in
The minimum investment limit is £1,000 or £50 a month.
The fund is also available in a Govett Isa with a minimum investment of
The initial charge is 3.5 per cent, with an annual management fee of 1.25
per cent, which will be charged to capital. Comm-ission is 3 per cent
initial and 0.5 per cent trail.
Sales and marketing dir-ector Graeme Sinclair says: “There is considerable
pressure for IFAs to identify income opportunities outside the withprofits
investment bond market. Govett's proposition is compelling. We have
adop-ted a sound process which provides higher yield while controlling
risk. The fund also features a real tax break incentive for basicand
higher-rate taxpayers, which is hard to ignore.”