Peleg to manage Gartmore Monthly Income product

Gartmore is launching a Monthly Income Fund on 8 February offering a net running yield of approximately 7.88%.

The Gartmore Monthly Income Fund, which was first reported in Investment Week last year, will have an initial charge of 1.52%, with an annual management fee of 1.25%, and a back end charge of 1.5% for those who exit within five years.

There is also a 1% charge for investors switching into the fund from other Gartmore unit trusts. There is no charge for investors switching within Gartmore's Isa.

Minimum investment is £1,000, with additional top ups in tranches of £250. The minimum regular savings amount, for accumulation units only, is £50 per month. Commission on the fund is 3% with a 0.5% trail.

Eran Peleg, manager of Gartmore's two existing corporate bond products, is to manage the portfolio.

He will invest in a spread of securities to secure the high yield, including bonds, convertibles, preference shares and Government securities.

The fund will seek investment opportunities both in the UK and globally. Peleg will also be able to hold equity or warrant based securities from stock conversions.

Gartmore Monthly Income will make its first distribution three months after launch, and then the aim is to distribute income in smoothed equal amounts each month, adjusted in the last month of the fund's year.

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