Newton is offering a 1% discount on investments into its new European High Yield Bond fund, which wi...
Newton is offering a 1% discount on investments into its new European High Yield Bond fund, which will aim to achieve a yield of 9.46%.
The normal 4% initial charge will be discounted to 3% until 29 September. There is an annual management charge of 1.5%. IFAs are offered 3% front-end commission and 0.5% renewal.
The fund will be managed by Helena Morrissey, head of fixed interest at Newton and will contain a portfolio of pan-European fixed interest bonds, hedged back into sterling. Theresa Egan will support Morrissey on the fund.
A sub-fund of Newton's Oeic, the portfolio will invest a minimum of 66% in high yield bonds, which are those defined as sub investment grade bonds rated lower than BBB. This is intended to maximise income for investors.
Morrissey said the fund would also maintain the flexibility to include a blend of investment grade bonds, gilts and cash, depending on the relative attractions for investors, and to provide a safeguard for setbacks in the high yield bond market. She said: "The prospects for the European high yield bond market look excellent at the moment. The market is well positioned with low inflation, low interest rates, M&A activity and attractive yields and spread of bonds."
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