Scottish Equitable has launched a mirror of the Aegon Optimal Income fund into its single premi...
Scottish Equitable has launched a mirror of the Aegon Optimal Income fund into its single premium Performance Bond.
The Scottish Equitable UK High Yield Corporate Bond fund is managed by Steven Snowden and will be run in exactly the same manner as the Aegon product, which itself has been running for just over one year.
Since the launch of the £8.8m Aegon fund, the portfolio has been split equally between investment grade and non-investment grade bonds and Snowden will continue this approach in future.
The fund is positioned towards the more aggressive and higher risk end of the corporate bond market, with a focused portfolio of typically between 30-40 holdings.
Snowden said: 'The objective of the fund is to invest in the lower end of credit quality, with a large focus on BBBs. While bonds are lower risk than equities, this fund is aimed towards the higher risk end of the market to deliver a higher yield.'
Due to the type of holdings Snowden invests in the fund normally yields between 8%-10% but he said the fund does not target a particular yield and invest in stocks to achieve this.
Will assess regulation
Client was warned of risk
Megan Butler keynote speech at Women in Finance summit
Market anticipates a May hike
Newly-formed Mobius Capital Partners