Threadneedle has launched a retail share class on its AAA rated UK Corporate Bond Fund, paying tria...
Threadneedle has launched a retail share class on its AAA rated UK Corporate Bond Fund, paying trial commission to intermediaries.
It has an initial charge of 3.75%, of which 3% is intermediary commission and has an annual management charge of 0.75%, which pays 0.25% renewal.
The original share class had a 2% front end load and a 0.5% annual management charge. The new share class has been launched to provide a range of packages attractive to both discretionary asset managers and the wider intermediary market, with an institutional share class to follow.
David Sachon, managing director of retail at Threadneedle, said: 'The tax treatment of bond funds makes them more attractive to many Isa investors than equity-based funds. By creating this new retail share class we are opening the fund to more intermediaries and their clients.'
The Threadneedle Corporate Bond Fund, managed by Ted Bacon since its July 1995 launch, has delivered top quartile returns over the five years to 9 November, up 50.84% on a bid to bid basis, compared to a UK corporate bond sector average of 46.92%.
Over the three years to 9 November the fund has slipped to second quartile and over one year to the same date, third quartile, returning 18.8% and 9.06% bid to bid, respectively, compared to sector averages of 18.55% and 9.06%.
The £281.89m fund is managed in a risk averse style, primarily investing in single A minus or above investment grade bonds. Diversification reduces stock specific risk, with the fund typically holding around 85 issues and neutral duration relative to the FTSE All Stocks Index, which is used as the fund's benchmark.
Despite its relatively defensive stance, the fund has a slightly above average beta of 1.03%, compared to a sector average of 1%.
Sector is changing
Offer stands until 31 December
Lisa used as 'top-up'
Two FCA consultation papers
Transfer from PPP to SIPP