Fleming Unit Trust Management looking to launch a corporate bond unit trust in September, writes Jam...
Fleming Unit Trust Management looking to launch a corporate bond unit trust in September, writes James Thorneley.
The group intends to offer investors a yield at launch of around 7.5% and the majority of the portfolio will be invested in the UK.
The launch of the fund should fill a gap in the Flemings product range.
The group feels the product is necessary as many of its competitors already offer similar products in their Isa plans.
Flemings has relatively little exposure in corporate bond products offered to the IFA market but it has experience of corporate bonds through its segregated portfolios.
At present the group offers the retail market S&P High Income fund and the S&P Extra Income fund. Both of these funds have exposure to corporate bonds.
The £112.8m High Income fund is managed by Peter Clelland and offers a yield of 7.38%. It has had a good performance record, in recent times.
According to Micropal, over the one year period the fund was ranked eight out of 69 and rose by 5.2%. This compared with an average rise of 2% in the UK General Bonds sector. Over three years it is ranked 19 out of 54 funds.
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