Lincoln Unit Trust Managers has launched its first Corporate Bond unit trust to be managed by Goldma...
Lincoln Unit Trust Managers has launched its first Corporate Bond unit trust to be managed by Goldman Sachs Asset Management International (GSAM).
The product is designed to provide a regular income, but this can be reinvested. It is available through an Isa and offers an income yield of 7.11% and has a a gross redemption yield of 6.30%.
Until 30 April, Lincoln is offering lump sum investors a discount of 4.75%, making the initial charge 0.25%. The minimum lump sum investment is £500 and regular savers can invest a minimum of £50 per month.
Commission for IFAs is 3% with 0.5% renewal. The trust has about 90% in investment grade bonds, more than 65% of which is invested in issues with a Standard & Poor's rating of A or above. Only 9% is invested in non-investment grade bonds.
Helen Turner, head of unit trusts at Lincoln, said: "Our strategy is to target most of our resources into investment grade bonds and then concentrate on lower-rated bonds.
"By adding a small number of non-investment grade, high-yield bonds, we can add higher interest rates without significantly increasing the risk."
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