Edinburgh Fund Managers is looking to change the target yield and the portfolio composition of its U...
Edinburgh Fund Managers is looking to change the target yield and the portfolio composition of its UK Fixed Interest Oeic, writes James Thorneley.
The target yield on the £20.4m fund is 7.07% and Edinburgh is keen to have a high yield vehicle for the Isa season.
Nigel Whittingham, group marketing and sales director at Edinburgh, said they would be looking at the fund in the light of various corporate bond funds launched last year providing yields of 8%. He added: "A lot of income funds are offering a higher yield than ours. The problem is the portfolio holds a lot of preference shares which are hard to get rid off."
Whittingham did not rule out launching a new fund offering a higher yield than the present fund but said his preferred option would be to make changes to the existing Oeic. The frA rated fund, managed by Piers Watson, outperformed its peer group for the three years to 15 December. During the period it was ranked 17 out of 59 in the Micropal UK General Bonds peer group rising by 28.8% compared with an average rise of 26.5%.
For the Isa season Edinburgh is also planning to promote three different growth products, including launching its Classic Portfolio service as an Isa.The service is based around the group's £35.4m Managed Growth Oeic, run by Harry Morgan. Over one year the fund is ranked 10 out of 56 in the Balanced Managed peer group rising by 23% compared with an average rise of 18.1%.
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