Scottish Widows is launching a corporate bond unit trust investing in European high yield and invest...
Scottish Widows is launching a corporate bond unit trust investing in European high yield and investment grade sterling corporate debt.
The fund, called Scottish Widows Strategic Income Trust, is to be managed by Gareth Quantrill of Scottish Widows Investment Partnership, with an expected investment split of 70% in UK investment grade corporate bonds and 30% in European high yield. The fund will have an estimated gross redemption yield of 6.33% and running yield of 7.14%, with income paid monthly.
The fund is available as a unit trust investment, Isa or Pep transfer. The initial charge is 3.5% and the annual management fee, including expenses, is 1.43% for unit trust, Isa and Pep investments. IFA commission is 3% initial with 0.5% renewal. The minimum lump sum investment is £1,000 and the minimum regular investment is £50.
The trust is being launched to complement Scottish Widows' existing corporate bond range. This includes Scottish Widows High Income Bond Trust, which has an AA rating from Standard & Poor's and is managed by MacKay Shields, a subsidiary of New York Life. Its range also includes the Scottish Widows Corporate Bond Trust, also managed by Quantrill.
The launch of Strategic Income Trust coincides with Scottish Widows' campaign to promote income-producing funds for the Isa season.
The forces at play in investment - most obviously, regulatory change, uncertain markets and shifting demographics - are as strong today as they were when Professional Adviser launched its sister magazine Multi-Asset Review in 2017.
Regulator has visited some firms already
Platforms react to Fidelity blocking Income Focus purchases
Chris Hill's letter to Treasury
Cash balance surges