Royal & SunAlliance Investments plans to bring out a high yield corporate bond fund next month with ...
Royal & SunAlliance Investments plans to bring out a high yield corporate bond fund next month with the yield expected to be up to 11.5%.
The Oeic, to be called the Maximum Income Bond fund, is to be launched on 20 November and will have the majority of the portfolio in sub-investment grade stock.
The fund, to be managed by Fatima Luis, will have around 70% in B rated corporate bonds, around 5% in CCC rated stock with the remaining 25% split between BB and BBB.
The exact target yield has yet to be finalised. The broad geographic exposure of the Maximum Income Bond fund will be around 10% in the US, 50% in Europe and 40% in the UK.
The initial charge on the fund will be 5% and it will carry a 1% annual management charge.
IFA commission will be 4% initial and 0.25% renewal will be available.
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