Lloyds TSB Offshore Fund Managers has launched its Euro High Income fund, which will target an incom...
Lloyds TSB Offshore Fund Managers has launched its Euro High Income fund, which will target an income of 4.5%.
The product is the euro version of the group's Sterling High Income fund.
Scottish Widows Investment Partnership, the asset management arm of the Lloyds TSB Group, manages the portfolio, which holds investment grade Eurobonds.
The product is Jersey-domiciled and is distributed in the Channel Islands and the UK. However, at a later stage the group plans to register the product in Malta and Cyprus for distribution to expatriates.
As part of this proposal Lloyds TSB Offshore is opening a Cyprus office.
Bron Lysiak, manager intermediary sales at Lloyds TSB Offshore, said: "We are traditionally an offshore banking arm, which has strong links with expatriates.
"We were receiving requests from our expatriate clients living in Europe for a euro-dominated version of the product because both countries will be using this currency in 2008."
Nigel Jeacock-Fewtrell, director of Lloyds TSB Offshore, added: "Intermediaries are seeing the euro income needs of their clients become more significant.
"As the eurozone expands, and with more people retiring and relying on investment income, we think intermediaries will see the value of this new fund."
The minimum investment is E5,000. There is an upfront fee of 4% and an annual management charge of 0.875%.key points
Lloyds TSB Offshore launches Euro High Income fund
It is a version of the Sterling High Income portfolio
The group plans to target expats in Malta and Cyprus
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