UK - Threadneedle Investments is launching four new versions of its fixed income funds to give investors returns gross of tax.
The move follows changes to the Finance Act 2002 which enables investment managers to now offer gross-of-tax returns to schemes on their relevant funds.
Threadneedle has taken the lead on this development, launching new share classes of its UK Corporate Bond Fund, Strategic Bond Fund, High Yield Fund and its Global Bond Fund.
The firm claims the move will provide cashflow benefits to schemes and reduce the administrative burden of reclaiming income tax from the Inland Revenue.
Head of distribution David Sachon said: “We pride ourselves on being one of the first in the industry to use new regulations that benefit our clients.
“We have offered gross accumulation share classes to European investors since 1998, now the new share classes will be of considerable benefit to a range of UK investors.”
The minimum institutional investment will be £500,000 and, with the exception of the global fund, the new share classes will be launched on December 8.
The global fund share class will be available from March 7, 2004.
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