UK - Scottish Widows Investment Partnership has launched three bond funds focused on total returns for institutional investors and IFAs.
SWIP – the asset management arm of Lloyds TSB – said the bonds were aimed at investors looking for high performance bond exposure.
By investing in diversified bond portfolios that are less constrained by benchmarks than traditional bond funds, the funds aim to earn more than conventional bond funds while maintaining less volatility and exposure to risk than equities.
The SWIP high yield bond fund will concentrate in sub-investment grade bonds in the US and Europe while also investing in bonds issued by companies and governments in other offshore locations.
The corporate bond plus fund will invest primarily in sterling-denominated investment grade bonds, and the global bond plus fund will invest in bonds issued by governments, public bodies and financial institutions.
Spokesman Andy Frepp said: “There is a growing demand from investors for bond funds that are focused on total return and not as constrained by a benchmark. The three funds complement an already extensive range of bond funds offered by SWIP.”
The minimum investment for each of the funds is £25,000.
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