Principal launches “unique” monthly income bond fund

Wallet_UKPrincipal Investment Management launched an investment-grade corporate bond fund last week that offers monthly income and targets an annual yield of 5% after fees. The Principal Monthly Income Investment Grade Bond Fund is designed to take a cautious approach, combining the potential for capital growth with a monthly income. It invests in both corporate bond and government bond markets, including in emerging markets. The fund is available in an ISA tax wrapper, making it suitable for UK retail investors, and Principal says the launch makes its fixed income ideas available to a wider range of people. Due to very specific limitations on the credit quality of the investments the fund can make, it should be among the lowest risk strategic bond funds in the market, the firm says. Craig Veysey, who runs directly invested fixed income investments at Principal, said: “We think our new fund is unique in the way it combines monthly income provision with investment grade bonds. Principal manages about £350 million (€420 million) of fixed income in client portfolios. ©2012 funds europe

Executive Interviews

INTERVIEW: Put your money where your mouth is

Jun 10, 2016

At Kempen Capital Management, they believe portfolio managers should invest in their own funds. David Stevenson talks to Lars Dijkstra, CIO of the €42 billion manager.

EXECUTIVE INTERVIEW: ‘Volatility is the name of the game’

May 13, 2016

Axa Investment Managers chief executive officer, Andrea Rossi, talks to David Stevenson about bringing all his firm’s subsidiaries under one name and the opportunities that a difficult market...


ROUNDTABLE: Beyond the hype

Oct 13, 2016

The use of smart beta investing continues to grow. Our panel, made up of both providers and users, discusses what the strategy actually means, how it should be used and the kind of pitfalls that may arise when using this innovative investment technique.

MIFID II ROUNDTABLE: Following the direction of travel

Sep 07, 2016

Fund management firms Aberdeen and HSBC Global meet with specialist providers to speak about how the industry is evolving towards MiFID II.