Christine Johnson, co-manager of the Monthly Income High Yield Bond fund, will focus on fixed- and variable-rate debt securities worldwide and higher-yielding corporate bonds.
It aims to meet the continuing need of clients to access income streams. Ms Johnson said: “As bank lending continues to contract, there is an increasing supply of good-quality, higher-yielding issues.
“The issuing companies are typically from continental – and particularly southern – Europe, long established, with good, free cash flows, healthy balance sheets and credible growth prospects.”
• Domicile: Dublin
• Dividends: Monthly, with a 6-7 per cent annual yield targeted. Dividends will be smoothed
• Managers: Bastian Wagner and Christine Johnson
Paul Coffin, chartered wealth manager, Capital Financial Markets, London:
“I am a bit weary of high-yield bond funds and would urge caution, as people need to remember they are buying into high-risk funds. When rates normalise, people could get hurt. For me, a basket of blue-chip UK equities would be a safer option.”