Axa Investment Managers

UK Corporate Bond Fund
Type: Oeic
Aim: Income and growth by investing mainly in investment-grade UK corporate bonds
Minimum investment: Lump sum £1,000, monthly £50
Investment focus: 100% corporate bonds
Isa link/Pep transfers: Yes
Charges: Initial 5%, annual 0.75%
Commission: Initial 3%, renewal 0.5%
Tel: 020 7003 1234
Io Investors has unveiled the Io Inflation Plus fund, an Oeic fund of funds that aims for income and capital growth of 5% above UK inflation.
The fund will achieve its objective by investing in funds that in turn invest globally in corporate and government bonds and equities. It will be managed by PSolve Asset Solutions, a sister company of Io Investors. PSolve is an investment adviser that creates tailored investment portfolios for company pension schemes, charities, local authorities, financial advisers and insurance companies.
PSolve is headed by Mike Faulkener, who has 11 years’ experience in consulting and asset allocation. He will be assisted by Carol Allison, who has eight years’ experience in asset allocation and manager research. Faulkener and Allison will take into account economic conditions, market valuations and preservation of capital when deciding how much should go into each asset class.
This fund gives retail investors a chance to benefit from institutional-style asset allocation and fund management. The fund’s freedom to use any asset class, any fund manager and any management style may be attractive as market conditions change. However, some advisers may feel uncomfortable with recommending a fund that has no constraints, especially as they have no input when asset allocation decisions are made.