Principal launches first fund

Principal Investment Management has launched its first fund, a monthly income bond mandate.

Craig Vescey
Craig Vescey

The Principal Monthly Income Investment Grade Bond fund will aim to provide income, which can be drawn monthly, alongside capital growth by investing in investment-grade debt securities, corporate bonds and government bonds.

The fund’s net projected annual distribution yield at launch is expected to be above 5%.

Craig Veysey, who has been responsible for directly invested fixed income investments at the discretionary management group since March 2009, will run the fund.

He says: “The investment-grade focus of the fund underpins the fund’s conservative approach within the strategic bond sector and Principal’s commitment to investing in higher-quality securities for its clients.

“We will actively seek strategic opportunities in corporate and government bonds both in the UK and overseas, including emerging markets.”

Veysey adds: “The fund will target a top quartile performance versus the IMA Sterling Strategic Bond sector.”

The fund, which launched on March 1, is expected to have approximately £40m invested at the outset. Principal already manages about £350m of fixed income in client portfolios.

Minimum investment in the fund is £500, which carries an annual management charge of 1%, and an initial charge of 3%.