rudolf wolff launches building society income fund

Rudolf Wolff has launched a fund targeted at investors looking for income in a low interest rate environment and aiming for a net return of 7% per year.

rudolf wolff launches building society income fund


The Building Society Income fund will be distribute its yield bi-annually and aims to secure it by investing in permanent interest bearing shares (PIBS) of building societies.

PIBS are special shares issued by bulding societies that pay a fixed rate of interest and while they cannot be sold back to the society they can be traded on the stock exchange so the prices change.

Rudolf Wolff said recent research by HSBC had showed over 500,000 investors in fixed income products would see their three-year 7% terms expire in the next few weeks.

Paul Gleeson of Arcanum Asset Managment, who will manage the fund, said: "Investors seeking income are currently facing a number of pressing concerns: historically low dividend yields, interest rates at all-time lows, falling real estate yields and uncertain bond and equity markets.

"This fund seeks to address these issues by investing in a diversified portfolio of PIBS, regulated financial instruments issued by Mutual Building Societies. For many investor the fund will provide a great solution."

The fund offers monthly liquidity and has a minimum investment of £10,000.

It can hold PIBS issued by the following building societies: Skipton, Principality, Coventry, Nationwide, Yorkshire, Co-operative Bank, Newcastle, Nottingham and Leeds.

"The current economic turmoil is likely to continue for at least another four years as the excesses of the last ten years are purged ouot of the system. Mutual Building Societies are currently among the strongest financial institutions in the country," Gleeson concluded.



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