Alliance Trust to launch bond fund as assets grow

Investment firm Alliance Trust will launch its first fixed income product later this year and diversify equity exposure towards Asia while western growth appears fragile, its chief executive said yesterday.

Katherine Garrett-Cox said the FTSE 100 company will capitalise on investors’ appetite for income products by launching a mainly UK-focused corporate bond fund in the next two to three months after hiring a team of four bond managers from Scottish Widows last year.

The plans were announced as the 120 year-old Trust said total returns for the year to 31 January stood at 22.2 per cent, placing it 34th out of 43 investment companies in its global growth peer group. Assets under management grew to £3bn from £2.6bn at the end of the first half.