The 52m vehicle will convert from a Nurs (non-Ucits retail scheme) to Ucits III on April 30 after a shareholder vote last month.
This means that Jim Leaviss, the fund manager, must operate within slightly different investment parameters. Previously, Global Macro Bond was run as a fund of funds, with the manager able to invest in both funds and individual securities with no restrictions on weightings. Now he will only be able to invest up to 10% in funds, which will allow other fund of funds to hold the vehicle.
Jonathan Willcocks, the managing director of global sales, says the change is being made in response to demand from multi-managers. There should be no impact on the funds performance, he adds. Jim will just buy the underlying securities [instead of a fund] so in effect it will work out cheaper. So there should be no impact on performance – it should actually be a benefit, Willcocks says.
The Global Macro Bond fund is one of the last in M&Gs stable of products to be converted to Ucits. Willcocks says the market environment and popularity of fixed income funds mean the timing is right.