View more on these topics

Old Mutual goes for all in one formula


Old Mutual Dynamic Bond Fund

Unit trust

Income and growth by investing in fixed-interest securities

Minimum investment:
Lump sum £1,000,
monthly £250

Investment split:
100% in fixed-interest securities

Isa link:

Pep transfers:
Initial 3.5%,
annual 1.25%

Initial up to 3%,
renewal up to 0.5%

Tel: 0808 100 2715

The Old Mutual dynamic bond fund is a unit trust that invests in a range of fixed-interest securities, including high yield and investment grade corporate bonds, government bonds and convertibles to provide a monthly income.

Bright Financial Services sales director Paul Breaks points out that Old Mutual&#39s international bond and corporate bond funds are good performers. With this fund, Breaks believes there is no need for clients to hold separate gilt and high-yield bond funds. He says: “This is, for all intents and purposes, a managed fixed-interest fund aiming to provide growth and income.”

Breaks believes the monthly high income will be attractive to clients but the net yield of 4.93 per cent is less so. He feels the literature & commission is okay and standard respectively.

Looking at the drawbacks of the fund Breaks says: “The fund can invest in non-investment grade bonds, so there is additional risk of defaults. Also, the charges are taken from income which reduces the yield.” He sees competition coming from distribution funds.

Summing up Breaks says: “This fund has a good, well respected, experienced team led by Theresa Egan. It would complement an equity portfolio but non- investment grade bonds increase the risk to capital.”


Suitability to market: Good
Investment strategy: Good
Charges: Average
Adviser remuneration: Average

Overall 7/10


FSA chairman hits out at law suits

FSA chairman Callum McCarthy has spoken out against the increasing number of law suits brought against the regulator. Speaking at a Mansion House dinner for City leaders McCarthy warned that the growing number of legal challenges against the FSA threatened to add costs and delay decisions for consumers.

ScotEq taking mystery out of underwriting to aid IFAs

Scottish Equitable Protect is relaunching its marketing campaign for its smart underwriting service for the IFA market. The relaunch will emph-asise the increase in efficiency with smart underwriting and increase flexibility for IFAs and includes a new version of ScotEq&#39s Underwriting Today protection magazine. Aegon UK head of underwriting Matt Rann says the aim is […]

Schroders – Schroder S&P High Alpha Portfolio

Type: Unit trust multi-manager fund of funds Aim: Growth by investing in a portfolio of 12-15 funds Minimum investment: Lump sum £1,000 Investment split: 47.3% UK equities, 14.8% Europe ex UK, 9.3% Japan, 9% alternatives, 7.8% Asia ex Japan, 5.8% emerging markets, 5.2% Us, 1% cash Isa link: Yes Pep transfers: Yes Charges:Initial 5.25%, annual […]

Close and Man hedge fund is aiming for 11% return

Close Fund Management and Man Investments have set up a hedge fund product guaranteeing initial capital. The product, which is aimed at investors looking to diver-sify their portfolios away from traditional equities and bonds, is targeting annualised returns of 11-13 per cent over the medium term and annualised volatility of 7-9 per cent. A capital […]

Responsibility Matters

The latest update from the Sustainable Investments Team at Royal London Asset Management, Responsibility Matters, is now available. In this edition the team look at issues such as the growing acceptance of sustainable investing and technology in China. Read the update here: The value of investments and the income from them is not guaranteed and […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment