UK Bond

Old Mutual Corporate Bond

This is an actively managed UK corporate bond fund, managed by Stephen Snowden.  Snowdon looks to select holdings with good credit fundamentals and like to be able to exploit short term price opportunities.  The fund is well diversified, typically holding around 90 stocks.  Unlike many other bond funds, Snowden’s fund does not have any formal benchmarks; it simply aims to be in the top quarter of bond funds in any rolling 12 month period.

 

Fund Manager		Stephen Snowden
IMA Sector		IMA UK Corporate Bond
Fund Size (£ million)	£1,050	Initial Charge	3.50%
Launch Date	17/06/2000	Charge via Chartwell	0.00%
Yield	5.20%	AMC	1.10%

Source: Financial Express 01/01/08 

M&G Optimal Income

Managed by Richard Woolnough the Optimal Income Fund seeks to generate total returns from a portfolio of predominantly sterling denominated debt instruments, such as government and corporate bonds.  Unlike some other bond funds, however, the Optimal Income may hold equities (up to 20%) and use derivates – typically futures – to enable the manager to achieve his total return objectives.  Hence the fund has the potential to outperform regardless of whether bonds are in or out of favour with the market.

 

Fund Manager		Richard Woolnough
IMA Sector		IMA UK Other Bond
Fund Size (£ million)	£128m	Initial Charge	4.00%
Launch Date	08/12/2006	Charge via Chartwell	1.00%
Yield	5.40%	AMC	1.25%

Source: M&G 01/01/08 

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Disclaimer
The funds covered represent only a very small proportion of the funds that you could potentially invest into. You should consider all of your investment options before making any decision to invest.