Why Legal & General for Fixed Income Funds?

Legal & General is amongst the leading fixed income fund managers in the UK. We currently manage in excess of £107 billion in fixed income - over £67 billion of which is actively managed fixed income assets (as at 30 June 2011)

The fixed income team is made up of over 30 experienced professionals, who are ‘market specialists’ responsible for specific sections of the bond market. In addition to the Dynamic Bond Trust, we offer both actively managed and index tracking fixed income funds.

Expert team: fund manager Richard Hodges - with 21 years’ experience in the sector - is supported by over 30 fixed income specialists. They in turn are part of the fixed income team at Legal & General Investment Management who actively manage over £67 billion of investments, as at 30 June 2011.

Why the Legal & General Dynamic Bond Trust?

The Dynamic Bond Trust is a flexible, long-term total return bond fund. Richard Hodges and his team fully exploit the opportunities afforded under UCITS III regulations to seek the best investment opportunities around the globe. Unlike many fixed income funds, this is not merely limited to investment-grade corporate debt. The team will invest in sovereign debt, high-yield and emerging market bonds, preference shares (only those rated by Moody’s and/or Standard & Poor’s) and cash, in an effort to achieve the highest returns possible over the long term.

They also use OTC swaps, hedging and derivatives in a flexible ‘alpha’ approach to income, growth and risk management. It’s this innovative approach, wide range of asset types and expert management - combined with the broad fixed income expertise of Legal & General - that makes this fund really stand out.

Why add it to an existing portfolio?

Fixed income funds are often added to a portfolio to provide some ‘stability’ - reasonable income with low volatility. But in the face of recent market turbulence, many may have failed to provide the former. The Dynamic Bond Trust can be characterised as an “all-weather” fund. The wide range of assets and tools at the management team’s disposal give it the opportunity to achieve positive returns even when the wider Bond market is deteriorating. By selecting it as part of a diversified portfolio, your clients can benefit from these potential positive returns as part of a wider investment strategy.