Brain's Newton Global Dynamic Bond fund to switch sectors

Newton is planning to move Paul Brain's Global Dynamic Bond fund from the IMA Global Bond to the IMA Absolute Return sector.

Brain, who has overseen the £460m fund since its launch in 2006, said the absolute return sector betters reflect the fund's mandate.

Global Dynamic Bond has a total return remit that seeks income through higher yielding corporate and government bonds, and can use hedging instruments including derivatives.

The group said the move is subject to IMA approval. Brain's portfolio has bettered the Global Bond sector average over three years, posting returns of 34.7% against an average 33.9%.

This compares with sector winners like Galia Velimukhametova's GLG Global Corporate Bond fund, which delivered 52.5%, and Mike Riddell's M&G International Sovereign Bond, which returned 52.4% over the same period.

However, the fund's returns are in line with the top performing peers in the Absolute Return sector, with Stephen Thariyan's Henderson Credit Alpha fund posting 35.7% over three years and Colm McDonagh's Absolute Insight Emerging Market Debt fund returning 33.6%.