OMGI readies high yield bond fund for Johnson

Old Mutual Global Investors is to unveil a high yield fund for Christine Johnson and Bastian Wagner.

The group plans to launch the Old Mutual Monthly Income High Yield Bond fund during the summer, subject to regulatory approval.  The portfolio will aim to deliver a 6%-7% annual yield, with monthly distribution smoothed to give a regular income. The fund’s duration limits will be -3 to 9 years, enabling it to take advantage of rising and falling yield environments, the group said. Johnson (pictured), the group’s head of fixed income, said: “As bank lending continues to contract, there is an increasing supply of good quality, higher yielding issues. The issuing companies are typic...