OMGI expands bond range with CoCos fund

First CoCos fund for OMGI

Laura Dew
clock • 2 min read

Old Mutual Global Investors has launched a bond fund investing in "unloved" contingent convertible bonds (CoCos) for corporate bond manager Lloyd Harris and equity analyst Rob James.

The Old Mutual Financials Contingent Capital fund will typically look to invest at least 75% in high-quality CoCos with up to 25% in a combination of equity instruments, collective investment schemes, cash, government or other bonds.  TwentyFour AM's Kirk on the attraction of CoCos CoCos were designed following the financial crisis as a way to increase banks' ability to bear losses beyond their equity buffers. They typically offer a higher rate of interest than traditional bonds, lower volatility than European bank equities and can act as a good income diversifier in portfolios. Th...

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