Wealth Manager - the site for professional investment managers

Register to get unlimited access to all of Citywire’s Fund Manager database. Registration is free and only takes a minute.

Dimensional gives forlorn bond fund a global makeover

2 comments
Dimensional gives forlorn bond fund a global makeover

Dimensional has proposed changing the mandate of its £154 million Sterling Ultra Short Fixed Income fund.

Over the past three years the fund has returned 2.9%, compared with an average of 8.4% for the Citywire Sterling Short Term Bonds sector.

Dimensional now plans to switch the fund from being sterling focused to having a global remit, and to remove its 30% cap on non-sterling investments.

The average constituent of Citywire’s Global Short Term Bonds category has returned 5.8% through the past three years. The best performer in that sector has been another Dimensional product, the £2.5 billion Global Short Dated Bond fund, which has delivered 11.2%.

‘The directors believe that it will be in the best interests of shareholders in the fund to allow additional flexibility in the investment policies,’ Dimensional wrote to investors. ‘The purpose of this change is to widen the eligible universe of securities in which the fund can invest.’

The group added: ‘While there is a proposed change to the breadth of the eligible universe, the general investment approach of the Fund will not change.’

The proposals will now be put to a shareholder vote on 24 April 2014; if they are approved, the fund will be renamed as the Global Ultra Short Fixed Income fund.

The costs of implementing the changes, as well as the costs of securing all necessary regulatory and other approvals, will be borne by the fund.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Play WMR: Why Russia will lose this war

WMR: Why Russia will lose this war

Author and journalist Adam Lebor believes a perfect storm is brewing when it comes to the Russian economy. .

Play WMR: Gerard Lyons warns Asia is the real risk, not Russia & Ukraine

WMR: Gerard Lyons warns Asia is the real risk, not Russia & Ukraine

Chief economic adviser to London mayor Boris Johnson outlines the geo-political risks in Asia and explains why the risk of another eurozone crisis must not be underestimated.

Play Japan's slump, the umbrella revolution and the battle for Brazil

Japan's slump, the umbrella revolution and the battle for Brazil

With the arrows of Abenomics appearing to be missing their targets and political uncertainty rife in Hong Kong and Brazil we take a look at investor sentiment in this week's Investment Pulse

Your Business: Cover Star Club

Profile: The adviser that tempted Robin Minter-Kemp on board

Profile: The adviser that tempted Robin Minter-Kemp on board

It is rare to meet an impassioned individual who is willing to bang the drum for investment advisory right now

Wealth Manager on Twitter