Legal & General Dynamic Bond Trust

Reasons why

• The Dynamic Bond Trust is a strategic fixed income fund designed to produce a total return
• Aims to achieve first quartile performance in the IMA Sterling Strategic Bond Sector
• Unconstrained approach: seeking high quality fixed income investment opportunities globally, under UCITS III regulations
• Flexible management: can react quickly to market or individual asset movements, using a wide range of sophisticated tools - hedging, derivatives and OTC swaps - both to generate alpha and actively manage risk
• 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 £60 billion of investments, as at April 2010.

Philosophy and approach

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’ll 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 potentially benefit from these positive returns as part of a wider investment strategy.

What are others saying about the Dynamic Bond Trust?

“There is more to this fund than meets the eye, offering investors a route into an investment that could deliver solid long-term returns while keeping risk at bay”

Meera Patel, Senior Funds Analyst, Hargreaves Lansdown

"We believe that the manager's skills and experience combined with Legal & General Investment Management's resources renders this an attractive strategic bond proposition."

Gill Hutchison, Investment Research Director at OBSR

How and where can you buy it?

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