A stellar year for the Old Mutual Total Return Bond Fund

World renowned investor Bill Gross continues to outperform

Just over a year ago, on 6 July 2015, Old Mutual Global Investors welcomed Bill Gross back as fund manager of the $330m[1] Old Mutual Total Return USD Bond Fund (the Fund).

Heading into the second year of managing this fund under Janus Capital Group, while facing a fairly stagnant economic environment and with the possibility of de-globalisation, Bill said:

“Worry for now about the return ‘of’ your money, not the return ‘on’ it. Our Monopoly-based economy requires credit creation and if it stays low, the future losers will grow in number. Until governments can spend money and replace the animal spirits lacking in the private sector, then the Monopoly board and meagre credit growth shrinks as a future deflationary weapon.”

When asked where he was looking for value in the bond market, he added:

“Sovereign bond yields at record lows aren’t worth the risk and are therefore not top of my shopping list right now; it’s too risky. Low yields mean bonds are especially vulnerable because a small increase can bring a large decline in price.”

He also commented about his time as an investor, saying:

“In an industry driven by facts and figures, stats and claims, here is another; I am heading very close to marking a half century of financial industry experience. Yes, much has changed in those near on five decades but for every challenge there has been an equal measure of opportunities. This portfolio can invest across global fixed income markets with the flexibility to utilise the high conviction views that me and the team have, in order to capitalise on those challenges and opportunities in a balanced way. Each day seems to bring fresh investment prospects, though all viewed with a cautionary caveat at this time.”

The fund seeks to maximise total return consistent with preservation of capital and prudent investment management.

Ranking in the 1st quartile, the Fund has returned 7.61% against the benchmark’s return of 6.97%.[2]

Warren Tonkinson, managing director, Old Mutual Global Investors comments:

“We were thrilled that we were able to welcome back Bill as steward of this fund, and a year on the performance numbers speak for themselves. The past year has thrown up a number of economic curve balls which Bill and his team have been able to deal with, if not avoid, thanks to their vast experience of managing bonds throughout complex market conditions.

“Our thanks go to Bill for steering this fund positively through ‘choppy waters’. We look forward to working with Bill and the team for many years to come.”


Notes to editors:

1 As at 30June 2016

2 Source: Morningstar as at 5 July 2016

Old Mutual Global Investors:

Old Mutual Global Investors has grown strongly since its creation in August 2012 and now has assets under management of £26 billion (as at 31 March 2016).  The team consists of 258 industry professionals, including a team of 64 investment professionals. As part of Old Mutual Group it has a strong financial parent to support the activation of its business strategy. Old Mutual Global Investors is the asset management division of Old Mutual Wealth. To find out more information please go to:  www.omglobalinvestors.com

Old Mutual Wealth

Old Mutual Wealth is the leading wealth management business in the UK and internationally, helping to create prosperity for the generations of today and tomorrow.

It has an adviser and customer offering spanning:

  • Financial advice delivered by the Intrinsic network in the UK and AAM Advisory in Singapore
  • Platform based wealth management products and services delivered by Old Mutual Wealth in the UK and Old Mutual International globally
  • Asset management solutions delivered by Old Mutual Global Investors
  • Discretionary investment management delivered by Quilter Cheviot.

Old Mutual Wealth oversees £107.1 billion in customer investments (as at 31 March 2016).

Old Mutual Wealth is part of Old Mutual plc a FTSE 100 group that provides life assurance, asset management, banking and general insurance. Old Mutual is trusted by more than 18.9 million customers across the world and has a total of £327.9 billion assets under management (as at 31 December 2015).

This press release is for journalists only and should not be relied upon by financial advisers or customers. Investments may fall or rise in value and investors may not get back what they put in.