Stewart Cowley, manager of the Old Mutual Global Strategic Bond Fund, will step down and leave Old Mutual at the end of June 2015. The fund has therefore been removed from the Wealth 150 list of our favourite funds across the major sectors.
Following his departure from Old Mutual Christine Johnson and John Peta will assume responsibility for the fund. Christine Johnson has managed the Old Mutual Corporate Bond Fund since April 2011 and John Peta has 28 years' experience managing global bond and emerging market debt funds. He joined Old Mutual in March 2015 having previously worked at Threadneedle Asset Management where he was a fund manager and Head of Emerging Market Debt.
Under the new managers the fund will have broadly the same objective - to grow capital over the long term and provide an element of shelter during tougher times. It will remain flexible, with the managers having the ability to invest across government and corporate bond markets, foreign exchange markets, and manage exposure to interest rates. However, Christine Johnson and John Peta are likely to take a more diversified approach than Stewart Cowley, though the portfolio could still be concentrated overall. They are likely to focus more on emerging market debt and currencies, while retaining the ability to use derivatives, which adds risk to the portfolio.
We will be speaking with Christine Johnson and John Peta in due course for a full update on their process and how it will be applied to the fund from the end of June 2015. In the meantime we have removed the fund from the Wealth 150, but would stress this should not be taken as a signal to make any changes to a portfolio, providing it continues to meet its objectives.