Solus is to merge its £6.4m Sterling Corporate Bond and £22.8m High Yield funds and rename it the St...
Solus is to merge its £6.4m Sterling Corporate Bond and £22.8m High Yield funds and rename it the Sterling Bond fund.
This is to take place as part of a conversion of the group's unit trust range into an Oeic. As part of this three existing unit trusts, Gilt Growth, Gilt Income and Short Dated Gilt, will become Oeics.
The unitholder vote on the changes takes place on 12 February and assuming it succeeds, the conversion will happen on 17 February. Kevin Doran, who runs Sterling Corporate Bond and High Yield, said the planned change in name to Sterling Bond, is to reflect the fact the portfolio will have greater exposure to investment grade debt.
Fund manager Kevin Doran said the High Yield fund is largely made up of investment grade bonds while its current name gives the impression that the portfolio buys higher risk paper. He said: 'The fund only buys investment grade debt so although it aims to offer consistently high yields, we felt we should change the name.'
Solus High Yield has returned 3.3%, offer to bid, over the 12 months to 13 January.
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