Bond advice

traineepensioner

Hi,

I'm with ii and would like to buy an additional bond fund to accompany my existing Jupiter strategic Bond inc (09Q4). The charges for this fund are 0.73% and it currently yields approx 4%.

I'm looking at the M&G Optimal income inc fund and appear to have a choice of M&G Optimal income Inst inc (J669) or M&G Optimal income R inc (0ZFF). The prices are 151.30 and 117.25 respectively and the charges are 0.91% and 1.16%.:o
Are these both based on the same fund? Are both funds available to me as a retail investor?

Many thanks,

chiang_mai

It appears so, one was launched in 2006 and the other in 2012. https://www.trustnet.com/factsheets/o/j670/mg-optimal-income-inst-acc-gbp

Linton

traineepensioner wrote: »

Hi,

I'm with ii and would like to buy an additional bond fund to accompany my existing Jupiter strategic Bond inc (09Q4). The charges for this fund are 0.73% and it currently yields approx 4%.

I'm looking at the M&G Optimal income inc fund and appear to have a choice of M&G Optimal income Inst inc (J669) or M&G Optimal income R inc (0ZFF). The prices are 151.30 and 117.25 respectively and the charges are 0.91% and 1.16%.:o
Are these both based on the same fund? Are both funds available to me as a retail investor?

Many thanks,

You could possibly invest in them. These are different "classes" of the same underlying fund. Multiple classes are set up with the objective of charging different amounts for different circumstances - eg large scale wholesale vs small scale retail. Typically a platform will only offer one class of a fund, the one with the lowest charges that the platform can agree with the fund manager. If you buy directly from the fund manager you may only be offered a higher charge class as the fund manager needs to cover the costs of dealing directly with the public.

chrisgg

My preferred actively managed bond fund is Liontrust Monthly Income Bond.

Yields 5.6% at a TER of 0.64%.

I'd post the trust net link but apparently I can't as a new user... :huh:

Audaxer

traineepensioner wrote: »

Hi,

I'm with ii and would like to buy an additional bond fund to accompany my existing Jupiter strategic Bond inc (09Q4). The charges for this fund are 0.73% and it currently yields approx 4%.

I'm looking at the M&G Optimal income inc fund and appear to have a choice of M&G Optimal income Inst inc (J669) or M&G Optimal income R inc (0ZFF). The prices are 151.30 and 117.25 respectively and the charges are 0.91% and 1.16%.:o
Are these both based on the same fund? Are both funds available to me as a retail investor?

Many thanks,

I've got the M&G Optimal Income Fund Sterling I Inc (ISIN - GB00B1H05601) which has an OCF of 0.91%. You don't want to be paying 1.16% for another version of the same fund.

traineepensioner

Audaxer wrote: »

I've got the M&G Optimal Income Fund Sterling I Inc (ISIN - GB00B1H05601) which has an OCF of 0.91%. You don't want to be paying 1.16% for another version of the same fund.

That's what I thought. I couldn't understand why II offer both funds at different charges, if they're based on the same fund.

thanks all.

Linton

You may find that if you buy the higher charged fund iii will give you a refund on some of the charges. From memory this is what used to happen. Listing both versions may be due to pre-existing holdings.