Derivatives and other complexities in Man GLG Dynamic Income

masonic

It looks like this fund is hard closing: https://www.man.com/documents/download/bcbc0-0a4e2-9de40-c02c0/Man_Dynamic_Income_Investor_Notice_English_13-10-2025.pdf

aroominyork

Many thanks. I hold Class IH and planned, next month, to sell my Accumulation units and buy Income units. It looks like I will not be able to do that without buying into a more expensive class. The fund trades daily at 2100 and, from memory, if I sell tomorrow I would not have the funds in my account until either Thursday (which would be OK) or Friday (which would not) afternoon. I guess I could sell something which clears more quickly and buy on Wednesday. Is that correct?

Also, what does this mean please  "... a 10% genuine rebalancing allowance on their current holdings in the Existing Share Classes."

masonic

aroominyork said:

Many thanks. I hold Class IH and planned, next month, to sell my Accumulation units and buy Income units. It looks like I will not be able to do that without buying into a more expensive class. The fund trades daily at 2100 and, from memory, if I sell tomorrow I would not have the funds in my account until either Thursday (which would be OK) or Friday (which would not) afternoon. I guess I could sell something which clears more quickly and buy on Wednesday. Is that correct?

Also, what does this mean please  "... a 10% genuine rebalancing allowance on their current holdings in the Existing Share Classes."

You could try purchasing first. If you can bear to double up for a day or two. I guess you might wish to wait for settlement to be sure.

Presumably there will be some mechanism for an ad-hoc purchase of up to 10% of your existing holding if you assert it is necessary because your other holdings have all performed better. I have no idea how that would work in practice or whether any DIY platforms would cooperate.

aroominyork

masonic said:

aroominyork said:

Many thanks. I hold Class IH and planned, next month, to sell my Accumulation units and buy Income units. It looks like I will not be able to do that without buying into a more expensive class. The fund trades daily at 2100 and, from memory, if I sell tomorrow I would not have the funds in my account until either Thursday (which would be OK) or Friday (which would not) afternoon. I guess I could sell something which clears more quickly and buy on Wednesday. Is that correct?

Also, what does this mean please  "... a 10% genuine rebalancing allowance on their current holdings in the Existing Share Classes."

You could try purchasing first. If you can bear to double up for a day or two. I guess you might wish to wait for settlement to be sure.

Yup, that's what I figured. Alternately, given how smoothly the fund's price has performed, if it carried on in that way I could hold and sell Acc units to generate my income. If there is a downturn I could sit it out until recovery. 

masonic

aroominyork said:

masonic said:

aroominyork said:

Many thanks. I hold Class IH and planned, next month, to sell my Accumulation units and buy Income units. It looks like I will not be able to do that without buying into a more expensive class. The fund trades daily at 2100 and, from memory, if I sell tomorrow I would not have the funds in my account until either Thursday (which would be OK) or Friday (which would not) afternoon. I guess I could sell something which clears more quickly and buy on Wednesday. Is that correct?

Also, what does this mean please  "... a 10% genuine rebalancing allowance on their current holdings in the Existing Share Classes."

You could try purchasing first. If you can bear to double up for a day or two. I guess you might wish to wait for settlement to be sure.

Yup, that's what I figured. Alternately, given how smoothly the fund's price has performed, if it carried on in that way I could hold and sell Acc units to generate my income. If there is a downturn I could sit it out until recovery. 

Also, the Acc units give you a way to increase your investment, whereas you'd struggle to reinvest distributed income if you wanted to do so. I'd say hanging onto Acc is better in this situation as you can still choose to withdraw.

aroominyork

I just re-opened the page to say just that. With fixed interest you have to plan for no capital gain, so I intended to top up the fund periodically. As you say, doing nothing seems the best option. Thanks again for posting about this.

aroominyork

Are you tempted to get in on the ground floor, masonic?

masonic

aroominyork said:

Are you tempted to get in on the ground floor, masonic?

I already have some tucked away in my workplace pension, bought around the time I decided to rotate out of my US bond exposure. I didn't want to reinvest everything in IL gilts. It happened to be there, and I had researched it following previous discussions about it...

My junk bond fund of choice is the investment trust NCYF, as it tends to get beaten down to an attractive discount during the bad times, so I will probably revert to form if another opportunity presents itself. I wouldn't dream of buying in while it's trading at a premium as it is now.

It was an email from my pension provider that put me onto the closure. It seems other providers have not been so communicative.