On Wednesday 9 March 2011, the multi-award-winning Old Mutual Global Bond Feeder Fund scooped another Morningstar award! This means that it is the best-performing unit trust on a risk-adjusted basis in its Morningstar category - Global Bond ZAR/NAD.
In a world that has been characterised by low interest rates and currency volatility, the unit trust delivered a solid three-year return of 4.85% p.a. to 31 December 2011 — nearly 3% more than the category average, of 2.04% p.a.
By investing in an array of fixed-income investments from across the globe, Stewart Cowley, head of Fixed Interest at Old Mutual Asset Managers (OMAM UK), aims to deliver a both capital growth and high income yields.
The basis of the Morningstar Awards
Morningstar awards unit trusts based on risk-adjusted performance. This means that they are assessed according to how much investors are rewarded in the form of returns relative to the amount of risk that the portfolio manager took in order to deliver those returns. The awards are calculated by a weighted average of one-year (25%) and three-year (55%) performance and risk-adjusted three-year returns (20%).