Bestinvest backs M&G bond funds decision

26 July 2012 | By Rob Langston

Bestinvest senior investment adviser Adrian Lowcock has backed M&G’s decision to slow inflows into its corporate bond range, announced earlier this week by fund manager Richard Woolnough.

Lowcock says: “I think this news is a reflection of the current market conditions and a lack of choice in the corporate bond space. M&G, along with Invesco and Fidelity,are dominant in the corporate bond space.

“In addition, liquidity in the bond market has been tight for some time making it harder for fund managers to allocate money. This seems a prudent move by M&G to ensure they can run the portfolio effectively.”

Woolnough announced the move in an adviser fund update, revealing that inflows into its investment-grade range had made it difficult to implement his investment views.

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