M&G Change Manager on Bond Funds

M&G has shaken up its bond fund team, with Head of Fixed Interest Jim Leaviss relinquishing manangement of two fixed income funds

Emma Wall 4 February, 2014 | 4:34PM
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M&G's Jim Leaviss is stepping aside to let more junior members of the fixed income team run two of his bond funds.

The £773 million M&G Gilt and Fixed Income Fund will now be run by Mike Riddell and deputised by Leaviss, and the £837 million Inflation-Linked Corporate Bond fund will now be run by Ben Lord.

Leaviss will concentrate on the M&G European Inflation Linked Corporate Bond fund, which he had previously co-managed with Lord. 

Morningstar analysts have placed the Gilt & Fixed Interest Income Under Review.

“Whilst we draw comfort from the continuous involvement of Leaviss and the support provided by the wider fixed income team at M&G, we feel it is prudent at this stage to place the fund’s rating Under Review,” said a fixed income analyst. “We will be meeting with Mr Riddell in due course to discuss the impact of these changes.”

Leaviss, who is head of the M&G Retail Fixed Interest team said that since 2009 the team had doubled in size, reflecting the client demand.

“With the addition of extra resource and experience to the team it is now appropriate to make adjustments to fund responsibilities,” he said. “We believe these changes will allow the team to become even more focussed on asset classes than ever before, enabling fund managers to play to their strengths.”

Such was the demand for corporate debt that in July 2012, fixed interest specialists M&G had to turn down a £1 billion institutional mandate as they simply had nowhere to put the cash.

The asset manager held a conference call with financial advisers and investment platforms warning them off recommending their £6 billion Gold Rated Corporate Bond fund. Although M&G refused to confirm the call, it was understood that the fund had reached capacity.

Since then, the 'Great Rotation' has meant fund flows have favoured equities, easing the pressure on bond managers and helping create some liquidity in a swollen asset class.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
M&G Corporate Bond GBP R Acc135.26 GBP0.21Rating
M&G Gilt & Fixed Interest Inc GBP A Acc458.77 GBP0.33Rating
M&G UK Inflation Lnkd Corp Bd GBP R Acc128.96 GBP0.07Rating

About Author

Emma Wall  is former Senior International Editor for Morningstar

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