L&G Ratings Under Review on Hodges' Resignation

Morningstar's ratings on Dickie Hodges' L&G Dynamic Bond Trust and L&G Fixed Interest Trust have been placed Under Review following the manager's resignation

Holly Cook 24 April, 2014 | 4:47PM

Morningstar's former Silver rating on Dickie Hodges' L&G Dynamic Bond Trust has been placed Under Review following the manager's resignation from Legal & General. L&G confirmed on Tuesday that Hodges is to work out his notice period and leave the firm at the end of October. Management of the £2 billion Dynamic Bond Trust will pass to senior fixed income manager Martin Reeves, who also manages the L&G High Income Trust.

Hodges joined L&G Investment Management in 2007 and as head of High Alpha Fixed Income, he was responsible for the management of the firm's higher-alpha credit mandates. He has managed the Dynamic Bond Trust since its inception in April 2007, achieving a five-year annualised trailing return of 11%.

Performance has waned somewhat in recent years, however, with the Dynamic Bond Trust returning 15% in total over the three years to April 22, thus only marginally beating the fund’s Barclays Global Aggregate index benchmark, which has risen 14.5% in that time. Accounting for the fund's higher-than-category-average fees, fundholders will have seen personal returns that underperformed not only the fund's chosen benchmark but also both the IMA £ Strategic Bond sector (up 20% in three years) and the Morningstar GBP Flexible Bond category (up 20%).

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
L&G Dynamic Bond R Acc89.71 GBP0.04
L&G Managed Monthly Income R Acc131.10 GBP0.15

About Author

Holly Cook

Holly Cook  is Manager, Morningstar EMEA Websites

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