Standard Life Investment head of fund of funds Bambos Hambi has sold his remaining holdings in Richard Woolnough’s £6bn M&G Corporate Bond fund due to concerns over its size and flexibility.
Hambi has been reducing the allocation to the fund in SLI’s five-strong MyFolio Multi Manager range for some time and disposed of the “tiny residual holding” by the end of the first quarter.
The manager says: “We like the process and the team there meets all our criteria. We are just concerned about the size of assets and the lack of flexibility, where we think now it is more important to be very much flexible with what is going on around the world and the lower yields on offer in the corporate bond space.”
In July last year, M&G said it was looking at ways to stem flows into the corporate bond fund and the M&G Strategic Corporate Bond fund, which is also managed by Woolnough, as their rapid growth was making it more difficult for the manager to implement his investment views.
Hargreaves Lansdown senior investment manager Adrian Lowcock says: “Other fund managers are keeping hold of Woolnough because if you want exposure to corporates, he is considered the best guy to have exposure through. But given where we are in the corporate bond space, looking for a product with the most flexibility is probably key.”
FE Analytics shows M&G Corporate Bond has shed the most money from the IMA £ Corporate Bond sector over the past three months, with outflows of £339m.