Smith & Williamson head of multi-manager James Burns has dropped Richard Woolnough’s £12.6bn M&G Optimal Income fund from the £34m MM Endurance Balanced fund.
Burns says he sold the M&G Optimal Income fund to reduce exposure to the credit space and reinvested in two investment trusts, the Harbour Vest Global Private Equity and the Forterra Trust.
He says: “The Harbour Vest Global Private Equity fund is trading at a discount of 30 per cent and the Forterra Trust, which invests in commercial property in China, is trading at a big discount of about 65 per cent.”
Charles Stanley head of investment research Ben Yearsley says there is concern about the size of Woolnough’s fund.
Yearsley says: “It is a massive fund and there are clearly concerns about its size and whether Richard Woolnough can continue managing it in the same format.”