Square Mile downgrades trio of Richard Woolnough funds
M&G Optimal Income, Corporate Bond and Strategic Corporate Bond funds downgraded to an A rating after consistent underperformance
Square Mile has downgraded a trio of funds, worth over £7bn, run by M&G’s Richard Woolnough, alongside a £264m Legg Mason global bond fund, from AA to A in its latest ratings round-up.
Woolnough’s £2.2bn Optimal Income, £3.1bn Corporate Bond and £2.1bn Strategic Corporate Bond vehicles have all been demoted in the rankings due to “continued underperformance”.
Despite being billed as “flexible, all-weather fixed income strategies” that can outperform no matter the economic cycle, Square Mile said Woolnough’s duration positioning “has become something of a structural position” creating an “unintended bias reducing the flexibility of the funds to adapt to evolving market conditions”.
Which UK equity income funds saw yields shrivel during the coronavirus pandemic?
portfolio-adviser.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from portfolio-adviser.com Daily Mail and Mail on Sunday newspapers.
IW Long Reads: Burning ambition or crude awakening? Oil giants M&A plans for renewables firms fuel energy transition debate
investmentweek.co.uk - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from investmentweek.co.uk Daily Mail and Mail on Sunday newspapers.