Woolnough reduces gilts

M&G manager preferring corporates over high yield because of favourable supply situation

Richard Woolnough has been reducing the M&G Corporate Bond fund's exposure to high yield and gilts since taking the helm at the start of the month. He has also been selling down the number of holdings in the £1.3bn portfolio, improving its credit quality exposure and lengthening the duration bias. Woolnough's Strategic Bond fund has now been up and running for almost a month and has garnered assets of £32.5m. He is favouring high quality investment grade bonds in both portfolios primarily due to a more favourable supply and demand dynamic relative to gilts. "The supply balance favours...