Morningstar has praised M&G's Richard Woolnough for effectively managing the rapid growth of his Corporate Bond fund but has expressed concerns the fund's TER is well above the category median.
The £4.19bn fund has now been awarded a ‘Superior' rating from the agency which highlighted Woolnough's ability to shift the fund's very large book of assets at key turning points. These included the move to cut bank exposure and increase duration in 2007 and early 2008 which resulted in excellent relative returns, according to Morningstar. However, fears were raised about the TER on the fund, which at 1.17% is a lot higher than the category median of 0.88%. "Fees are another concern-such a large fund should benefit from economies of scale, but this fund's TER is well above the cat...
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