M&G

Graham French, M&G's popular global equity manager, has committed to run his Global Basics fund until at least 2020, Investment Week can reveal.

The continued squeeze on liquidity in the corporate bond market could lead to the closure of larger funds to investors and even cause parts of the corporate bond and gilt markets to shut down.

ON BONDS

GOSLING'S GROUSE

M&G's Richard Woolnough said the possibility of another £375bn in asset purchases by the Bank of England means gilt yields could remain at record lows for years to come.

The FSA has written to fund houses requesting reports on whether their corporate bond funds could meet redemption demands, amid liquidity concerns in the fixed income market.

The UK is increasingly likely to lose its AAA credit rating - but this may not spell disaster for the domestic bond market, according to M&G's Jim Leaviss.

Strategic bond managers have been reducing high yield exposure in anticipation of a default rate spike in the second half of the year.

UK inflation will not be allowed to fall back to its 2% target because Mervyn King and his colleagues are keen to prevent a disinflationary spiral, according to leading fund managers.

M&G has expanded its multi-asset range of funds with the addition of a defensive portfolio, as part of a wider move to rebrand the range.