M&G

BOND MARKET REACTS TO US DOWNGRADE

The decision by Standard and Poor's to downgrade the US' prized AAA-rating for the first time came as no surprise to a number of fund managers.

M&G, the asset management arm of insurer Prudential, saw profits rise 39% in the first half of 2011 despite a sharp decline in inflows.

M&G's head of retail fixed interest Jim Leaviss has warned the US will see its credit rating downgraded to AA shortly after next year's presidential election.

M&G's Stuart Rhodes is poised to drop a handful of stocks from his £1.1bn M&G Global Dividend fund in the expectation they are set to cut their dividend.

The Cautious Managed sector remains at the top of the leaderboard on the Cofunds platform, taking 32% of net sales in June.

M&G's Richard Woolnough is maintaining his underweight to UK banks as he predicts the sector will not see a turnaround for 10 to 20 years.

Managers to run global and UK mandates at boutique group Eden Financial.

M&G's Richard Woolnough will see his Corporate Bond fund swell to nearly £5bn as part of a series of mergers being carried out by the group.

Spain is facing the same danger of default as Greece, Ireland and Portugal, said M&G's Mike Riddell, following the lacklustre Spanish government bond auction yesterday.