Revealed: Wealth managers' Woolnough alternatives

WEALTH MANAGERS

Wealth managers have been reassessing their corporate bond fund holdings on concerns voiced by M&G's Richard Woolnough who said it will be difficult to run his funds effectively should inflows continue at their current pace.

M&G said last week it was making moves to slow inflows from institutional clients into the £6.3bn Corporate Bond and £5bn Strategic Corporate Bond funds, which have taken around £2bn each in the last 15 months. Investment Quorum’s Lee Robertson said his firm has begun due diligence on other bond funds as the “slowing of inflows” into a fund normally leads to more drastic action. “It is normally a pre-cursor to soft closure. Although we could liquidate our position in the M&G Strategic Corporate Bond fund quickly, we are looking at holding Stewart Cowley’s Old Mutual Global Strategic B...