M&G liquidity concerns
Last month M&G said it was taking steps to limit the size of Richard Woolnough's Strategic Corporate Bond and Corporate Bond funds.
On a conference call with investors, Woolnough said that while M&G would look to slow inflows into these two funds, the more flexible mandate of the M&G Optimal Income fund meant it would remain fully open to investors.Woolnough told investors: 'Both funds have grown rapidly and as they have become larger it has become more difficult to apply my investment process. The M&G Corporate bond will remain open but we will look to slow inflows.
The M&G Corporate Bond fund had grown to over £6.31 billion at the end of June while the M&G Stategic Corporate Bond fund had reached more than £5.16 billion.
M&G's global head of retail sales Jonathan Willcocks said that the group would be contacting its largest clients in the coming days to explore ways to slow inflows to the two funds.
'There is no simple step to slowing funds but we will contact key clients to see if we can reduce the pace of inflows,' he said.
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