Stay connected:
Citywire printed articles sponsored by:
View the article online at http://citywire.co.uk/wealth-manager/article/a636151
Why M&G's corporate bond fund makes A-rated Clive Beagles sad
Markets
by Danielle Levy on Nov 21, 2012 at 13:38
‘Equities – regardless of whether GDP growth is 2,3 or 4% - continue to look so much cheaper than the bond alternatives. We all read how much money M&G take on a monthly or quarterly basis and we all know that money is going into their corporate bond-type product.
'That really saddens me. It is not that we want to be running a lot more money, but all the equities we own that have corporate bonds, the equities are yielding more than the corporate bonds and these are equities where the dividends are growing in real and nominal terms.'
'Why would you buy a Centrica 30-year plus bond yielding 4.3% when you can buy the equity on a yield of 5% today and that dividend will grow RPI plus 3-4%? And there are countless examples like that,’ he said.
Elsewhere, the manager remains bullish on domestic-orientated stocks, such as Restaurant Group, and continues to back turnaround stocks 3i and ITV.
News sponsored by:
Subscribe to Wealth Manager magazine and rack up CPD points
Citywire Wealth Manager has partnered with CISI to enrich the experience of subscribers to our magazine.
Today's top headlines
More about this:
Look up the funds
Look up the shares
- Standard Life PLC (SL.L)
- Hargreaves Lansdown PLC (HRGV.L)
- ITV PLC (ITV.L)
- 3i Group PLC (III.L)
- Restaurant Group PLC (RTN.L)
Look up the fund managers
More from us
Archive
Aberdeen Live supplement: Fundamentals point to ongoing flows and solid returns from EMD
After a record year for inflows and market-leading performance in 2012, emerging market debt has taken a large step towards the mainstream. Our recent debate covers the outlook for the asset class this year and where opportunities can be found.
On the road
Click here to find out more from the Audience Development team.
Read more...
Subscribe to Wealth Manager magazine and rack up CPD points
by Dylan Lobo on May 16, 2013 at 16:17
1 comment so far. Why not have your say?
Knowledgable insider
Nov 25, 2012 at 13:38
Yet another analysis that is completely correct - the investment market will be driven by those geniuses at the FSA who's record to date is hardly impressive. Advisers are being forced into funds that suit compliance but not necessarily the investor - so yet another case of' 'the FSA ticks are all in the right boxes' but pity the poor client. You couldn't make this up and yet our political master stand idly by!!!
report thisleave a comment
Please sign in here or register here to comment. It is free to register and only takes a minute or two.