M & G Strategic Corporate Bond Class X Accumulation 
HL comment
Our view on this Fund
In 2009, corporate bonds saw one of their best years in decades - capital values have increased and yields have fallen from their highs. Despite this, Richard Woolnough is optimistic about further growth. He believes inflationary pressure is relatively muted, which should prove supportive of bond valuations. One area where he is cautious is government bonds which could underperform given the large amount of issuance expected
22-02-2010
Information from the fund manager
Please note: The information in this box has been provided by, and is issued by, the fund manager and not Hargreaves Lansdown.
HL group comment: M&G
Our view on this Fund Management Group as a whole
The group has gone through some dramatic changes both internally, with shake ups in their fund range, and externally as a result of having been bought by the Prudential. Changes over the last few years to both the team and the investment philosophy has led to an improvement in performance across a range of funds. One sector in which they have been successful is in corporate bonds, where assets under management have grown enormously, and has provided a core element of their unit trust business. Their equity business is now equally competitive in the market place with performance speaking for itself across a range of funds including their UK and global products.
06-05-2009
HL sector comment: GBP Corporate Bond
Our view on this sector
Corporate bond markets saw a dramatic rally in 2009 as the economic picture stabilised somewhat and the market reassessed the chances that companies might fail. The outlook remains positive, as ultra-low interest rates force investors to look elsewhere for income. In addition, the Bank of England's quantitative easing programme has helped keep gilt yields relatively low, making corporate bonds more attractive by comparison. Looking forwards, the majority of the return from bonds is likely to be income; the capital gains of 2009 should be seen as a one-off and are unlikely to be repeated. However, an income of 4% to 8% could still be achieved from a corporate bond fund.
When dealing or valuing your holdings please be aware that the bid / offer spreads for a few corporate bond funds are unusually wide.
23-02-2010