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M & G Strategic Corporate Bond Class X Accumulation *

Sell : 75.13p | Buy : 75.13p | up 0.27p
Last valuation as at 17-03-2010

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



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