View the article online at http://citywire.co.uk/wealth-manager/article/a747295
L&G fixed income star Dickie Hodges quits
by Eleanor Lawrie on Apr 22, 2014 at 13:51
Hodges, who ran the Citywire Selection £2 billion Dynamic Bond Trust (DBT), was also managing the Fixed Interest, Managed Monthly Income and Sterling Income funds on an interim basis, following the departure of Michel Canoy at Christmas.
The Dynamic Bond Trust will be taken on by L&G senior fixed income manager Martin Reeves, while the other three funds will be managed by the UK institutional credit team, led by Robert Barnard-Smith. Hodges will remain employed by L&G until October.
'Martin brings a huge wealth of experience to the lead management of the Dynamic Bond Trust, a fund that he knows exceptionally well,' Roger Bartley, head of fixed income at LGIM, said. 'We are of course saddened to see Richard leave after seven years at LGIM and he carries our very best wishes for success in the future.'
Hodges was AAA-rated by Citywire between November 2009 and October 2011 but has struggled to perform in recent conditions, with DBT bottom quartile over the last three years with a return of 17.9%
Over fives years the fund is second quartile with a return of 81.5%.
In an exclusive interview at the Wealth Manager awards last month, Hodges explained the risks to his short duration call, which he admitted was costing him money ‘every single day’.
But he argued that in the current environment, ‘the probability of generating income from interest rates is more significant than it has been over the last four years’.
“The Dynamic Bond Trust is a highly regarded fund backed up by a substantial and experienced team.
“We will to continue to follow our successful formula and look to deliver attractive total returns to investors through the economic cycle.”
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