Morningstar upgrades rating on Schroder Corporate Bond fund

Morningstar has upgraded its qualitative rating for the Schroder Corporate Bond fund.  Previously rated Standard, the fund is upgraded to Superior. 

Fund analyst (Ms) Nitya Pandalai-Nayar comments: "Our confidence in the manager and process behind Schroder Corporate Bond has increased. The fixed income team at Schroders saw several changes two years ago, but we believe that it has since settled down. The manager has greater control over his own process now, and we think he will continue to generate good performance here. The fund is upgraded to Superior."

Also rated Superior is the M&G Strategic Corporate Bond, which is rated by Morningstar for the first time. 

Fund analyst (Mr) Alex Prineas comments: "We think highly of M&G Strategic Corporate Bond. Fund manager Richard Woolnough is one of the most experienced bond managers around and is backed by a very large credit team. He and the team use the same proven investment process as on Woolnough's M&G Corporate Bond, but the size of bets are increased in this slightly more aggressive fund. Performance is commensurately higher, indicating that Woolnough has used the additional risk to generate extra returns. A high TER and rapid asset growth are the only factors that prevent us from having maximum conviction in the fund. But M&G have managed these headwinds well so far, thus the fund earns our Superior rating."