M&G Investments today (8 July) named Andrew Chorlton as chief investment officer of its £139bn fixed income division, in succession to Jim Leaviss, who has decided to leave M&G to “pursue personal interests in academia” following a 27-year career with the firm.
Currently head of fixed income at Schroders and member of the firm’s Group Management Committee, Chorlton will join the business later this year and will report to Joseph Pinto, CEO of M&G Investments.
Chorlton (pictured) has more than 25 years of experience in fixed income markets managing teams of experienced, high performing fund managers. He has direct portfolio management experience in Global Fixed Income, US multi-sector and credit strategies in both Europe and the US. In the role he has held since 2020, he has been responsible for a global division of investment, research, risk and product professionals.
He has led the development of multiple innovative strategies and client solutions across many areas of Fixed Income including sustainability, quantitative credit, semi-liquid credit, emerging market debt, tax-aware and opportunistic strategies into markets around the world including the launch of active ETF strategies in the US.
M&G said Leaviss has spearheaded the company’s growth in Fixed Income, with the team widely recognised as a leading active manager in the asset class, managing £139 billion in assets on the behalf of international investors. Under his leadership, it said he had been responsible for building a global fixed income platform, including developing one of largest credit research teams in the industry; launching innovative investment products to account for the evolution of bond markets; and the development of the next generation of investment talent.
He also launched the Bond Vigilantes blog in 2006, to share the team’s views on the things that matter to bond investors – inflation, interest rates and the global economy – as well as to talk about the bond markets themselves.
Pinto said: “I would like to take the opportunity to pay tribute to Jim whose influence in the world of bonds has been significant – he should be extremely proud of his career at M&G and of the dynamic and talented team he has nurtured. Jim has delivered excellent returns for our clients and his unique way of communicating has always been very engaging with clients, by sharing the team’s insights straight from the desk. When Jim leaves later this year, he will go with our thanks for his contribution and our very best wishes as he pursues academic interests.
“With Andrew’s vast experience as both a fund manager and as a leader, we have appointed a Fixed Income heavyweight who will lead this highly experienced team at a time where we expect significant opportunities to materialise within bond markets as the rate cycle starts to move. We are excited by the opportunity to capitalise on the growth of our global fixed income platform by making strategies managed for our internal insurance client more widely available to our growing international client base, including global banks, family offices, pensions funds and insurance companies in the UK, Europe and Asia-Pacific.”
Leaviss, said: “It’s been a tremendous privilege to work at M&G for almost three decades and lead the team through the growth of bond markets during that time. I’m really proud of our team of fixed income professionals, the talent we’ve developed and what we’ve achieved for clients. Innovation is embedded into our culture, with the business having launched the UK’s first corporate and high yield bond funds, and how we communicate with clients with the launch of the Bond Vigilantes blog in 2006.
“Our investment range has grown dramatically, of note the launch of the M&G Optimal Income Fund which became one of the largest funds in Europe and our leading European credit capabilities that have an excellent reputation with international clients. I’d like to thank everyone for their support over the years and I am in no doubt that this culture will continue – I wish the team all the best.”
Chorlton said: “I have enjoyed over a decade at Schroders both in New York and London and am proud of the strong fixed income platform that has been built. I wish them well for the future as I embark on the next stage of my career. I have long perceived M&G to be one of the leading Fixed Income managers and a strong competitor throughout my career given its history in the asset class.
“The team’s presence has been further amplified through their ability to bring bond markets to life and make fixed income engaging through their innovative way of communicating with clients and a wider audience. It is an honour to take on this role at a time when investors are increasingly seeking active managers with a global perspective built on a foundation of proprietary research to take advantage of the opportunities that present themselves in the bond market as clients’ need for income continues to grow.”
M&G’s £139 billion Public Fixed Income is a global platform with teams in the UK, Europe, USA and Asia. The team manage a range of strategies across Investment Grade Credit, High Yield Credit, Government Bonds, Emerging Market Debt, Absolute Return, Flexible Credit, Multi Asset Credit and Annuities. M&G launched the UK’s first pure corporate bond fund in 1994, the UK’s first high yield Corporate Bond Fund in 1998, the M&G Optimal Income Fund in 2006, and established its Asia Fixed Income capability in Singapore in 2022.
Leaviss remains in role and will leave in the autumn following a smooth transition and handover of responsibilities.
M&G further announced forthcoming changes to the management responsibilities of the firm’s Global Macro Bond strategy, with Eva Sun-Wai and Rob Burrows becoming co-lead managers. The changes will take effect from 1 August 2024 and are part of the firm’s succession plans following the announcement that incumbent co-manager Jim Leaviss is to leave M&G to pursue personal interests in academia.
Eva Sun-Wai, has been co-manager of the strategy since January 2021, alongside Leaviss, and is also the lead manager of the Global Government Bond strategy, having joined the firm in 2018. Rob Burrows is a fund manager specialising in Government bond and macro fixed income mandates and joined M&G in 2007.
This flexible global bond strategy aims to provide a combination of capital growth and income by investing at least 80% of its assets in bonds issued by governments and companies from anywhere in the world, including emerging markets. The selection of bonds as well as exposure to markets and currencies are based on in-depth analysis of individual bond issuers, combined with an assessment of global, regional, and country-specific macroeconomic factors.
Alex Matcham, Head of UK Wholesale Distribution, M&G Investments, said: “Jim launched this fund in 1999 and over its almost 25-year history, he has delivered investors with excellent returns in this dynamic strategy, whilst the bond markets themselves have evolved and the universe has grown. It is testament to Jim and our culture of talent development within M&G that we are able to transition the management responsibilities to Eva and Rob, who will be supported by the broader team of investment professionals who have so consistently delivered outstanding performance for our clients over many years.”
In a separate statement on 8 July, Schroders announced announces the creation of its fixed income (FI) leadership team.
This will comprise Julien Houdain (Head of Global Unconstrained FI), Patrick Vogel (Head of Credit, Europe), Lisa Hornby (Head of US Multi-Sector Fixed Income), Abdallah Guezour (Head of Emerging Market Debt and Commodities), Patrick McCullagh (Global Head of Credit Research) and Andrew Moscow (Head of Fixed Income Management).
They will lead their respective areas and be responsible for the delivery of Schroders overall FI platform. Patrick McCullagh, Global Head of Credit Research, will be responsible for our unified and differentiated bottom-up research across the platform.
The statement said: “Andy Chorlton is leaving Schroders and we wish him the best in his future endeavours. As a result of the creation of our FI leadership team, Andrew’s role will not be directly replaced.
“Given Andy’s focus on business strategy and execution, rather than fund management, there will be no impact on clients, investment team or process.”
Johanna Kyrklund, Schroders co-head of investment and group CIO, said: “Schroders is committed to exceptional client outcomes through active management of their funds. The skills and unique insights of our managers allow us to identify and capitalise on investment opportunities for clients in a highly competitive market.
“Schroders’ fixed income team manages over £100bn of clients’ assets across our global operating platform We have a strong team-based investment approach and a robust investment process dedicated to managing our clients’ portfolios.
