Legal & General Investment Management's Richard Hodges will take on the management of three additional fixed income funds totalling £2bn in assets, after existing manager Michel Canoy opted to exit the business.
Hodges (pictured) will become lead manager on the £1.3bn Legal & General Fixed Interest Trust, the £391m Legal & General Managed Monthly Income Trust and the £661m Legal & General Sterling Income fund.
The handover will take place in January when Canoy - who has delivered stellar performance for investors in the flagship L&G Fixed Interest Trust - exits the group.
Hodges said: "I know these funds well and I look forward to managing them. Next year should be an interesting time for investment grade corporate bonds.
"Economic growth looks positive, so I expect the future path of US and UK interest rates to be a key driver of returns in 2014 and beyond. At the moment I have a strong conviction for assets with less interest rate sensitivity and am actively managing interest rate risk - a theme that is reflected across all our retail funds."
Roger Bartley, head of fixed income at LGIM added: "The funds have delivered strong performance under Michel's management and I am confident that Richard and the team can build on this success in the future. We wish Michel all the best in his future career."
Canoy's Fixed Interest Trust has returned 59.8% in the five years to 22 November, according to Morningstar, ahead of the IMA Sterling Corporate Bond average of 25.8%.
The firm said the team-based investment processes across the three funds will remain unchanged.
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