A statement released by L&G on 22 April confirmed that the lead manager of the L&G Dynamic Bond Trust will quit the group in October, but gave no reason for his departure.
Martin Reeves, senior fixed income fund manager, will take responsibility for the £1.98bn fund, with a transition period planned for the coming months.
Mr Hodges was also interim manager of the L&G Fixed Interest, Managed Monthly Income and Sterling Income funds, following the departure of Michel Canoy in January.
The UK institutional credit team, which manages assets worth £12bn, will now be headed up by Robert Barnard-Smith.
Darius McDermott, managing director of London-based Chelsea Financial Services, said: “His resignation is a real blow to L&G. The fixed income team is well-resourced, but Mr Hodges was the stand-out manager.
“His total return mentality was particularly attractive to bond investors who, in the current environment, are keen to preserve capital as interest rates rise. We have downgraded the fund to a hold with immediate effect.”
