M&G Corporate Bond FundWhy choose the M&G Corporate Bond Fund?
How has the M&G Corporate Bond Fund performed?
The fund, managed by Citywire A* rated Richard Woolnough, mainly invests in investment grade (higher-rated) corporate bonds. These are usually issued by established companies who are considered less likely to default on their debt payment obligations, therefore providing investors with a more reliable source of income.
Richard applies his views on the likely direction of economic growth, inflation and interest rates in managing the fund. He combines this with in-depth analysis of the stocks themselves, drawing on the expertise of M&G’s credit analysis team to identify attractive investment opportunities.
The Fund aims to achieve a higher total return (the combination of income and growth of capital) from investment than would be obtainable in UK government fixed interest securities (ie gilts) of similar maturities. The Fund invests mainly in sterling denominated corporate debt instruments. The Fund’s exposure to corporate debt may be gained through the use of derivatives. Any currency exposures within the Fund may be managed by currency hedges into sterling. The Fund may also invest in other assets including collective investment schemes, other transferable securities and other debt instruments (including corporate debt and government and public securities denominated in any currency), cash and near cash, deposits, warrants, money market instruments and other derivative instruments.
Products available: ISA & OEIC
Citywire A* rated Richard Woolnough joined M&G in January 2004. He is a fund manager on the M&G retail fixed interest team. Richard began his career at Lloyds Merchant Bank in 1985, moving to Italian Bank Assicurazioni Generali two years later, followed by SG Warburg. In 1995, he was recruited by Old Mutual to manage a £550 million investment grade corporate bond portfolio. In 2000, he assumed responsibility for a new fund - the Old Mutual Corporate Bond Fund. Richard graduated from the London School of Economics with a BSc in economics.
In addition to the fund data that can be found by accessing the menu to the left of this page you may also wish to read the fund Key Features (3 MB) which contains further fund information.
| Single year performance (5 years ending July 2010) | |||||
| From
To | 31.07.09
30.07.10 | 31.07.08
31.07.09 | 31.07.07
31.07.08 | 31.07.06
31.07.07 | 29.07.05
31.07.06 |
| M&G Corporate Bond Fund | +13.1% | +12.4% | +2.0% | -1.1% | +2.1% |
| IMA £ Corporate Bond Sector | +15.1% | -0.1% | -2.7% | -1.3% | +1.5% |
Please remember that you should not base decisions on past performance, prices may fluctuate and you may not get back your original investment. Interest rate fluctuations may affect the capital value of fixed interest securities held by a fund. Capital value is likely to fall when interest rates rise and vice versa. Overseas bonds may be affected by currency exchange rates. Up to £50,000** of your money is secure in a bank or building society unlike a stocks or shares or fixed interest investment. This fund provides a variable level of income.
Source of all performance figures: Morningstar Inc., and M&G Statistics, bid to bid, net income reinvested, Sterling Class A Shares as at 30 July 2010.
*Citywire rating as at 31 July 2010 and should not be taken as a recommendation.
**The Financial Services Compensation Scheme as at 07.10.08
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