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The M&G Absolute Return Bond Fund

Bond Vigilantes

Get the inside views on inflation, interest rates, the global economy and anything else that moves the bond markets.

Bond Vigilantes Bond Vigilantes blog


  • A flexible, multi-strategy bond fund, targeting 3 month GBP LIBOR +2.5% pa over any three-year period, with a specific focus on managing volatility and limiting losses during difficult market conditions.*
  • A highly-diversified portfolio, providing exposure to a broad range of fixed income strategies across global credit, government bond and currency markets.
  • Co-managed by Jim Leaviss, head of M&G Retail Fixed Interest, and Wolfgang Bauer, a specialist in global credit markets.

Download the sales aid

Find out more about the M&G Absolute Return Bond Fund

Why absolute return?

For risk-averse investors seeking reasonable returns, but who do not want to be exposed to large fluctuations in the value of their investment, this is a uniquely challenging market environment.

Many of the assets traditionally regarded as capable of generating low risk returns – such as cash and highly rated government bonds – today offer a yield close to zero, while financial markets have exhibited frequent periods of volatility over the past few years.  

We believe that a flexible investment strategy, which has the ability to access the best opportunities across global fixed income markets, will be key to navigating these increasingly challenging market conditions.

Drawing on the best ideas of M&G Retail Fixed Interest

The fund draws on the collective expertise of M&G’s Retail Fixed Interest team, providing access to an extensive range of investment knowledge, encompassing global investment grade, high yield and government bond markets.  

The team have long-running experience in managing flexible bond strategies, and have demonstrated the ability to manage risk during periods of heightened volatility, such as during the global financial crisis and the eurozone debt crisis.

Download the sales aid

Find out more about the M&G Absolute Return Bond Fund

*There is no guarantee that the fund will achieve a positive return over three years, or any other period, and investors may not get back the original amount they invested.

The fund allows for the extensive use of derivatives. The fund may invest more than 35% in securities issued by any one or more of the governments listed in the fund prospectus. Such exposure may be combined with the use of derivatives in pursuit of the fund objective. It is currently envisaged that the fund’s exposure to such securities may exceed 35% in the governments of Germany, Japan, UK, USA although these may vary subject only to those listed in the prospectus.

Cyveillance Protected

The value of investments will fluctuate, which will cause fund prices to fall as well as rise and investors may not get back the original amount invested. 
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