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Audience

M&G fixed income OEIC fund range

The award winning M&G fixed income fund managers are specialists in their field. Their recognised ability and experience is complemented by the skill and independence of our in-house credit analyst team.

M&G Corporate Bond Fund

Fund manager: Richard Woolnough

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 M&G Corporate Bond Fund invests mainly in sterling denominated ‘investment grade’ debt (BBB and above). The fund manager aims to identify corporate bonds that offer sufficient compensation for the risks of owning them. Typically this will involve an emphasis on A and BBB rated credits, although this may not always be the case. The fund’s exposure to corporate debt may be gained through the use of derivatives.

Default risk is constantly monitored and always well diversified. The fund focuses on proprietary research using our extensive credit resources, rather than on external research, as ratings agencies can be slow to revise their credit ratings and do not assess the effect of event risk on a company.

Please visit our financial adviser website or contact us for further information.

M&G Emerging Markets Bond Fund

Mike Riddell

Fund Manager: Mike Riddell

The Fund aims to maximise total return (the combination of income and growth of capital).

The M&G Emerging Markets Bond Fund invests mainly in debt instruments issued by emerging market nations* and their agencies. The fund’s exposure to debt instruments may be gained through the use of derivatives. The fund is diversified by country and by credit rating, according to the fund manager’s perception of yields relative to the economic fundamentals as well as regulatory and political environment. There is a focus on proprietary research from a macroeconomic perspective with an emphasis on analysis of a country’s debts and underlying assets. There are no restrictions on the currency in which debt instruments held in the portfolio may be issued.

* M&G has the discretion to identify the countries that it considers to qualify as emerging markets although these will typically be those that the IMF or World Bank define as emerging or developing economies.

Please visit our financial adviser website or contact us for further information.

M&G European Corporate Bond Fund

Stefan Isaacs

Fund Manager: Stefan Isaacs 

The Fund aims to maximise total return (the combination of income and growth of capital) while generating a higher level of income than that from European government bonds of similar maturities. The M&G European Corporate Bond Fund invests mainly in euro-denominated investment grade debt (rated from AAA to BBB-). It may also invest in high yield corporate bonds and government bonds denominated in any European currency. The fund’s exposure to bonds, government and other public securities may be gained through the use of derivatives.

The fund manager focuses on in-house credit research, rather than relying on external research. Default risk is constantly monitored and the portfolio will always be well diversified. The fund will have exposure to a wide range of different companies spread across many economic sectors. Exposure to any individual company will be restricted according to its credit quality.

Please visit our financial adviser website or contact us for further information. 

M&G European High Yield Bond Fund

James

Fund Manager: James Tomlins 

The Fund aims to maximise total return (the combination of income and growth of capital) while generating a high level of income.

The M&G European High Yield Bond Fund focuses on ongoing proprietary research rather than relying on external credit ratings. Emphasis is placed upon investigating the ability of a company or government to meet its interest payments, especially during unfavourable economic conditions. Credit risk is constantly monitored and typically spread across a variety of countries and industrial sectors. The fund’s exposure to higher yielding debt instruments may be gained through the use of derivatives. Exposure to European currencies (mainly the euro) is an integral part of the management approach, and fluctuations in the exchange rates of these currencies against sterling are likely to play a significant role in determining total returns for UK-based investors.

Please visit our financial adviser website or contact us for further information. 

M&G Gilt & Fixed Interest Income Fund

Jim Leaviss

Fund Manager: Jim Leaviss 

The Fund is designed to provide a secure income with stability of capital consistent with investment in gilts.

The M&G Gilt & Fixed Interest Income Fund is managed on a total return basis, with the aim of outperforming its peer group. The fund manager’s investment approach is driven primarily by macroeconomic factors such as views on inflation, interest rates and economic growth and tends not to be influenced by short-term changes in the economic or market environment. A minimum of 80% of the fund is to be invested in UK government bonds, subject to which, it can invest a maximum of 20% in government guaranteed securities and up to 5% in corporate bonds and cash. The corporate bond purchases are made in consultation with the fund managers of the M&G Corporate Bond Fund and the M&G High Yield Corporate Bond Fund.

Please visit our financial adviser website or contact us for further information. 

M&G Global Macro Bond Fund

Jim Leaviss

Fund Manager: Jim Leaviss

The Fund’s objective is to maximise long term total return (the combination of income and growth of capital).

The M&G Global Macro Bond Fund is a fully flexible global bond fund. Its investment approach is driven primarily by the fund manager’s views on macroeconomic factors such as economic growth, interest rates and inflation. This assessment determines the asset classes in which he believes the fund should invest in order to achieve the objective of maximising long-term total return. It also influences the portfolio’s mix of interest rate risk, credit risk and currency exposure, as well as the subsequent holdings. The fund is classified in the IMA Global Bond sector in the UK and the Morningstar Global Bond as well as the Morningstar Global Bond - EUR Hedged sectors in Europe. As such, its returns will include a higher degree of currency risk than domestic fixed interest funds.

Please visit our financial adviser website or contact us for further information. 

M&G Global High Yield Bond Fund

Stefan

Fund Manager: Stefan Isaacs

The Fund is designed to maximise total return (the combination of income and growth of capital) while generating a high level of income

The M&G Global High Yield Bond Fund invests predominantly in higher yielding corporate bonds. The fund manager’s investment approach concentrates on bottom-up analysis of individual bond issues whilst remaining aware of macroeconomic developments. There is a focus on proprietary research rather than external research. Credit risk is constantly monitored and always well diversified. Foreign currency exposure is typically hedged to sterling using forward foreign currency contracts, although some currency exposure may exist.

Please visit our financial adviser website or contact us for further information. 

M&G Index-Linked Bond Fund

Mike

Fund Manager: Mike Riddell

The Fund aims to secure the value of capital and income from the effects of inflation with a long-term total return consistent with investment in index-linked bonds.

The portfolio will focus mainly on index-linked debt instruments which may be government and public securities or corporate debt instruments. Non-sterling denominated securities may be held and, if deemed appropriate by the investment manager, the associated currency risks hedged. The Fund’s exposure to index-linked, government and public securities or corporate debt may be gained through the use of derivatives. The Fund may also invest in other assets including collective investment schemes, other transferable securities, cash and near cash, deposits, warrants, money market instruments and other derivative instruments.

Please visit our financial adviser website or contact us for further information. 

M&G International Sovereign Bond Fund

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Fund Manager: Mike Riddell

The Fund aims to maximise total return (the combination of income and growth of capital) through investment in a portfolio of investment grade debt instruments.

The M&G International Sovereign Bond Fund aims to maximise total return through investing primarily in investment grade sovereign debt securities denominated in the currencies of the major industrialised nations, with the exception of the UK. The fund seeks to outperform the Citigroup Non GBP World Government Bond Index net of fees over a one-to-three year horizon, taking active country, yield curve and currency positions to generate alpha.

Please visit our financial adviser website or contact us for further information. 

M&G Optimal Income Fund

Fund Manager: Richard Woolnough

The fund aims to provide a total return to investors based on exposure to optimal income streams in investment markets.

The M&G Optimal Income Fund is a fully flexible bond fund, allowing investment across a broad range of fixed income assets according to where the fund manager identifies value. The investment approach begins with a top-down assessment of the macroeconomic environment, including the likely path of growth, inflation and interest rates. The results of this analysis help inform the fund's duration positioning and its allocation to the various bond asset classes. Individual credit selection is carried out in conjunction with M&G's in-house team of credit specialists, which provides bottom-up analysis of the corporate bond markets to complement the fund manager's views.

There are no restrictions on the amount of government bonds, investment grade bonds or high yield bonds that can be held within the portfolio. The fund may also invest in other assets, including cash, equities and derivatives. Derivative instruments may be used for both investment purposes and efficient portfolio management.

Please visit our financial adviser website or contact us for further information. 

M&G Short Dated Corporate Bond Fund

Ben Lord

Fund Manager: Ben Lord

The Fund aims to provide income with stability of capital.

The M&G Short Dated Corporate Bond Fund invests in floating rate notes (FRNs) and in short dated corporate bonds. Proprietary fundamental credit research is at the heart of the investment process and the fund primarily holds debt investments issued by large corporations or by international financial institutions. The fund is managed with the aim of maintaining stability of capital and providing a steady flow of income which should exceed that available from a typical building society deposit account. Capital up to £85,000* is, however, secure in a building society account, whereas it does carry some risk in this fund.

* Financial Services Compensation Scheme as at 31 December 2010.

Please visit our financial adviser website or contact us for further information. 

M&G Strategic Corporate Bond Fund

Fund Manager Richard Woolnough

The Fund aims to maximise total return (the combination of income and growth of capital).

The M&G Strategic Corporate Bond Fund is invested primarily in sterling-denominated investment grade debt. However, up to 20% of the portfolio may be invested in higher yielding corporate bonds, government debt, convertibles and preference stocks, as well as money market instruments. The fund's exposure to corporate debt may be gained through the use of derivatives.

The investment approach is very much ‘top-down’, therefore, the fund manager’s economic outlook will determine the portfolio’s duration, and in which asset classes and sectors it is concentrated.

The fund manager uses proprietary research, rather than external research. M&G’s in-house team of credit analysts provides bottom-up analysis of the corporate bond markets, which complements the fund manager’s top-down views.

Please visit our financial adviser website or contact us for further information. 

M&G UK inflation Linked Corporate Bond Fund

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Fund Managers: Jim Leaviss and Ben Lord

The Fund aims to protect the value of capital and income from inflation by generating a return consistent with or greater than UK inflation over the medium to long term.

The M&G UK Inflation Linked Corporate Bond Fund invests in a range of fixed interest securities that should perform well when inflation is high or rising. The fund will be mainly exposed to investment grade credit but can also invest in inflation-linked government bonds, floating rate notes (FRNs), senior secured loans, conventional corporate and government bonds, cash and derivatives such as credit default swaps (CDS). The fund managers may also form assets out of a combination of government bonds and derivatives, whose returns behave in a similar way to inflation-linked corporate bonds. The aim of the fund is to provide returns that are consistent with or exceed inflation, as measured by the Consumer Prices Index (CPI) over the medium to long term.

Please visit our financial adviser website or contact us for further information. 

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