Strategic Corporate Bond Fund

ISIN
GB0033828020

Price (22.07.2016):
76.34

% Price Change
0.21

Fund objective and approach

Fund objective

To deliver income and capital growth.

Investment policy

At least 70% of the Fund is in investment grade (high quality) fixed income securities issued by companies. The Fund takes a focused approach, investing mostly in fixed income securities issued by quality companies from anywhere in the world. However, a portion of the Fund can also be invested in fixed income securities issued by governments and high yield fixed income securities (those issued by companies considered to be more risky and therefore generally pay a higher level of income). Derivatives may be used to meet the Fund’s investment objective and to reduce risk, minimise costs and generate additional capital and/or income. Derivatives are financial instruments whose value is linked to the expected future price movements of an underlying asset. The Fund is also able to invest in other funds, other debt securities, cash, warrants (allowing the fund manager to buy stocks for a fixed price until a certain date) and money market instruments (for example, debt securities that will be repaid in one year or less).

Investment approach

The M&G Strategic Corporate Bond Fund is invested primarily in 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.

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 Australia, Austria, Belgium, Canada, Denmark, Finland, France, Germany, Italy, Japan, Netherlands, Singapore, Sweden, Switzerland, UK, USA although these may vary subject only to those listed in the prospectus. The Fund allows for the extensive use of derivatives.

Performance

The value of investments will fluctuate, which will cause fund prices to fall as well as rise and you may not get back the original amount you invested. The level of any income earned by the fund will fluctuate. Past performance is not a guide to future performance. 

Source: Price: State Street. Performance: Morningstar. Performance figures are on a price to price basis with net income reinvested. Performance figures may not reflect all relevant charges.

Please note that the Morningstar Category performance data in this tool where shown, is from the default Morningstar database, which contains all the share classes for each fund available across Europe, Asia and Africa. This can differ from the comparative sector data in M&G factsheets which is from the same database, but showing only the most appropriate share class to represent each fund, and for just those funds available in Europe. Neither Morningstar nor its Information Providers can guarantee the accuracy, completeness, timeliness, or correct sequencing of any of the Information on the Web site, including, but not limited to Information originated by Morningstar, licensed by Morningstar from Information Providers, or gathered by Morningstar from publicly available sources. There may be delays, omissions, or inaccuracies in the Information.

 

Fund Team

Richard Woolnough

Richard Woolnough - Fund manager

Richard Woolnough joined M&G in January 2004 and is fund manager of the M&G Optimal Income Fund, the M&G Corporate Bond Fund and the M&G Strategic Bond Fund, three of the company's flagship fixed interest funds. Richard began his career at Lloyds Merchant Bank in 1985, moving to Italian insurer Assicurazioni Generali two years later, followed by SG Warburg. In 1995, he became a fund manager at Old Mutual. Richard graduated from the London School of Economics with a BSc in Economics.

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Ben Lord

Ben Lord - Deputy Manager

Ben Lord joined M&G in 2007 and is the fund manager of the M&G UK Inflation Linked Corporate Bond Fund. Ben has also managed the M&G Global Corporate Bond Fund from launch in September 2013 and was appointed fund manager of the M&G Index Linked Bond Fund in July 2015. Ben previously worked at Gordian Knot as a credit analyst covering global financial institutions. He obtained an MA (Hons) from the University of Edinburgh and is a CFA charterholder.

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Carlo Putti

Carlo Putti - Investment specialist

Carlo Putti is an associate investment specialist providing support for the M&G retail fixed interest fund range. He initially joined M&G in 2009, working on a part-time basis in the M&G Milan office, assisting the Italian Sales team. In 2013 Carlo moved to London, where he joined the M&G International Marketing team as a marketing executive before transferring to the M&G Retail Fixed Interest team nine months later. Carlo holds a degree in business economics from Cattolica University (Italy).

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Ratings

Rating is at a share class level

4 Star Rating

Rating is at a fund level

Gold Standard

Ratings as at 31/05/2016. Copyright © 2015 Morningstar UK Limited. All Rights Reserved. Ratings should not be taken as a recommendation.

© 2016 Morningstar. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Morningstar Rating past performance is no guarantee of future results. For more detailed information about Morningstar Rating, including its methodology, please go to http://corporate.morningstar.com/US/documents/MethodologyDocuments/MethodologyPapers/MorningstarFundRating_Methodology.pdf For more detailed information about Morningstar's Analyst Rating, including its methodology, please go to http://corporate.morningstar.com/us/documents/MethodologyDocuments/AnalystRatingforFundsMethodology.pdf

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