Strategic Corporate Bond Fund

ISIN
GB0033828020

Price (28.04.2017)
76.58

% Price Change
-0.07

Fund objective and approach

Fund objective

To provide income and capital growth.

Investment policy

"At least 70% of the fund is invested in investment grade (high quality) bonds issued by companies. The fund manager takes a focused approach, investing mostly in bonds issued by high-quality companies from anywhere in the world. However, he may also invest a portion of the fund in bonds issued by governments, typically of developed nations, and high yield bonds (issued by companies considered to be more risky and therefore generally pay a higher level of income). We may use derivatives to help meet the fund’s investment objective and to reduce risk and costs. We may also use derivatives to reduce the impact of changes in non-sterling currency exchange rates on the fund’s investments. Derivatives are financial contracts whose value is derived from other assets. The fund may also invest in other funds, other types of bonds, cash, warrants (financial contracts which allow the fund manager to buy stocks for a fixed price until a certain date) and money market instruments (for example, debt due to be repaid within a year).

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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 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 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.

 

News

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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Laura Frost

Laura Frost - Investment specialist

Laura Frost is an investment specialist providing support for the M&G retail fixed income fund range. Laura joined M&G in 2011 as a technical training director for the Learning Matters team. Prior to M&G, Laura worked for six years at a training consultancy specialising in capital markets, focusing on fixed income and derivatives. Before this, she spent six years as a fixed income derivatives trader for a proprietary trading house. Laura graduated from Leeds University in 1998 with a BSc (Hons) in geology, and in 1999, gained an MSc in engineering geology.

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Ratings

Rating is at a share class level

4 Star Rating

Rating is at a fund level

Silver Standard

Ratings as at 31/03/2017. The Morningstar Overall Rating. Copyright © 2017 Morningstar UK Limited. All Rights Reserved. The Morningstar Analyst Rating™. © 2017 Morningstar. All Rights Reserved. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Ratings should not be taken as recommendation.

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