UK Inflation Linked Corporate Bond Fund


Price (27.05.2016):

% Price Change

Fund objective and approach

Fund objective

To protect the value of capital and income from inflation by generating a return at least consistent with UK inflation over rolling periods of three to five years. There is no guarantee that the Fund will achieve its objective over this, or any other, period. The income distributions and the value of your investment may rise and fall and investors may not recoup the original amount they invested.

Investment policy

At least 70% of the Fund is invested in inflation-linked debt securities issued by governments and investment grade (high quality) companies, where both the value of the security and the interest payments are adjusted in line with inflation until they are fully repaid. 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 may also invest in debt securities which are not linked to inflation, but would be expected to perform well in a rising inflation environment, such as floating rate notes (securities whose interest payments, or coupons, are periodically adjusted depending on the change in a reference interest rate) and high yield bonds (fixed income securities issued by companies considered to be more risky and therefore generally pay a higher level of income).

The Fund is also able to invest in other funds, other government and government-related debt securities, 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). The Fund may use derivatives to manage its exposure to foreign currencies.

Investment approach

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 manager 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 a rolling three- to five-year period.

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. This fund allows for the extensive use of derivatives.


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

Ben Lord

Ben Lord - Fund 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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Jim Leaviss

Jim Leaviss - Deputy Manager

Jim Leaviss is Head of Retail Fixed Interest for M&G’s mutual fund range. He joined M&G in 1997 after five years at the Bank of England. As well as heading up the team, Jim is the fund manager of the M&G Global Macro Bond Fund and the M&G European Inflation Linked Corporate Bond Fund. He is also deputy manager of the M&G Gilt and Fixed Interest Income Fund, the M&G Index-Linked Bond Fund and the M&G UK Inflation Linked Corporate Bond Fund.

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Ana Gil

Ana Gil - Investment specialist

Ana Gil joined M&G in 2012 as an associate investment specialist covering M&G’s fixed interest fund range. Prior to working at M&G, Ana was initially an analyst at HSBC Private Bank, and then joined HSBC Global Asset Management as part of the institutional sales team. She holds a bachelor's degree in law and finance from Pontificia Comillas University (ICADE) in Madrid and is a CFA charterholder. Ana is fluent in Spanish, English and Italian.

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Rating is at a share class level

1 Star Rating

Ratings as at 30/04/2016. Copyright © 2015 Morningstar UK Limited. All Rights Reserved. Ratings should not be taken as a recommendation.

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