Investment philosophyM&G’s fundamental philosophy is to avoid downside risk by maximum diversification of underlying credits in the portfolio and strong, dedicated credit skills.
We use a ‘bottom-up’, fundamental analysis of credits and debt structures and the reward proposal for the inherent risk assumed. In addition, careful consideration of the likely aftermarket liquidity of the loan is made. This analysis is undertaken by a dedicated credit analyst, supported by a Leveraged Finance Director.
Portfolio management rests on the credit assessment of the leverage finance analysts, each of whom has responsibility for a number of credits, their ratings (according to an internal scoring system) and performance monitoring of each loan.
The scale of M&G’s credit operation means that the portfolio manager has access to a wider public fixed income research team, which is organised by sector, and which provides useful background information on the industry in which a particular credit is operating. M&G’s public equity and corporate finance analysts can provide further, macro-level insight.
Visit our pooled funds website to find out more about our range of fixed income pooled funds.
