Fixed income

Fixed income securities, also known as bonds, are loans, usually taken out by a government or company which normally pay a fixed rate of interest over a given time period, at the end of which the loan is repaid.

Don’t forget to make the most of your 2019/2020 ISA allowance

You can request an ISA application pack or top up an existing investment over the phone

Speak to one of our team today

Other asset classes

We also offer a wide range of funds in other key asset classes. Find out more about our:

Equity funds

Property fund

Convertibles fund

Multi-asset funds

Fund prices

View the latest prices for all of M&G's funds.

M&G fund prices View fund prices

They potentially offer a more predictable income for investors when compared to riskier asset classes, such as equities, and could help to bring an important element of diversification to your investment portfolio.

The value of the fund's assets will go down as well as up. This will cause the value of your investment to fall as well as rise and you may get back less than you originally invested.

When you buy a bond, you’re effectively extending a loan to the bond issuer. Bonds can be issued by governments or companies. Government bonds are generally issued to fund public spending on projects like new roads and schools, while a company may issue corporate bonds as a way of financing new business opportunities.

Fund Main type of bonds held
M&G Absolute Return Bond Fund
M&G Global Macro Bond Fund
M&G Optimal Income Fund
Flexible – A mixture of different types of bonds
M&G Gilt & Fixed Interest Income Fund
M&G Global Government Bond Fund
Government bonds – Issued by governments; among the biggest issuers of these securities are the UK, US and German governments.
M&G Index-Linked Bond Fund
M&G UK Inflation
Linked Corporate Bond Fund

Inflation-linked bonds – Inflation-linked bonds are fixed income securities where both the value of the loan and the interest payments are adjusted in line with inflation over the life of the security. Also referred to as index-linked bonds.
M&G Corporate Bond Fund
M&G European Corporate Bond Fund
M&G Short Dated Corporate Bond Fund
M&G Strategic Corporate Bond Fund
Corporate bonds – Issued by companies and typically offer higher interest payments than government bonds as they are often considered more risky.
M&G Global High Yield Bond Fund
High yield bonds – Issued by companies with a low credit rating from a recognised credit rating agency, such as Standard & Poor's. They are considered to be riskier than better quality, ie higher-rated, bonds but have the potential for higher rewards.
M&G Global Floating Rate High Yield Fund Floating rate notes – Usually issued by companies, these securities offer interest (income) payments that are periodically adjusted depending on the change in a reference interest rate.
M&G Emerging Markets Bond Fund Emerging market bonds – Issued by governments and companies from emerging markets. These are economies in the process of rapid growth and increasing industrialisation. Investments in emerging markets are generally considered to be riskier than those in developed markets.

The value of the fund's assets will go down as well as up. This will cause the value of your investment to fall as well as rise and you may get back less than you originally invested.

We are unable to give financial advice. If you are unsure about the suitability of your investment, speak to your financial adviser. The views expressed on this web page should not be taken as a recommendation, advice or forecast.

Need further information?