Corporate Bond Fund

ISIN
GB0032137860

Price (25.09.2020)
19.87

Objective and investment policy

Objective

The fund aims to provide a combination of capital growth and income, net of the Ongoing Charge Figure, higher than that of the average return of the IA £ Corporate Bond Sector over any five-year period.

Investment policy and strategy

Core investment: At least 70% of the fund is invested, directly or through derivatives, in investment grade bonds issued by companies from anywhere in the world, including emerging markets. These bonds are denominated in Sterling or hedged back to Sterling.

Other investments: The fund may invest in government bonds, high yield bonds, asset-backed securities, other funds (including funds managed by M&G) and cash or assets that can be turned into cash quickly.

Derivatives: The fund may invest via derivatives and use derivatives to reduce the risks and costs of managing the fund.

Strategy in brief: The fund manager selects investments based on an assessment of macroeconomic, asset, sector and stock-level factors.

Spreading investments across issuers and industries is an essential element of the strategy.

Benchmark: IA £ Corporate Bond Sector


The benchmark is a target which the Fund seeks to outperform. The sector has been chosen as the benchmark as the fund is a constituent of the sector. The benchmark is used solely to measure the fund’s performance and does not constraint portfolio construction.


The fund is actively managed. The fund manager has complete freedom in choosing which investments to buy, hold and sell in the fund.

The benchmark is shown in the share class currency.

You can find more information about the fund in the Prospectus.

Risks associated with the fund

The value and income from 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. There is no guarantee that the fund will achieve its objective and you may get back less than you originally invested.

Investments in bonds are affected by interest rates, inflation and credit ratings. It is possible that bond issuers will not pay interest or return the capital. All of these events can reduce the value of bonds held by the fund.

High yield bonds usually carry greater risk that the bond issuers may not be able to pay interest or return the capital.

The fund may use derivatives to profit from an expected rise or fall in the value of an asset. Should the asset's value vary in an unexpected way, the fund may lose as much as or more than the amount invested.

The fund is exposed to different currencies. Derivatives are used to minimise, but may not always eliminate, the impact of movements in currency exchange rates.

In exceptional circumstances where assets cannot be fairly valued, or have to be sold at a large discount to raise cash, we may temporarily suspend the fund in the best interest of all investors.

The fund could lose money if a counterparty with which it does business becomes unwilling or unable to repay money owed to the fund.

Operational risks arising from errors in transactions, valuation, accounting, and financial reporting, among other things, may also affect the value of your investments.

Further details of the risks that apply to the fund can be found in the fund's Prospectus.

Other information

The Fund allows for the extensive use of derivatives


The performance webpage for this fund is currently being reconfigured. In the interim, for performance information, please refer to the latest Fund Factsheet which can be found in the Literature section.

Fund Team

Richard Woolnough

Richard Woolnough - Fund manager

Richard Woolnough manages Optimal Income, Corporate Bond and Strategic Corporate Bond, three of M&G’s flagship fixed income strategies. Richard, who joined M&G in January 2004, 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.

 Team member biography
Ben Lord

Ben Lord - Co-manager

Ben Lord joined M&G in 2007 and was appointed manager of the M&G Global Corporate Bond strategy when it was launched in September 2013. Ben also manages the M&G UK Inflation Linked Corporate Bond strategy and co-manages the Corporate Bond and Strategic Corporate Bond strategies. Before joining M&G, he worked at Gordian Knot as a credit analyst covering global financial institutions. Ben obtained an MA (Hons) from the University of Edinburgh and is a CFA charterholder.

 Team member biography
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.

 Team member biography

Ratings

Rating is at a share class level

2 Star Rating

Ratings as at 30/06/2020. The Morningstar Overall Rating. Copyright © 2019 Morningstar UK Limited. All Rights Reserved. The Morningstar Analyst Rating™. © 2019 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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