The new offerings will be managed by its retail fixed interest team headed by Jim Leaviss and multi asset team, led by Dave Fishwick.
The M&G Absolute Return Bond Fund will be managed by Leaviss and Dr Wolfgang Bauer and will target GBP Libor +2.5% per annum over any three-year period, with ongoing charges of 0.86%.
The M&G Global Target Return Fund will be managed by Tristan Hanson and target a combined income and capital growth of GBP Libor +4% per annum over a rolling three-year period, with ongoing charges of 0.91%.
“The current market environment is challenging for cautious and risk-averse investors, as many of the assets that have traditionally generated low-risk returns, today offer extremely low or even negative prospective returns,” said chief investment officer for M&G equities, multi-asset, retail fixed interest, Graham Mason.
“These funds have been launched with these investors in mind and aim to help them navigate a challenging market environment, while seeking reasonable returns, without being exposed to large or frequent fluctuations,” he added.
