M&G’s public fixed income investment division is launching an 18-month fixed maturity bond strategy.
The firm said the fund aims to capture what it describes as ‘the most compelling opportunity presented in credit markets in the past decade’.
The fund will invest mainly in euro denominated investment grade bonds globally.
It will also seek to increase returns by investing in high-yield bonds with minimum rating of B-. Up to 35% of the assets will be deployed in this way, with a target allocation of 25%, whilE maintaining an investment-grade average rating for the whole fund.
See also: Weekly outlook: European sentiment surveys due and AG Barr reports
The new strategy will be co-managed by Stefan Isaacs, deputy CIO for public fixed income, and Matthew Russell. The pair have been managing the M&G (Lux) Short Dated Corporate Bond Fund strategy since 2018.
The Luxembourg-domiciled Article 8 fund will be available for subscription from 25 September until 3 November, and will launch on 7 November.
Isaacs said: “Fixed income is in vogue right now with meaningful yields on offer for the first time in a decade. The inversion of the yield curve means investors can get most of the yield available in corporate bonds without having to stretch to long maturities.
See also: Unexpected fall in inflation opens door to Bank of England rate hold
“This 18-month short maturity strategy can offer an opportunity to lock in compelling positive yield levels available now with relative low risk and high visibility on returns.”
–
PA EVENT: Autumn Congress, September 27th– 29th | RSVP via email
Hosted at The South Lodge Hotel. Transport and accommodation will be provided for the duration of the event.
Our Autumn Congress will serve as a comprehensive platform for discussing the key trends, challenges, and innovations shaping the wealth management landscape. It will bring together thought leaders and industry professionals for enlightening discussions and networking opportunities. Register link |
Sponsors include Alliance Bernstein, Alger, Boston Partners, Baillie Gifford, CCLA, Janus Henderson, GAM, Jupiter AM and much more! Please see the full line-up on our website: AC2023
