M&G (Lux) Global Corporate Bond Fund

ISIN
LU1670713335

Price (18.04.2019)
11.63

% Price Change
0.18

Objective and investment policy

Objective

The fund aims to provide a combination of capital growth and income to deliver a return that is higher than that of the global investment grade corporate bond market over any five-year period.

Investment policy and strategy

Core investment: At least 80% of the fund is invested in investment grade bonds issued by companies from anywhere in the world, including emerging markets*, and denominated in any currency.

Other investment: The fund also invests in bonds issued by governments, corporate high yield bonds, cash and assets that can be turned quickly into cash.

Use of derivatives: Derivatives may be used to invest indirectly in bonds. Derivatives may also be used to manage risks and reduce costs, as well as to offset the impact of currency exposures arising from the fund’s non-US dollar investments.

For more information on the types of bonds held and derivatives used, please refer to the Prospectus, which can be found by visiting [**VARIABLE**]

* Emerging market countries are defined as those included within the MSCI Emerging Markets Index and/or those included in the World Bank’s definition of developing economies, as updated from time to time.

Strategy in brief: The investment manager selects investments based on an assessment of macroeconomic factors such as economic growth, interest rates and inflation.

Spreading investments across issuers, industries and countries is an essential element of the fund’s strategy and the investment manager is assisted in the selection of individual bonds by an in-house team of analysts. The investment manager seeks to invest in bonds believed to offer the best relative value opportunities in the investment grade corporate bond universe.

Performance comparator: The fund is actively managed. The Barclays Global Aggregate Corporate Index (USD Hedged) Index is a point of reference against which the performance of the fund may be measured.

Glossary terms

Bonds: Loans to governments and companies that pay interest.

Derivatives: Financial contracts whose value is derived from other assets.

High yield bonds: Bonds issued by companies considered to be riskier and therefore generally paying a higher level of interest.

Investment grade corporate bonds: Bonds issued by a company with a medium or high credit rating from a recognised credit rating agency. They are considered to be at lower risk from default than those issued by companies with lower credit ratings.

Risks associated with the fund

The value of investments and the income from them will rise and fall. This will cause the fund price, as well as any income paid by the fund, to fall as well as rise. There is no guarantee the fund will achieve its objective, and you may not get back the amount you originally invested.

When interest rates rise, the value of the fund is likely to fall.

The value of the fund may fall if the issuer of a fixed income security held is unable to pay income payments or repay its debt (known as a default).

The fund may use derivatives with the aim of profiting from a rise or a fall in the value of an asset (for example, a company’s bonds). However, if the asset’s value varies in a different manner, the fund may incur a loss.

Changes in currency exchange rates will affect the value of your investment.

If the share class is hedged (H share class), it aims to mirror the performance of another share class. We cannot guarantee that the hedging objective will be achieved. The hedging strategy will limit holders of the hedged share class from benefiting if the hedged share class currency falls against the US dollar.

Where market conditions make it hard to sell the fund’s investments at a fair price to meet customers’ sale requests, we may temporarily suspend dealing in the fund’s shares.

Some transactions the fund makes, such as placing cash on deposit, require the use of other financial institutions (for example, banks). If one of these institutions defaults on their obligations or becomes insolvent, the fund may incur a loss.

Other information

The Fund allows for the extensive use of derivatives

Performance

The value of investments will fluctuate, which will cause fund prices to fall as well as rise and you may not get back the original amount you invested. The level of any income earned by the fund will fluctuate. Past performance is not a guide to future performance. 

Source: Price: State Street. Performance: Morningstar. Performance figures are on a price to price basis with income reinvested. Performance figures may not reflect all relevant charges.

Please note that the Morningstar Category performance data in this tool where shown, is from the default Morningstar database, which contains all the share classes for each fund available across Europe, Asia and Africa. This can differ from the comparative sector data in M&G factsheets which is from the same database, but showing only the most appropriate share class to represent each fund, and for just those funds available in Europe. Neither Morningstar nor its Information Providers can guarantee the accuracy, completeness, timeliness, or correct sequencing of any of the Information on the Web site, including, but not limited to Information originated by Morningstar, licensed by Morningstar from Information Providers, or gathered by Morningstar from publicly available sources. There may be delays, omissions, or inaccuracies in the Information.

 

Fund Team

Ben Lord

Ben Lord - Fund manager

Ben Lord joined M&G in 2007 and is the fund manager of the M&G UK Inflation Linked Corporate Bond Fund and deputy fund manager of the M&G (Lux) European Inflation Linked Bond Fund. Ben has also managed the M&G Global Corporate Bond Fund from launch in September 2013 and was appointed fund manager of the M&G Index Linked Bond Fund in July 2015. Ben previously worked at Gordian Knot as a credit analyst covering global financial institutions. He obtained an MA (Hons) from the University of Edinburgh and is a CFA charterholder.

 Team member biography
Wolfgang Bauer

Wolfgang Bauer - Deputy Manager

Wolfgang Bauer is co-manager of M&G Absolute Return Bond Fund and the Luxembourg-authorised M&G (Lux) Absolute Return Bond Fund, and fund manager of the M&G (Lux) European Inflation Linked Corporate Bond Fund. He is also deputy fund manager of the M&G Global Corporate Bond Fund and the M&G European Corporate Bond Fund. In January 2018, he was appointed deputy fund manager of the M&G UK Inflation Linked Corporate Bond Fund. Wolfgang joined M&G in 2012 as part of the Investment Graduate Programme. He joined the M&G Retail Fixed Interest team from the Real Estate Finance team in January 2014, focusing on US investment grade credit. Wolfgang gained a PhD in chemistry from the University of Cambridge and also holds the Investment Management Certificate (IMC) and is a CFA and CAIA charterholder.

 Team member biography
Mario Eisenegger

Mario Eisenegger - Investment specialist

Mario Eisenegger joined M&G in February 2015 as an associate investment specialist providing support for the retail fixed interest fund range. He was previously at UBS, where he was a senior client advisor to private clients and a deputy branch manager. Mario holds a bachelor of science from the University of Northwestern Switzerland. Mario speaks German and Swiss German.

 Team member biography

Ratings

Rating is at a share class level

3 Star Rating

Ratings as at 31/01/2019. 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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For Investment Professionals only. Not for onward distribution to any other type of client. No other persons should rely on the information contained on this website. Content should therefore be shared responsibly with other investment professionals. The value of investments will fluctuate, which will cause fund prices to fall as well as rise and you may not get back the original amount you invested.