M&G (Lux) Euro Corporate Bond Fund

ISIN
LU1670629549

Price (20.02.2020)
18.81

% Price Change
0.06

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 European investment grade corporate bond market over any five-year period.

Investment policy and strategy

Core investment: At least 70% of the fund is invested in high quality bonds issued by companies from anywhere in the world. These bonds can be denominated in any European currency. A minimum of 70% of the fund is in euro or hedged back to euro.

Other investments: The fund may invest in government bonds, lower quality bonds, asset-backed securities, contingent convertible bonds and cash or assets that can be turned quickly into cash.

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

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

Benchmark: ICE BofA Merrill Lynch Euro Corporate Index

The benchmark is a comparator against which the fund’s performance can be measured. The index has been chosen as the fund’s benchmark as it best reflects the scope of the fund’s investment policy. The benchmark is used solely to measure the fund’s performance and does not constrain the fund's portfolio construction.

The fund is actively managed. The investment manager has complete freedom in choosing which investments to buy, hold and sell in the fund. The fund’s holdings may deviate significantly from the benchmark’s constituents.


For unhedged and currency hedged share classes, the benchmark is shown in the share class currency.

You can find more information about the objective and investment policy of the fund in the Prospectus.

Risk indicator

Risk level 3

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.

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.

The hedging process seeks to minimise, but cannot eliminate, the effect of movements in exchange rates on the performance of the hedged share class. Hedging also limits the ability to gain from favourable movements in 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.

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.

News

  • M&G Investments // 20/12/2019

    We are making changes to this fund on 12 February 2020. The changes are detailed in our letter to Shareholders.

      Read the full article

Fund Team

Stefan Isaacs

Stefan Isaacs - Fund manager

Stefan Isaacs is deputy head of M&G's Wholesale Fixed Income team and is fund manager of the M&G (Lux) European Corporate Bond Fund. He is also co-fund manager of the M&G (Lux) Global High Yield Bond Fund, M&G (Lux) Floating Rate High Yield Solution, M&G (Lux) Global High Yield ESG Bond Fund and M&G (Lux) Global High Yield Bond 2023 Fund, and deputy fund manager of the M&G (Lux) Optimal Income Fund. Stefan initially joined M&G as a graduate in 2001 and was subsequently promoted to corporate bond dealer specialising in high yield bonds and euro-denominated credit, becoming part of the fund management team in 2006.

 Team member biography
Wolfgang Bauer

Wolfgang Bauer - Deputy Manager

Wolfgang Bauer is manager of the M&G (Lux) European Inflation Linked Corporate Bond Fund and co-manager of the M&G (Lux) Absolute Return Bond Fund. He is also deputy manager of the M&G (Lux) Global Corporate Bond Fund and the M&G (Lux) Euro Corporate Bond Fund. Wolfgang joined M&G in 2012 as part of the Investment Graduate Programme, becoming part of M&G's Wholesale Fixed Income team in January 2014, focusing on US investment grade credit. Wolfgang gained a PhD in chemistry from the University of Cambridge and is a CFA and CAIA 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

3 Star Rating

Rating is at a fund level

Bronze Standard

Ratings as at 31/12/2019. 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.

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.