Corporate Bond Fund

ISIN
GB0032137860

Price (26.06.2019)
19.26

% Price Change
-0.33

Objective and investment policy

Objective

The fund aims to provide income and capital growth.

Investment policy and strategy

Core investment: At least 70% of the fund is invested in sterling-denominated bonds issued by companies.

Other investments: The fund also invests in bonds issued by government bonds (usually of developed countries), high yield bonds and cash or assets that can be turned into cash quickly.

Use of derivatives: Derivatives may be used to invest indirectly in core and other investments. They may also be used to reduce risks and costs and to manage the impact of changes in currency exchange rates on the fund’s investments.

Strategy in brief: The fund manager has the freedom to decide which investments to hold in the fund, based on his assessment of a combination of macroeconomic, asset, sector and stock-level factors. Spreading investments across issuers and industries is an essential element of the fund’s strategy and the manager is assisted in his selection of individual bonds by an in-house team of analysts.

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.

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.

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.

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.

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

Richard Woolnough

Richard Woolnough - Fund manager

Richard Woolnough joined M&G in January 2004 and is fund manager of the M&G (Lux) Optimal Income Fund, as well as of the M&G Optimal Income Fund, the M&G Corporate Bond Fund and the M&G Strategic Corporate Bond Fund, three of the company’s flagship UK-authorised fixed interest OEIC funds. Richard 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 - Deputy 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
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

Rating is at a fund level

Silver Standard

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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The value of investments, and the income from them, will fluctuate. This will cause fund prices to fall as well as rise and you may not get back the original amount you invested. We are unable to give financial advice. If you are unsure about the suitability of your investment, speak to your financial adviser. The views expressed on this web page should not be taken as a recommendation, advice or forecast.