M&G launching global corporate bond fund
M&G launches a global corporate bond fund on 5 September in a bid to meet client demand.
The asset management company says investors are increasingly looking for diversification outside of UK and European investment grade corporate bond markets and it hopes this new fund will meet that requirement.
The fund will be managed by Ben Lord and will focus on investment grade issues from major markets, also considering high yield and government bonds. It will be hedged back to US dollars.
At launch, Lord says the fund will be neutral US issues, overweight sterling and underweight euro denominated bonds.
Lord currently manages the M&G Short Dated Corporate Bond fund, which he now passes control of to Matthew Russell, who has been the fund’s deputy since 2011.
This is the first M&G fund of this type that will be available for retail investors; minimum investment is £500 and the annual management charge will be 1 per cent.
Patrick Connolly, financial planner at Chase de Vere, says diversifying fixed interest investmnets into international markets is a good approach and the fund will be a 'useful option for those who want specific exposure to this asset class'.
'However, we prefer to use strategic bond funds where the managers have more flexibility in terms of not just where they invest, but the types of bonds they also use.
The M&G Optimal Income fund is a good choice here, as are Kames Strategic Bond and Henderson Strategic Bond fund,' he adds