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Alternatives

New ways to put investments to work

‘Alternatives’ simply means investments outside the conventional categories of stocks, bonds, cash and property ownership.

At M&G, we have been investing in alternatives for over 20 years, providing innovative ways to get new projects off the ground and to help existing businesses thrive and grow.  In many cases, we offer businesses flexible, affordable alternatives to bank finance, which became increasingly difficult to obtain following the global financial crisis.

 

Case study - Alder Hey Children’s Hospital

Discover how M&G customers provided the funds to redevelop Alder Hey Children’s Hospital, allowing the hospital trust to place the needs of its patients at the forefront of a radical new design.


Among the alternative investments we make on behalf of our customers are commercial mortgages, infrastructure lending, leveraged loans, direct lending to both medium and large companies and housing associations, as well as financing construction of affordable housing, new student accommodation, offices, and solar parks.   We now have over £6 billion invested in the UK social housing sector on behalf of our customers.

What most of these investments have in common is that (unlike public bond financing) the terms are usually negotiated bilaterally or in small groups with like-minded investors and are usually private.  The investors are generally institutional customers such as pension funds and insurance companies, who are looking for a greater level of security than available in the public bond markets, a deeper understanding of the companies and projects they are lending to and of course, the predictable returns that many of these investments yield.

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.

About M&G Investments

Whowe invest for​​

Find out who our customers are, and some of the reasons why they invest with us.

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​Whatwe invest in

Discover some of the investments we make for our customers across the world.

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Howwe invest

Find out about our approach to investing - from our fund managers.

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