Convertibles

Who are we?

M&G’s Convertibles team specialise in investing in a type of asset called convertible bonds.

What are convertible bonds?

They are fixed income securities, or bonds, that can be exchanged for company shares at times during their lives.

Convertibles provide bondholders with a regular income from the company that issued them, in the form of interest on the amount borrowed, until a fixed maturity date. At this point, the amount borrowed, or the principal, is due to be repaid. However, unlike conventional bonds, they also come with an option that allows investors to convert them into a certain number of company shares. This can be done within a set time period and at a specified price, called the conversion price. As the share price of the underlying company increases, the value of the associated convertible also increases.

What do we do?

We aim to take advantage of the special characteristics of convertibles. Since these bonds can be turned into a predetermined number of shares in the company that issued them, investors in convertibles can participate in share price rises while retaining a degree of bond-like protection against stockmarket falls.

How do we deliver?

We offer a convertibles fund that seeks to provide investors with the best balance of risk and reward that is available from this asset class. Our convertibles fund is available in a variety of share classes to suit investors across numerous currencies.

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.

To find out more about the M&G Global Convertible Fund, please click on the link below:

M&G Global Convertibles Fund

 

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