Fixed Income (Bonds)

Who are we?

The M&G Fixed Income team is one of Europe’s largest bond investors, with a strong track record of active management across fixed income assets globally.

What are bonds?

Fixed income securities, also known as bonds, are loans that are usually taken out by a government or company. They normally pay bondholders a set rate of interest over a given time period, at the end of which the amount borrowed, the principal, is repaid by the bond issuer. The regular interest payments, which are known as coupons, can provide investors with a predictable income stream over the life of the bond, until it matures. The price of a bond can vary over its life, meaning investors can also profit from any increase in its value if they sell before maturity.

What do we do?

Our established team of investment professionals aims to deliver performance over the long term across a range of fixed income products.

We manage a wide range of funds, covering the spectrum of global government and corporate bonds. 

How do we deliver?

We seek to identify the best relative and absolute value opportunities by taking advantage of the extensive and diverse experience across both our investment team and our large in-house team of credit analysts.

A focus on long-term performance allows investment teams to exercise conviction, while considering risk management at the same time.

Our range

While each fund differs in terms of its specific investment strategy, they can be grouped into different categories, according to their characteristics.

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 a fund.

High yield bonds usually carry greater risk that the bond issuers may not be able to pay interest or return the capital.

The value of 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 and you may get back less than you originally invested.

 

Flexible bond funds

Fixed income strategies that can invest across a breadth of different assets, and are designed to perform across different market environments.

Corporate bonds

Fixed income strategies that invest mainly in investment grade corporate bonds globally, regionally or in specific markets. Investment grade bonds are those issued by companies with higher credit ratings, meaning they are considered to be at lower risk of default on their debts. They potentially incur greater risk but may offer higher returns than government bond funds.

M&G Corporate Bond Fund
M&G European Corporate Bond Fund
M&G Strategic Corporate Bond Fund
M&G Short Dated Corporate Bond Fund
M&G UK Inflation Linked Corporate Bond Fund

Government bonds

Fixed income strategies that invest mainly in government bonds globally or in specific markets. They potentially incur lower risk but may offer lower returns than corporate bond funds.

M&G Gilt & Fixed Interest Income Fund
M&G Global Government Bond Fund
M&G Index-Linked Bond Fund

High yield bonds

Fixed income strategies that invest mainly in high yield bonds globally. High yield bonds are those issued by companies with lower credit ratings, meaning they are considered to be at higher risk of default on their debts. They potentially incur greater risk but may offer higher returns than both government bond funds and investment grade corporate bond funds.

M&G Global Floating Rate High Yield Fund
M&G Global High Yield Bond Fund
M&G Global High Yield ESG Bond Fund

Emerging market bonds


Fixed income strategies that invest mainly in high yield bonds globally. High yield bonds are those issued by companies with lower credit ratings, meaning they are considered to be at higher risk of default on their debts. They potentially incur greater risk but may offer higher returns than both government bond funds and investment grade corporate bond funds.

M&G Emerging Markets Bond Fund
M&G Emerging Markets Monthly Income Fund*

*At least 25% invested in equities

ESG Plus

Fixed income strategies designed to deliver long-term returns with environmental, social and governance (ESG) criteria applied within the investment strategy, or explicitly alongside an ESG-related objective.

M&G Global High Yield ESG Bond Fund

 

For more information, please view our M&G Guide to Bonds.

Planet+

Investing for a more positive future.


Contact the team

Contact us