Marketing communication. For Investment Professionals only
“Against an uncertain economic backdrop, we believe high yield FRNs oﬀer an appealing combination of features, providing an attractive income stream, while their defensive attributes should leave them well placed to withstand any future turbulence in high yield markets.”
How high yield ﬂoating rate notes work
Illustrative example: Providing an attractive income stream as interest rates rise
Source: M&G, 2022. For illustrative purposes only. Assumes no change in credit spread. *Floating rate coupon automatically adjusted in line with changes in interest rates.
|31 July 2022||€2.193,99 million|
|Fund launch date||13 September 2018|
|Benchmark*||ICE BofAML Global Floating Rate High Yield 3% Constrained (EUR Hedged) Index|
|Sector||Morningstar Global High Yield Bond – EUR Hedged sector|
|EUR A-H share class|
|Initial charge||Max. 4,00%|
Source of fund facts: M&G as at 31.07.22.
*The benchmark is a comparator against which the fund’s performance can be measured. The index has been chosen as the fund’s benchmark as it best reﬂects the scope of the fund’s investment policy. The benchmark is used solely to measure the fund’s performance and does not constrain the fund's portfolio construction. The fund is actively managed. The investment manager has complete freedom in choosing which investments to buy, hold and sell in the fund. The fund’s holdings may deviate signiﬁcantly from the benchmark’s constituents.
**The ongoing charge is based on estimated expenses as at 01.01.22.
This is a marketing communication. Please refer to the prospectus and to the KIID before making any final investment decision.
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 and you may get back less than you originally 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.
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 will incur a loss. The fund’s use of derivatives may be extensive and exceed the value of its assets (leverage). This has the effect of magnifying the size of losses and gains, resulting in greater fluctuations in the value of the fund.
Investing in emerging markets involves a greater risk of loss due to greater political, tax, economic, foreign exchange, liquidity and regulatory risks, among other factors. There may be difficulties in buying, selling, safekeeping or valuing investments in such countries.
The fund is exposed to diﬀerent currencies. Derivatives are used to minimise, but may not always eliminate, the impact of movements in currency exchange rates.
The hedging process seeks to minimise, but cannot eliminate, the effect of movements in exchange rates on the performance of the hedged share class. Hedging also limits the ability to gain from favourable movements in exchange rates.
Further details of the risks that apply to the fund can be found in the fund’s Key Investor Information Document and Prospectus.
The fund allows for the extensive use of derivatives.
Investing in this fund means acquiring units or shares in a fund, and not in a given underlying asset such as a building or shares of a company, as these are only the underlying assets owned by the fund.
For an explanation of the terms used in this document, please refer to the glossary on our website here
For Investment Professionals only. Not for onward distribution. No other persons should rely on any information contained within.
The Instrument of Incorporation, Prospectus, Key Investor Information Document, annual or interim Investment Report and Financial Statements, are available in English, French or Dutch, free of charge from www.mandg.com/investments/be.
Before subscribing investors should read the Prospectus, which include a description of the investment risks relating to these funds. Please read the KIID before making a decision to invest. The information contained herein is not a substitute for independent investment advice.
M&G Luxembourg S.A. may terminate arrangements for marketing under the new Cross-Border Distribution Directive denotification process.
Complaints handling information is available in English from : www.mandg.com/investments/professional-investor/en-be/complaints-dealing-process
This financial promotion is issued by M&G Luxembourg S.A. Registered Office: 16, boulevard Royal, L‑2449, Luxembourg.