Experts in managing credit
M&G’s credit analyst research team is one of the largest and most experienced in Europe. The team, made up of sector specialists with an average of more than ten years of experience, produce proprietary credit ratings for every company that we cover.
This credit research sits at the heart of our fundamental credit team’s value-based approach. It enables the team to find value across the credit market spectrum, and deliver a consistent investment style, philosophy and process across the portfolios that we run.
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Consistent investment philosophy across credit asset classes
Highly experienced, stable and diverse portfolio management team
One of the largest most experienced credit research teams in Europe
Source as at 30 June 2024
*Headcount and AUM shown here is for the fundamental credit team. It is supported by a team of seven investment specialists. The credit analyst team is a central team that provides credit analysis to all M&G’s fixed income investment teams.
We believe in a bottom-up investment approach
Many fund managers favour a top-down investment approach, but we believe this can introduce volatility and inconsistency, being both highly directional and often becoming crowded (popular) trades.
Adding value through relative and fundamental opportunities
Our market-facing portfolio managers have both our analysts’ proprietary ratings and those of the leading credit rating agencies at their fingertips.
Our approach works through the cycle
It is not dependant on market liquidity and at certain points can be especially effective, particularly where the market experiences episodes of volatility, illiquidity, fear, panic or turmoil.
Building highly diversified portfolios is key
This helps ensure that no unexpected credit event is large enough to influence our overall approach to taking risk.
Our credit solution capabilities
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.
- Fund size: €5.88 billion*
- Objective: The fund seeks to return 0.75% gross of fees p.a. above its benchmark index over every 5-year period. The M&G European Credit Investment Fund aims to take advantage of opportunities primarily in investment grade corporate bonds denominated in Euros. The fund may also invest in GBP, USD and CHF denominated debt, and use futures and swaps for efficient portfolio management.
- Investment Policy: The Fund invests at least 70% of its Net Asset Value in EUR-denominated Investment Grade corporate bonds, Asset-Backed Securities and preference shares. The Fund may invest up to a maximum of 20% of its Net Asset Value in Asset Backed Securities. Issuers of these securities may be located in any country, including emerging markets. The Fund does not take currency views and aims to hedge any non-EUR assets back to EUR. The Fund may invest up to 15% of its Net Asset Value in below Investment Grade debt securities and may invest in Convertible Bonds including up to 10% of its Net Asset Value in Contingent Convertible Debt Securities. The Fund seeks to make investments that meet the ESG Criteria, applying an Exclusionary Approach as described in the precontractual annex to the Fund's Prospectus.
- Recommended holding period: This Fund is designed for investors who have an investment time horizon of at least five years.
- Leverage: The Fund’s expected average level of leverage under normal market conditions will generally not exceed 300% of the Fund’s Net Asset Value when calculated in accordance with the sum of notionals approach.
- Benchmark: ICE BofA Euro Corporate Index. The fund is actively managed.
- Fund Manager: Gaurav Chatley
- Fund launch date: 12 April 2011
*As at July 31 2024
Please note that the fund promotes Environmental/Social (E/S) characteristics and while it does not have as its objective a sustainable investment, it will have a minimum proportion of 20% of sustainable investments.
You can find the fund sustainability-related disclosure here
- Fund size: €3.90 billion*
- Objective: A performance target of 1-month EURIBOR + 3-5% gross p.a. over every 5-year period. Accessing the credit risk premium while minimising interest rate and FX exposure
- Investment Policy: The Fund will invest at least 70% of its Net Asset Value in corporate and government bonds, cash and near cash and Asset Backed Securities, denominated in any currency. The fund is actively managed. The investment manager has complete freedom in choosing which assets to buy, hold and sell in the fund and there are no restrictions on the extent to which the fund's performance may deviate from the one of the benchmark.
- Recommended holding period: This Fund is designed for investors who have an investment time horizon of at least five years.
- Leverage: The Fund’s expected average level of leverage under normal market conditions will generally not exceed 900% of the Fund’s Net Asset Value when calculated in accordance with the sum of notionals approach.
- No benchmark: A flexible and unconstrained approach free from the ties of a benchmark. The fund is actively managed.
- Fund manager: Richard Ryan
- Fund launch: 04 March 2013
*As at July 31 2024
- Fund size: €295.47 million*
- Objective: The fund aims to outperform the benchmark. The fund seeks to return 1% gross of fees p.a. above its benchmark index over every 5-year period. The M&G European High Yield Credit Investment Fund invests in a diversified portfolio of high yield bonds primarily denominated in Euros. The fund may allocate to non-Euro denominated debt (USD, GBP and CHF).
- Investment Policy: The fund will invest at least 70% of its Net Asset Value in below Investment Grade corporate and government bonds and Asset Backed Securities, denominated in any European currency. The fund is actively managed. The investment manager has complete freedom in choosing which assets to buy, hold and sell in the fund and there are no restrictions on the extent to which the fund's portfolio and performance may deviate from the ones of the benchmark.
- Recommended holding period: This Fund is designed for investors who have an investment time horizon of at least five years.
- Leverage: The Fund’s expected average level of leverage under normal market conditions will generally not exceed 300% of the Fund’s Net Asset Value when calculated in accordance with the sum of notionals approach.
- Benchmark: ICE BofA European Currency Non-Financial High Yield 2% Constrained Developed Market Index. The fund is actively managed.
- Fund Manager: David Fancourt
- Fund launch: 6 March 2013
*As at July 31 2024
Please note that the fund promotes Environmental/Social (E/S) characteristics and while it does not have as its objective a sustainable investment, it will have a minimum proportion of 20% of sustainable investments.
You can find the fund sustainability related disclosure here
- Fund size: €2.26 billion*
- Objective: The M&G Sustainable European Credit Investment Fund is designed to deliver +0.75% above its benchmark index over every 5-year period. The M&G Sustainable European Credit Investment Fund (‘The fund’) aims to take advantage of opportunities primarily in investment grade corporate bonds denominated in euros and applies a number of ESG focused exclusions to ensure all securities meet our minimum ESG and sustainability criteria. The fund may also invest in GBP, USD and CHF denominated debt, and use futures and swaps for efficient portfolio management.
- Investment Policy: The fund aims to achieve total return (the combination of income and capital growth) in excess of the Bloomberg MSCI Euro Corporate ESG BB+ Sustainable SRI Bond Index by 0.75% (before fees per annum) over any five-year period. The Fund will invest at least 70% of its Net Asset Value in EUR-denominated investment grade corporate bonds, Asset Backed Securities, and preference shares. The Sub-Fund invests in securities that meet the ESG Criteria Norms-, sector- and/or values-based exclusions apply to investments. The ESG Criteria including the fund's exclusions approach can be found on the M&G website. The fund is actively managed. The investment manager has complete freedom in choosing which assets to buy, hold and sell in the fund and there are no restrictions on the extent to which the fund's portfolio and performance may deviate from the ones of the benchmark.
- Recommended holding period: This Fund is designed for investors who have an investment time horizon of at least five years.
- Leverage: The Fund’s expected average level of leverage under normal market conditions will generally not exceed 200% of the Fund’s Net Asset Value when calculated in accordance with the sum of notionals approach.
- Benchmark: Bloomberg MSCI Euro Corporate ESG BB+ Sustainable SRI Bond Index. The fund is actively managed.
- Fund Manager: Gaurav Chatley
- Fund launch: 7 October 2021
*As at July 31 2024
Please note that the fund promotes Environmental/Social (E/S) characteristics and while it does not have as its objective a sustainable investment, it will have a minimum proportion of 51% of sustainable investments.
You can find the fund sustainability-related disclosure here.
- Fund size: €1.19 billion*
- Objective: The M&G Sustainable Total Return Credit Investment Fund is designed to deliver the same return objective of 3-5% above 1-month EURIBOR as the base TRCI strategy for a comparable level of risk over every 5-year period. The M&G Sustainable Total Return Credit Investment Fund aims to maximise total return principally by exploiting long term risk premia. The fund will aim to provide investors with attractive returns from capital and income from a diversified pool of debt and debt like assets, and applies a number of ESG focused exclusions to ensure all securities meet our minimum ESG and sustainability criteria. These will include, but are not limited to, debt instruments with a fixed, variable or floating rate coupon.
- Recommended holding period: This Fund is designed for investors who have an investment time horizon of at least five years.
- Leverage: The Fund’s expected average level of leverage under normal market conditions will generally not exceed 300% of the Fund’s Net Asset Value when calculated in accordance with the sum of notionals approach.
- No benchmark: 1-month EURIBOR. The fund is actively managed.
- Fund Manager: Richard Ryan
- Fund launch: 14 October 2021
*As at July 31 2024
Please note that the fund promotes Environmental/Social (E/S) characteristics and while it does not have as its objective a sustainable investment, it will have a minimum proportion of 51% of sustainable investments.
You can find the fund sustainability-related disclosure here.
This is a marketing communication. Please refer to the prospectus and to the KID before making any final investment decisions.
Please find the risks associated with these funds below:
Market risk: The value of investments and the income from them will rise and fall. This will cause the Sub-Funds' price, as well as any income paid by the Sub-Funds, to fall as well as rise. There is no guarantee the Sub-Funds will achieve their objectives, and you may not get back the amount you originally invested.
Credit Risk: The value of the Sub-funds may fall if the issuer of a fixed income security held is unable to pay income payments or repay its debt (known as a default).
Interest Rate Risk: When interest rates rise, the value of the Sub-funds is likely to fall.
Derivatives Risk: The Sub-funds may use derivatives to gain exposure to investments and this may cause greater changes in the Sub-funds’ price and increase the risk of loss.
Counterparty Risk: Some transactions the Sub-funds make, such as placing cash on deposit, require the use of other financial institutions. If one of these institutions defaults on their obligations or becomes insolvent, the Sub-funds may incur a loss.
Asset-Backed Securities Risk: The assets backing mortgage and asset-backed securities may be repaid earlier than required, resulting in a lower return.
Contingent Convertible Debt Securities Risk: Investing in contingent convertible debt securities may adversely impact the Sub-funds should specific trigger events occur and the Sub-funds may be at increased risk of capital loss.
Currency & Exchange Rate Risk: Movements in currency exchange rates can adversely affect the return of your investment.
ESG Data Risk: ESG information from third-party data providers may be incomplete, inaccurate or unavailable. There is a risk that the investment manager may incorrectly assess a security or issuer, resulting in the incorrect inclusion or exclusion of a security in the portfolio of the Sub-funds.
Liquidity Risk: In difficult market conditions, the funds may not be able to sell a security for full value or at all. This could affect performance and could cause the funds to temporarily defer or suspend redemptions their shares.
Below Investment Grade Debt Securities Risk: Such securities generally carry a greater risk of default and sensitivity to adverse economic events than higher rated debt securities.
Please note, investing in these funds means acquiring units or shares in a fund, and not in a given underlying asset such as building or shares of a company, as these are only the underlying assets owned by the funds.
Further details of the risks that apply to each fund can be found in the fund's Prospectus.