Fixed maturity bond funds

Diversified bond portfolios that give visibility over likely returns at a set maturity date. 

 

These provide a way of investing in a diversified portfolio of bonds that can give investors advance knowledge of the potential return they might receive when the product matures. Such strategies can be of particular interest when bond yields are at potentially attractive levels.

A specialized/qualified fixed maturity investment team builds and manages the funds, harnessing the expertise of M&G’s large team of experienced credit analysts. Our range of funds can meet specific maturities, yield, credit rating and diversification requirements.

Why M&G?

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Billions € AUM Public Fixed Income

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Fixed Income specialists

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Credit analysts

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Average years of experience of analysts

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Launch of the first mutual fund

Source: M&G, as at 31 December 2023.

Why now?

After central banks around the globe hiked interest rates aggressively in recent years to combat soaring inflation, yields on corporate bonds have been at attractive levels. With inflation moderating and the economic outlook more uncertain, central banks are now beginning to consider the need for rate cuts. We believe this could be a good time to consider fixed maturity strategies, as these may allow investors to ‘lock in’ current yield levels.

Our Fixed Maturity Bond Capabilities open for subscription

M&G (Lux) Fixed Maturity Bond Fund 1

Credit Mix Term Launch Date Last Subscription Maturity date
Min. 80% Investment Grade
Max. 20% High Yield
2 Years 16/04/2024 16/10/2024 16/04/2026

Fixed Maturity Bond Capabilities post subscription period

Fund name Credit Mix Term Launch Date Last Subscription Maturity date
M&G (Lux) Fixed Maturity Bond Fund 2 Min. 65% Investment Grade
Max. 35% High Yield
18 Months 07/11/2023 03/11/2023 07/05/2025

This is a marketing communication. Please refer to the Prospectus and the KID before making any final investment decision.

Key funds risks

  • Market risk: The value of investments and the income they generate will rise and fall. This will cause the Funds prices, as well as any income paid by the Funds, to fall as well as rise. There is no guarantee the Funds will achieve their objectives, and you may not get back the amount you originally invested.
  • Credit Risk: The value of the 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 Funds is likely to fall.
  • High yield bonds usually carry greater risk that the bond issuers may not be able to pay interest or return the capital.
  • 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 the funds can be found in the fund's Prospectus

Learn more about our fixed income expertise

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The views expressed on this webpage should not be taken as a recommendation, advice or forecast. Past performance is not a guide to future performance.

An explanation of the terms used in this document can be found on the glossary.