M&G (Lux) Global Floating Rate High Yield Fund
A defensive approach to high yield investing

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. 

The M&G (Lux) Global Floating Rate High Yield Fund provides access to a globally diversified portfolio of high yield floating rate notes (FRNs) issued by companies or governments from anywhere in the world and denominated in any currency.

High yield FRNs – designed to generate income without undue interest rate risk

How high yield floating rate notes work

Why us?

Floating rate income

Focusing on floating rate bonds issued by high yield companies, this innovative fund is designed to provide income that rises or falls in line with market interest rates with almost no duration risk.

A defensive approach

High yield FRNs also provide a relatively defensive approach to high yield investing, with the large majority of bonds ranked senior-secured in the company’s capital structure.

Experienced credit analysts

Careful bond selection is based on a thorough, bottom-up research of individual credits, with the fund manager supported by a large and experienced team of analysts.

More insights

More Information

The value and income from a 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 a fund will achieve its objective and you may get back less than you originally invested.

Risks associated with this portfolio

The value and income from the portfolio’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 portfolio will achieve its objective 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 portfolio. 

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

The portfolio 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 portfolio will incur a loss. The portfolio’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 portfolio. 

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 portfolio is exposed to different currencies. Derivatives are used to minimise, but may not always eliminate, the impact of movements in currency exchange rates.

In exceptional circumstances where assets cannot be fairly valued or have to be sold at a large discount to raise cash, we may temporarily suspend the portfolio in the best interest of all investors. 

The portfolio could lose money if a counterparty with which it does business becomes unwilling or unable to repay money owed to the portfolio.

Operational risks arising from errors in transactions, valuation, accounting, and financial reporting, among other things, may also affect the value of your investments. 

For any performance shown, please note that past performance is not a guide to future performance. 

Further details of the risks that apply to the portfolio can be found in the Prospectus.

It is also important to note that 

The portfolio allows for the extensive use of derivatives.

UCITS HAVE NO GUARANTEED RETURN AND PAST PERFORMANCE IS NOT A GUIDE TO FUTURE PERFORMANCE

Please note, investing in this portfolio means acquiring units or shares in a portfolio, 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 portfolio.

At least 70% of the portfolio is invested in high yield floating rate notes (FRNs), focusing on FRNs issued by companies with a low credit rating, which typically pay higher levels of interest to compensate investors for the greater risk of default.