M&G (Lux) Global Floating Rate High Yield Fund: Annual review and outlook

15 min read 19 Jan 22

  • High yield floating rate notes (HY FRNs) experienced strong investor demand in 2021, as investors sought to protect themselves against expected interest rate rises and inflation.
  • The M&G (Lux) Global Floating Rate High Yield Fund delivered a positive return, thanks to our decision to increase exposure to physical FRNs and effective security selection, which saw the fund benefit from positions added at low cash prices in 2020 recovering strongly.
  • We believe the outlook for HY FRNs in 2022 is positive, with company profits and interest covering continuing to improve and defaults remaining low.

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This is a marketing communication. Please refer to the prospectus and to the KIID before making any final investment decisions. The value of investments will fluctuate, which will cause prices to fall as well as rise and you may not get back the original amount you invested. The views expressed in this document should not be taken as a recommendation, advice or forecast. Past performance is not a guide to future performance. Please note, investing in this fund 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 fund.

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