A global, diversified strategy seeking to maximise total return through all stages of the economic and credit cycles, while trying to hedge unwanted and unrewarded interest rate and currency risks.
Why now?
With credit spreads near historically tight levels, today’s market demands a selective and flexible approach.
Uncertain environments
Patience and selectivity are crucial as market conditions evolve.
Flexibility to find value
Identify value across the global credit spectrum.
Income with resilience
Combines yield potential with high-quality credit.
Why M&G Total Return Credit Investment Fund?
Flexible, diversified and high-quality credit portfolio
Differentiated, total return approach with zero duration target
A repeatable and consistent investment process
- Flexibility to invest in a broad range of credit assets: investment grade corporate bonds, high yield corporate bonds (up to 50%), structured credit
- Diversified portfolio of 500+ high-quality bonds across regions and sectors, with a strong focus on European credit
- Focusing solely on bottom-up credit selection to deliver returns and add value through active management
- 100% duration-hedged target, aiming to mitigate interest rate volatility, ideal for uncertain macro environments
- A cash + 3-5% performance target over a market cycle
- Richard Ryan, lead portfolio manager since strategy’s inception, brings 24 years of experience
- One of the largest and most experienced fundamental credit research teams in Europe, with over 50 credit analysts
Source: M&G, May 2025. The views expressed in this document should not be taken as a recommendation, advice or forecast.
“Our approach to credit works through the cycle. It is not dependent on market liquidity and can be especially effective, particularly when the market experiences episodes of volatility, illiquidity, fear, panic or turmoil.”
Richard Ryan
Fund manager
Key fund risks:
- Market risk: The value of investments and the income from them will rise and fall. This will cause the Fund price, as well as any income paid by the Fund, to fall as well as rise. There is no guarantee the Fund will achieve its objective, and you may not get back the amount you originally invested.
- Credit Risk: The value of the Fund 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 Fund is likely to fall.
- Currency & Exchange Rate Risk: Movements in currency exchange rates can adversely affect the return of your investment.
- Derivatives Risk: The Fund may use derivatives to gain exposure to investments and this may cause greater changes in the Fund’s price and increase the risk of loss.
- Counterparty Risk: Some transactions the Fund makes, 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 Fund may incur a loss.
- 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.
- 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 Fund should specific trigger events occur and the Fund may be at increased risk of capital loss.
- Liquidity Risk: In difficult market conditions, the fund may not be able to sell a security for full value or at all. This could affect performance and could cause the fund to temporarily defer or suspend redemptions of its shares.
- Further details of the risks that apply to the fund can be found in the fund's Prospectus.