M&G launches Asian Fixed Income strategy to deliver resilient income through quality USD bonds

Key features of the M&G (Lux) Asian Quality Income Fund

Fund domicile: Luxembourg

Fund currency: USD

Launch date: 30 September 2025

Investment policy: The fund aims to provide a combination of capital growth and income with a focus on generating income from quality Asian investment grade debt securities over any three-year period, while applying environmental, social and governance (ESG) criteria. At least 80% of the fund is invested in investment grade bonds issued or guaranteed by companies domiciled, incorporated or carrying out most of their business in any Asian country, or issued or guaranteed by Asian governments or their agencies. The fund invests in debt securities which are either rated by an internationally recognised credit rating agency like Standard & Poor’s, Moody’s or Fitch or, if unrated, are subject to an internal rating process to determine their credit quality. Currency exposure is typically in US dollars or hedged back to the US dollar. The recommended minimum holding period for the fund is three years. In normal market conditions, the fund’s expected average leverage – how much it can increase its investment position by borrowing money or using derivatives – is 150% of the fund’s net asset value.

The Fund is actively managed and its benchmark is the iBoxx USD Asia ex Japan Investment Grade Index (Restricted) (Far East).

The main risks associated with this Fund:

• 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.
• 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 fund.
• The fund may invest in Chinese onshore bonds traded on the China Interbank Bond Market via Bond Connect. Investing in the onshore (domestic) market of the PRC is subject to the risks of investing in emerging markets and other risks of investments applicable to the PRC, as well as to additional risks that are specific to the PRC market.
• The fund 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 fund will incur a loss. The fund’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 fund
• 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 fund can be exposed to different currencies. Movements in currency exchange rates may adversely affect the value of your investment.
• 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 fund.

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. Further details of the risks that apply to the fund can be found in the fund’s Prospectus.

Sustainability information:

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.