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M&G EUROPEAN HIGH YIELD BOND A - Fund overview

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Overview of M&G EUROPEAN HIGH YIELD BOND A

This fund invests primarily in sub-investment grade euro denominated corporate bonds with the aim of maximising total returns, mainly through the provision of a high level of income. Most of the time the portfolio will not be hedged back into sterling. The manager, Stefan Isaacs, has traditionally avoided the poorest quality bonds, focusing instead on BB and B rated bonds where he believes the best risk-adjusted returns lie. The fund therefore tends to be positioned relatively cautiously versus its benchmark.

Standard Initial Charge

3.00% 0.00%

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Fund summary

Sector  Global Bonds
Product type  OEIC
Launched  October, 2002
Size  £55m
Yield 6.7%
Charging basis  INCOME
Dividends paid  28/2, 30/5, 30/8, 30/11.
Bid price(inc) 39.19p
Bid price(acc) 79.82p

Fund Charges

Standard Initial charge 3.00%
Initial charge via Bestinvest 0.00%
Additional bid/offer spread 0.00%
Annual management charge 1.25%
Total expense ratio 1.44%
Reduction in yield (10yr) 1.44%

Bestinvest says


No information available.

Portfolio

m&g european high yield bond a asset allocation illustration
Allocation Proportion
Equity 1%
High yield bonds 84%
Quality bonds 10%
Property
Commodities
Hedge
Fund cash 5%

No data available.

m&g european high yield bond a equity capitalisation illustration
Allocation Proportion
Large Caps 80%
Mid Caps 15%
Small Caps 5%

Investment process


The objective is to maximise total return primarily through a high level of income. The portfolio will consist of fixed interest securities denominated in any European currency, the majority will be high yielding issues of corporate bonds and on occasion European emerging market sovereign debt; a small position may also be held in Gilts and investment grade bonds. The intention is to provide investors with a portfolio of high yield securities diversified by industry and country. Credit analysis focuses on a company's ability to pay and the bond's covenant structure. This is combined with macro economic views, which will also influence industry allocations. The group's size and influence enables the team to benefit from direct access to company management, mainly through one to one meetings.

The value of your investments and the income from them can go down as well as up and you can get back less than you originally invested. Any yields quoted cannot be taken as a reliable indicator of future returns. Before investing in funds please check the specific risk factors on the key features document or refer to our risk warning notice as some funds can be high risk or complex. Prevailing tax rates and relief are dependent on your individual circumstances and are subject to change.

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