Bestinvest says
This fund benefits from a manager with a strong track record across all market conditions and fixed income mandates; combined with the resources of the M&G Group, make this a powerful investment proposition. It is more aggressive than the M&G Corporate Bond fund and has more of a total return focus, so the yield may be more variable. However, it is less aggressive than the manager’s M&G Optimal Income fund.
This fund will be more total return in focus than the existing M&G Corporate Bond Fund, consequently yield levels may potentially be more variable. Fund positions will also generally be more focused. Although the structure of the fund will initially be determined on a top down basis, at any one time top down, sector and stock selection calls could all be major contributors to performance. Specialist credit teams are also available at M&G to provide the fund manager with additional insight into the credit and high yield markets. As a sophisticated UCITS 3 product, the manager may also use derivative instruments to reflect his views, although these will generally not be used to apply notional leverage to credit exposure in the fund. The fund may hold up to 20% in government bonds and 20% in high yield bonds; convertibles, preference shares and foreign bonds (hedged into sterling) may also be included..Fund duration will usually be managed to within a 3.5-9 year range.