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SKANDIA M&G HIGH YIELD CORPORATE BOND LF - Fund overview

No Bestinvest rating


Overview of SKANDIA M&G HIGH YIELD CORPORATE BOND LF

This fund aims to generate a high total return and income by investing predominantly in high yield corporate bonds within the UK. The minimum exposure to high yield bonds will be 50%. The mandate of the fund does allow investment outside the UK, all currency exposure is hedged to Sterling. The management team combines M&G's predominant fixed income manager, Jim Leaviss, and their corporate bond manager in Europe, Stefan Isaacs. This fund will carry a higher risk than their other funds.

Standard Initial Charge

No data available.

Fund summary

Sector  –
Product type  INSURANCE BOND
Launched  December, 2000
Size  £6m
Yield 0.0%
Charging basis  –
Dividends paid  –
Bid price 152.90p

Fund Charges

Standard Initial charge
Initial charge via Bestinvest
Additional bid/offer spread 4.97%
Annual management charge
Total expense ratio
Reduction in yield (10yr) 0.51%

Bestinvest says


This fund benefits from one of the most respected bond teams in the peer group with a proven track record across market cycles. However, it should be noted that the fund carries a higher risk than their other funds due to its high yield nature. The fund's performance has generally been consistent with the broader IMA Sterling High Yield universe despite the broad mandate of the fund. The management team combines M&G's pre-eminent fixed income manager, Jim Leaviss, and their corporate bond manager in Europe, Stefan Isaacs. This fund will carry a higher risk than their other funds.

Portfolio

skandia m&g high yield corporate bond lf asset allocation illustration
Allocation Proportion
Equity 0%
High yield bonds 69%
Quality bonds 27%
Property 0%
Commodities
Hedge
Fund cash 4%
skandia m&g high yield corporate bond lf equity geographic illustration
Allocation Proportion
UK 0%
Europe 0%
Nth America 0%
Japan 0%
Pacific 0%
Other Equity 0%
skandia m&g high yield corporate bond lf equity capitalisation illustration
Allocation Proportion
Large Caps 0%
Mid Caps 0%
Small Caps 0%

Investment process


The manager combines his top down macro-economic (global economic prospects) view with individual bond specific analysis. This reflects his view that the high yield bond market is 60% driven by credit risk (company specific risk) and 40% by interest rate risk. The other key point to emphasise is that M&G's Bond team believe that the ability to avoid mistakes at an individual stock level is of greater importance over the long term than consistently picking the best performers in the asset class. However this fund is likely to carry a higher risk than the manager's other funds. M&G have an extensive fixed income credit research team that currently numbers over 20 people. They are divided between sectors and internally rate bonds. Watch and risk lists are then created for the manager to consider, however, these are for guidance purposes only. The manager is allowed discretion to buy bonds on these lists. To increase diversification the portfolio will typically have more than 100 bond issuers at any one time.

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. Past performance or any yields quoted should not be considered reliable indicators 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; they may also have risks relating to the geographical area, industry sector and/or underlying assets in which they invest. Prevailing tax rates and relief are dependent on your individual circumstances and are subject to change.

Bestinvest (Brokers) Ltd & Bestinvest (Consultants) Ltd are authorised and regulated by the Financial Services Authority. This site is for UK Investors only

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