M&G Corporate Bond A

  • 42.04p
    Price (Inc)

    These are the shares in the fund that pay out an income to clients. The income is made up of the total dividends – the money a company can pay out to its investors – from the companies in the fund.

  • 79.06p
    Price (Acc)

    These are the shares in the fund that don’t pay out an income to clients. Any dividends – the money a company can pay out to its investors – are reinvested into companies in the fund. Despite no income, the shares should be worth more over time. Good incentive, eh?

  • 3.00% 0.00%

    Initial charge

    Some funds charge you when you first invest, which is aptly known as the initial charge. They’re usually between 3-5% but at Bestinvest, we usually don’t charge you a penny!

  • 1.00%
    Annual management charge

    This is how much the fund management company charges to run the fund. It’s like paying a babysitter, dog sitter or house sitter (that makes well-informed, heavily researched changes to improve your baby/dog/house when needed).

  • 1.16%
    Ongoing charges

    This stands for Ongoing Charges Figure. It’s the cost of running a fund and includes admin fees, manager fees, administration costs, etc.

  • 2.80%
    Yield

    How much the fund is currently paying out in income to investors. It’s NOT to be confused with the overall growth of a fund – a very different thing indeed. It’s also NOT a guarantee of future pay-outs, just a snapshot. This is more what it’s not than what it is…

Prices as at 27 November 2020, fund data last updated 23 February 2012

This is intended to be a plain vanilla corporate bond fund, offering investors a relatively low manager risk alternative within the sector. Exposure to high yield is typically limited to 5%. Whilst the majority of bonds held in the portfolio will be sterling denominated, the manager may also invest in non sterling denominated bonds where these are hedged back into sterling. The fund may also invest up to 20% in gilts. Bonds issued by major governments and companies will be more stable than those issued by emerging markets or smaller corporate issuers; in the event of an issuer experiencing financial difficulty, there may be a risk to some or all of the capital invested. Any historical or current yields quoted should not be considered reliable indicators of future performance.

Fund summary

Sector £ Corporate Bond
Structure OEIC
Launched
Size £3,152m
Yield 2.80%
Charging basis Income
Dividends paid 28 Feb, 30 May, 30 Aug, 30 Nov

Charges

Standard initial charge 3.00%
Initial charge via Bestinvest 0.00%
Annual management charge 1.00%
Ongoing charges figure 1.16%

Allocation

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Investment process

The investment approach is primarily ‘top-down’but the manager also uses bottom up strategies for stock selection, with the ultimate aim of maximising total returns within specific risk controls. The fund manager’s views of the likely direction of macro economic factors such as economic growth, inflation and interest rates are reflected in the portfolio through the active management of, for example, yield curve positioning and duration. Duration will usually be managed to within +/1 year of the benchmark. Macro economic views also influence management decisions on the portfolio’s sector exposures and individual stock credit ratings. Relative to the M&G Strategic Corporate Bond fund, yields levels will generally be more stable.

This fund benefits from one of the most respected bond teams in the peer group with a proven track record across market cycles. The fund is managed with a view to delivering outperformance relative to the peer group. The fund will tend to have a high correlation to the performance of gilts.

Manager research

Average monthly relative returns

  • 15/16 0.00%
  • 16/17 0.00%
  • 17/18 0.00%
  • 18/19 0.00%
  • 19/20 0.00%

Bestinvest MRI

  • 3 years 0.00%
  • 5 years 0.00%
  • Career 0.00%
  • 3 years 0.00%
  • 5 years 0.00%
  • Career 0.00%

Performance figures are based on the average of monthly percentage returns relative to the benchmark index.

Track record

Periods of worst performance

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Relative 0.00% ()

About the MRI

Our unique indicator: the Bestinvest Manager Record Index (MRI) measures the likelihood that the fund manager is adding value through their decisions. It is based on their performance record over the course of their career, adjusted for the amount of risk taken. MRI is an important contributor to our fund rating system but it is also vital to take account of qualitative factors. It is also very important to select funds to form a cohesive portfolio with an appropriate overall risk level.

Allocation

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Sector breakdown

Asset/Mortgage-Backed Securities 10.00%
Utilities 9.00%
Consumer Goods 9.00%
Telecommunications 9.00%
Banks 9.00%
Insurance 7.00%
Government Bonds 6.00%
Mortgage & Secured Bonds 5.00%
Real Estate 5.00%
Asset/Mortgage-Backed Securities 4.00%

Portfolio

Diversified portfolio. Duration is typically managed to within +/- 1 year of the benchmark.

Key Investor Information - Income

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Key Investor Information - Accumulation

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