M&G Global High Yield Bond A

  • 47.47p
    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.

  • 141.78p
    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!

  • 1.25%
    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).

  • 1.41%
    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.

  • 4.60%
    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 26 November 2020, fund data last updated 15 December 2011

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.

Fund summary

Sector £ High Yield
Structure OEIC
Launched
Size £1,412m
Yield 4.60%
Charging basis Income
Dividends paid Last day of each month

Charges

Standard initial charge 3.00%
Initial charge via Bestinvest 0.00%
Annual management charge 1.25%
Ongoing charges figure 1.41%

Allocation

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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.

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 IA 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.

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

Energy 12.00%
Health Care 12.00%
Media 10.00%
Basic Industries 8.00%
Retail 8.00%
Capital Goods 6.00%
Telecommunications 5.00%
Consumer Goods 5.00%
Government Bonds 4.00%
Money Market 4.00%

Portfolio

At least 50% invested in high yield bonds. Maximum exposure to leveraged loans will be 10%. The manager can buy preference shares but cannot use derivatives.

Key Investor Information - Income

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Key Investor Information - Accumulation

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