M&G Short Dated Corporate Bond A

Aims for income and capital stability by focusing on short-dated debt instruments.

  • 26.04p
    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.

  • -
    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?

  • 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!

  • 0.50%
    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).

  • 0.66%
    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.

  • 1.20%
    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

The Fund is focused on money market and short-dated instruments, with the majority of the portfolio invested in floating rate notes (FRNs) and in short dated corporate bonds. The Fund primarily holds high quality, 'A' rated, senior debt investments, issued by large corporations or by international financial institutions.

Fund summary

Sector £ Corporate Bond
Structure OEIC
Launched January, 1993
Size £255m
Yield 1.20%
Charging basis Income
Dividends paid 31 Mar, 30 Jun, 30 Sep, 31 Dec

Charges

Standard initial charge 0.00%
Initial charge via Bestinvest 0.00%
Additional bid/offer spread 0.00%
Annual management charge 0.50%
Ongoing charges figure 0.66%

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Investment process

The fund aims to provide income along with capital stability by focusing on money market and short-dated instruments, with the majority of the portfolio invested in floating rate notes and short dated corporate bonds.

Manager research

Average monthly relative returns

  • 15/16 -0.43%
  • 16/17 0.13%
  • 17/18 -0.08%
  • 18/19 -0.59%
  • 19/20 -0.16%

Bestinvest MRI

  • 3 years -0.28%
  • 5 years -0.23%
  • Career -0.26%
  • 3 years 24.20%
  • 5 years 24.80%
  • Career 15.90%

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

Matthew Russell

Russell joined M&G in 2007 and was appointed fund manager of the M&G Short Dated Corporate Bond Fund in September 2013, having served as deputy fund manager since 2011. He joined M&G as a fund managers’ assistant covering the retail fixed interest fund range. He has a BSc in economics from the University of Birmingham and is also a CFA charterholder.

Track record

Matthew Russell has 7.2 years experience of managing mutual funds in this sector. Over this period the average monthly return relative to the benchmark index has been -0.26%. During the worst period of relative performance (from December 2013 - March 2020) there was a decline of 27% relative to the index. The worst absolute loss has been 4%.

Periods of worst performance

Absolute -4.00% (February 2020 - March 2020)
Relative -27.00% (December 2013 - March 2020)

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.

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Top 10 holdings

Data accurate as at 31 July 2020

5.4669% Hm Treasury United Kingdom Dmo 1.5% Gilt 22/01/21 Gbp0.01
5.456% Hm Treasury United Kingdom Dmo 0.125% Treasury Gt 31/01/23 Gbp0.01
4.214% Germany(Federal Republic Of) 0% Bds 08/10/21 Eur1000
2.0971% Santander Uk Plc Fltg Rt Cvd Bds 12/02/28 Gbp100000reg S
1.9949% Permanent Master Issuer Plc Res Mtg Bkd Frn 15/07/58 Gbp Reg S A2 1
1.7629% Natwest Markets Plc 3.625% Snr Nts 29/09/22 Usd200000reg S
1.7419% Quadient Sas 2.25% Bds 03/02/25 Eur100000
1.591% Northern Trust Sterling E
1.5545% Metropolitan Life Global Funding I 1.125% Nts 15/12/21 Gbp100000
1.5421% Silverstone Master Issuer Plc Res Mtg Bckd Frn 21/01/70 Gbp18-1 2aregs
Source: Trustnet

Sector breakdown

Banks 21.00%
Asset/Mortgage-Backed Securities 18.00%
Government Bonds 10.00%
Technology 8.00%
Automotive 7.00%
Investment Grade Bonds 7.00%
Asset/Mortgage-Backed Securities 4.00%
Insurance 4.00%
Health Care 4.00%
Mortgage & Secured Bonds 3.00%

Portfolio

At least 50% in FRNs and short dated corporate bonds. Non-sterling exposure is hedged Maximum holdings:In any individual AAA holding 5%, AA 5%, A 4%, BBB 3%, any high yield issuer holding 2%.

Key Investor Information

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