M&G Strategic Corporate Bond I

  • 1159.10p
    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.

  • 1497.37p
    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.

  • 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 19 January 2021, fund data last updated 30 September 2014

The fund aims to maximise total return (the combination of income and growth of capital) by investing predominantly in investment grade corporate bonds. This is essentially a higher alpha version of the M&G Corporate Bond fund and in spite of its name sits in the IA £ Corporate Bond sector. It can invest up to 20% in government or high yield bonds and has the capability to manage rate risk more aggressively than some peer group funds. All non-sterling exposure is hedged. 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 £2,148m
Yield 2.80%
Charging basis Income
Dividends paid Jan, Apr, Jul & Oct

Charges

Standard initial charge 0.00%
Initial charge via Bestinvest 0.00%
Annual management charge 0.50%
Ongoing charges figure 0.66%

Allocation

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Investment process

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. 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 global credit 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 either government or 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 year to 9 year range.

One of the less constrained funds within its IA £ Corporate Bond peer group. The mandate explicitly provides for some high yield exposure and the ability to manage interest rate sensitivity to a greater degree. Since launch the manager has used this optionality to good effect to drive total returns across all market conditions. M&G have invested heavily in their retail fixed income team in recent years to match the ever increasing AUM. Currently the fund is not being actively marketed. This is managed by one of the City’s top fixed income strategists.

Manager research

Average monthly relative returns

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  • 17/18 0.00%
  • 18/19 0.00%
  • 19/20 0.00%
  • 20/21 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

Absolute 0.00% ()
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

Consumer Goods 11.00%
Banks 9.00%
Insurance 9.00%
Telecommunications 9.00%
Asset/Mortgage-Backed Securities 9.00%
Utilities 7.00%
Money Market 6.00%
Energy 5.00%
Basic Industries 4.00%
Asset/Mortgage-Backed Securities 4.00%

Portfolio

Around 300 names.

Key Investor Information - Income

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Key Investor Information - Accumulation

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