fund

Rated

This is one of our rated funds. They’re the ones our experts believe will do well for investors over the longer term. Top of the class!

M&G UK Inflation Linked Corporate Bond PP

  • 104.20p
    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.

  • 106.60p
    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!

  • 0.35%
    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).

  • 0.35%
    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.

  • 0.00%
    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 22 October 2021

The Fund aims to protect the value of capital and income from inflation by generating a return consistent with or greater than UK inflation over the medium to long term by investing predominantly in a portfolio of index linked, quality corporate bonds. By investing in corporate bonds the manager is in a position to deliver a real yield premium to UK index linked gilts. The majority of returns from this vehicle are in the form of capital returns from indexation, income yields will be low. 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 £ Strategic Bond
Structure OEIC
Launched
Size £1,096m
Yield 0.00%
Charging basis Income
Dividends paid 31 May, 30 Nov

Charges

Standard initial charge 0.00%
Initial charge via Bestinvest 0.00%
Annual management charge 0.35%
Ongoing charges figure 0.35%

Allocation

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Investment process

The fund invests mainly in investment grade inflation-linked corporate bonds, floating rate notes (including asset backed securities) and other short dated fixed income instruments (including bonds not linked to inflation). Derivatives may be used in pursuit of the fund objective and for efficient portfolio management purposes. Index linked corporate bond exposure may also be achieved indirectly by investing in a combination of index linked gilts and credit derivatives. Generally speaking where non sterling securities are purchased these will be hedged to £. Fund duration will be kept deliberately short in order to minimise sensitivity to changes in real yields and maximise sensitivity to inflation outcomes.

Investing in a range of fixed interest securities this fund should perform well when inflation is high or rising. It benefits from an experienced fixed interest team at M&G and is likely to deliver a yield premium to index linked gilts. We expect this fund to be less volatile than traditional index linked gilts as it is deliberately structured to minimise sensitivity to changes in real interest rates.

Manager research

Average monthly relative returns

  • 16/17 0.00%
  • 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

Banks 25.00%
Investment Grade Bonds 22.00%
Government Bonds 16.00%
Financial Services 10.00%
Asset/Mortgage-Backed Securities 3.00%
Energy 3.00%
Automotive 3.00%
Utilities 2.00%
Retail 2.00%
Fixed Interest 2.00%

Key Investor Information - Income

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Key Investor Information - Accumulation

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