M&G’s £123 billion market-leading Fixed Income investment business has launched the M&G Global Corporate Bond Fund (the Fund), in response to increasing UK investor demand for large-scale bond diversification.
Fixed income allocations are firmly back in favour and are offering exciting yield opportunities relative to other asset classes as high interest rates and inflation continue to drive heightened volatility across the asset class.
At more than three times the size of the global equity market, the $127 trillion global bond market continues to create ever more opportunity for active managers with deep investment expertise to find compelling value and portfolio diversification opportunities through active credit selection.
Having delivered first percentile performance for European investors over the past 10 years, the M&G Global Corporate Bond Fund has launched with £164 million of external investment and is now available to a growing cohort of UK investors actively seeking to diversify their fixed income allocations to maximise greater potential for returns outside of the UK market.
Drawing on M&G’s deep heritage in fixed income investing, the Fund will be managed by Ben Lord with Mario Eisenegger as co-manager, supported by a team of industry-leading in-house credit analysts across the UK, Asia, Europe and the US, offering unparalleled access to a diverse global opportunity set.
Commenting on the launch, Jim Leaviss, M&G’s CIO of Fixed Income, says: “In our view, we could see big opportunities for bond investors in 2024. With a wall of cash waiting to re-enter the market after last year’s high interest rates and continued inflation concerns sparking further interest rate reductions, a boom in the US bond markets looks likely. If the Federal Reserve cuts rates as early as March, this could trigger falling bond yields and lock in significant gains for early investors.”
Alex Matcham, Head of UK Wholesale, adds: “Global market dynamics have put fixed income allocations back on the table for UK wealth managers who are increasingly looking to diversify away from the UK bond markets. After more than 10 years of strong performance for our European clients, we are pleased to bring this fund to the UK market. M&G has a long track record of delivering best-in-class fixed income solutions to investors and are excited to leverage our strong international expertise to further support clients who see global bonds as part of growing UK client portfolios.”