M&G (Lux) Short Dated Corporate Bond Fund

ISIN
LU1670717831

Price (29.05.2020)
11.75

% Price Change
0.07

Objective and investment policy

Objective

The fund aims to provide a combination of capital growth and income to deliver a return that is higher than that of the short-dated investment grade corporate bond market over any five-year period.

Investment policy and strategy

Core investment: At least 80% of the fund is invested, directly or via derivatives, in high quality bonds issued by companies from anywhere in the world. These securities can be denominated in any currency.

The fund typically invests in bonds which have short repayment dates and, as a result, it has a low portfolio duration. The fund aims to hedge any non-euro assets back to euro.

Other investments: The fund may invest in bonds issued by companies with a longer time to repayment and uses derivatives to reduce their sensitivity to interest rate movements. The fund may also invest in lower quality bonds, government bonds and cash or assets that can be turned into cash quickly.

Derivatives: The fund may invest via derivatives and use derivatives to reduce the risks and costs of managing the fund.

Strategy in brief: The bonds held in the fund are generally issues due to be repaid within a short period to minimise the effect of interest rate movements on the fund’s value.

Asset allocation and bond selection are at the heart of the fund’s investment process. The investment manager has the flexibility to spread the portfolio across issuers, sectors and countries, supported by in-depth research by an in-house team of analysts.

Benchmark: Markit iBoxx EUR Corporates 1-3 year Index

The benchmark is a comparator against which the fund’s performance can be measured. The index has been chosen as the fund’s benchmark as it best reflects the scope of the fund’s investment policy. The benchmark is used solely to measure the fund’s performance and does not constrain the fund's portfolio construction.

The fund is actively managed.The investment manager has complete freedom in choosing which investments to buy, hold and sell in the fund. The fund’s holdings may deviate significantly from the benchmark’s constituents.

For unhedged and currency hedged share classes, the benchmark is shown in the share class currency.

You can find more information about the objective and investment policy of the fund in the Prospectus.

Risks associated with the fund

The value and income from the fund's assets will go down as well as up. This will cause the value of your investment to fall as well as rise. There is no guarantee that the fund will achieve its objective and you may get back less than you originally invested.

Investments in bonds are affected by interest rates, inflation and credit ratings. It is possible that bond issuers will not pay interest or return the capital. All of these events can reduce the value of bonds held by the fund.

The fund may use derivatives to profit from an expected rise or fall in the value of an asset. Should the asset's value vary in an unexpected way, the fund may lose as much as or more than the amount invested.

The fund is exposed to different currencies. Derivatives are used to minimise, but may not always eliminate, the impact of movements in currency exchange rates.

The hedging process seeks to minimise, but cannot eliminate, the effect of movements in exchange rates on the performance of the hedged share class. Hedging also limits the ability to gain from favourable movements in exchange rates.

In exceptional circumstances where assets cannot be fairly valued, or have to be sold at a large discount to raise cash, we may temporarily suspend the fund in the best interest of all investors.

The fund could lose money if a counterparty with which it does business becomes unwilling or unable to repay money owed to the fund.

Further details of the risks that apply to the fund can be found in the fund's Prospectus.

Other information

The Fund allows for the extensive use of derivatives.


The performance webpage for this fund is currently being reconfigured. In the interim, for performance information, please refer to the latest Fund Factsheet which can be found in the Literature section.

Fund Team

Matthew Russell

Matt Russell - Fund manager

Matthew 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 was also appointed fund manager of the M&G Gilt & Fixed Interest Fund in July 2015. Matthew 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.

 Team member biography
Ben Lord

Ben Lord - Deputy Manager

Ben Lord is manager of the M&G (Lux) Global Corporate Bond Fund and deputy fund manager of the M&G (Lux) European Inflation Linked Bond Fund and M&G (Lux) Short Dated Corporate Bond Fund. He is also co-fund manager of the M&G Corporate Bond Fund and the M&G Strategic Corporate Bond Fund, as well as manager of the M&G UK Inflation Linked Corporate Bond Fund, M&G Global Corporate Bond Fund and M&G Index Linked Bond Fund, all UK-authorised OEICs. Prior to joining M&G in 2007, Ben worked at Gordian Knot as a credit analyst covering global financial institutions. He obtained an MA (Hons) from the University of Edinburgh and is a CFA charterholder.

 Team member biography
Ana Gil

Ana Gil - Investment specialist

Ana Gil joined M&G in 2012 as an associate investment specialist covering M&G’s fixed interest fund range. Prior to working at M&G, Ana was initially an analyst at HSBC Private Bank, and then joined HSBC Global Asset Management as part of the institutional sales team. She holds a bachelor's degree in law and finance from Pontificia Comillas University (ICADE) in Madrid and is a CFA charterholder. Ana is fluent in Spanish, English and Italian.

 Team member biography

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The above materials and/or information is for general guidance only and should not be relied upon as, or treated as a substitute for, specific advice. Neither M&G Securities Limited nor its affiliates accept any responsibility for any reliance on any of the information contained in these materials or any direct or indirect loss which may arise therefrom. If you are in any doubt about the contents above, you should seek independent professional financial advice.