M&G Corporate Bond A Inc GBP
This factsheet should be viewed in conjunction with the Key Investor Information
Document (KIID) as both provide important information. The KIID is accessible from
the link on the right.
Factsheets contain information about the features of the fund such as the investment
objective, fund region and past performance.
Some funds offer income units, accumulation units or both. The unit type you choose
will affect the way income generated from the fund is treated. With income units,
income is paid into your nominated account. With accumulation units income is retained
within the fund, increasing the value of your holding.
All Investments carry an element of risk. In particular, the value of Investments
and any income from them can go down as well as up and you may not get back what
you originally invested.
In addition, investing in funds is subject to specific risks. Details
of these risks are contained in the Key Investor Information Document which is
designed to provide important information about funds as well as the risks involved.
Fund Objective
The Fund aims to achieve a higher total return (the combination of income and growth of capital) from investment than would be obtainable in UK government fixed interest securities (ie gilts) of similar maturities.
Investment Information
Management Information
|
Manager name
|
Richard Woolnough
|
|
Manager since
|
27/02/2004
|
Richard Woolnough
Richard Woolnough joined M&G in January 2004 and is fund manager of the M&G Optimal Income Fund, the M&G Corporate Bond Fund and the M&G Strategic Bond Fund, three of the company's flagship fixed interest funds. Richard began his career at Lloyds Merchant Bank in 1985, moving to Italian insurer Assicurazioni Generali two years later, followed by SG Warburg. In 1995, he became a fund manager at Old Mutual. Richard graduated from the London School of Economics with a BSc in economics.
About the fund provider
Fund provider
M&G was founded under its original name of Municipal and General Securities in 1901 as the financial arm of a British engineering company. The launch of M&G was built on core values – including innovation and transparency – that they continue to be committed to today. M&G revolutionised British finance in 1931 when it launched the first-ever mutual fund for the general public. Since then the firm has concentrated on the management of investment funds. In 1999 Prudential plc acquired M&G. This allowed M&G to retain and indeed strengthen the core values, client focus and investment processes that had built their brand, within an increasingly competitive marketplace. Based in London, M&G now manages investment funds for its individual and institutional clients, and also acts as European investment manager for Prudential. M&G International Investments Ltd, the international fund distribution business of M&G, was launched in 2001.
With over 80 years of experience behind them, M&G are one of the largest investors in the UK today with over £216.9 billion* of funds under management, as at 30th September 2012, and employing over 1,000 members of staff in key locations in the UK and Continental Europe.
Fund Codes
|
Citicode
|
MA85
|
|
SEDOL
|
3128567
|
At a glance
|
Fund Type
|
OEIC
|
Income Yield 
|
3.23%
|
|
Ongoing Charges (on 31/12/2012)
|
1.16%
|
Where is this fund primarily investing?
Income
|
Income Yield
|
3.23%
|
|
Income Frequency (per annum)
|
4
|
|
Income Payment Dates
|
May 31 2013
|
|
More dates
|
| Aug 31 2013 |
| Nov 30 2013 |
| Feb 28 2014 |
What Barclays gets paid
If you decide to invest, Barclays Investments will receive payment from the fund manager out of the annual management charge you pay. The amount we receive is based on the value of your holding but is not an additional cost to you. The information to the right shows the percentage and an example amount that Barclays would receive on an annual basis for as long as the fund is held.
|
Annual Rate
|
0.53%
|
What Barclays will receive based on
a £10,000 investment
|
£53
|
Risk and reward profile
| • The above risk number is based on the rate at which the value of the Fund has moved up and down in the past. |
| • This risk number is based on historical data and may not be a reliable indicator of the future risk profile of the Fund. |
| • The risk number shown is not guaranteed and may change over time. |
| • The lowest risk number does not mean risk free. |
| The Fund has the above risk number because of the effect of the following risks: |
| • The value of stockmarket investments, and the income from them, will fluctuate. This will cause the Fund price to fall as well as rise and you may not get back the original amount you invested. |
| • Any investment in international companies means that currency exchange rate fluctuations will have an impact on the Fund. |
| • There is a risk that one or more countries will exit the Euro and re-establish their own currencies. In light of this uncertainty or in the event that this does occur, there is an increased risk of asset prices fluctuating or losing value. It may also be difficult to buy and sell securities and issuers may be unable to repay the debt. In addition, there is a risk that disruption in Eurozone markets could give rise to difficulties in valuing the assets of the Fund. In the event that it is not possible to carry out an accurate valuation of the Fund, dealing may be temporarily suspended. |
| • Derivatives – The Fund may use derivatives for the purposes of meeting the Fund’s objective, and protecting the capital value from risk. We anticipate that the use of derivatives will not materially alter the risk profile of the Fund or increase price fluctuations, in comparison to equivalent funds that cannot invest in derivatives.
The Fund may take short positions through the use of derivatives which are not backed by equivalent physical assets. Short positions reflect an investment view that the price of the underlying asset is expected to fall in value. Accordingly, if this view is incorrect and the asset rises in value, the short position could involve greater risk due to the theoretical possibility of an unlimited rise in its value.
Some derivative transactions may be entered into directly with an eligible person or institution (a “counterparty”). There is a risk that the counterparty may not meet its obligations or becomes insolvent which could cause the Fund to incur a loss. |
| • Fixed income securities – Changes in the interest rate will affect the value and the interest earned from the fixed income securities held by the Fund. When interest rates rise, the capital value of the Fund is likely to fall and vice versa.
The value of the Fund will fall if the issuer of a fixed income security held is unable to pay income payments or repay its debt (known as a default). A default, expected default, or downgrading will make a fixed income security harder to sell as its value and income are likely to fall. Fixed income securities that pay a higher level of income usually have a lower credit rating because of the increased risk of default. The higher the rating the less likely it is that the issuer will default, but ratings are
subject to change. |
| • Liquidity – In difficult market conditions the value of certain fund investments may be less predictable than normal. In some cases this may make such investments harder to sell at the last quoted market price, or at a price considered to be fair. Such conditions could result in unpredictable changes in the value of your holding. |
| • The Fund invests mainly in one geographic region or country. It is therefore more vulnerable to the market sentiment of that specific geographic region or country. This type of fund can carry a higher risk and can experience larger than average price fluctuations when compared to a fund with a broader investment universe. |
Past performance overview - fund vs. sector
|
A -
|
|
M&G Corporate Bond A Inc GBP
|
|
B -
|
|
Sector: UT Sterling Corporate Bond
|
Past performance is not a guide to future performance
Cumulative Past Performance
|
|
3 mth |
6 mth |
1 yr |
3 yr |
5 yr |
|
M&G Corporate Bond A Inc GBP
|
3.95% |
3.07% |
10.50% |
26.19% |
58.99% |
|
UT Sterling Corporate Bond
|
3.97% |
3.92% |
11.99% |
23.89% |
38.82% |
|
Relative to Sector
|
-0.02% |
-0.82% |
-1.33% |
1.85% |
14.53% |
|
Rank within sector
|
61/103 |
84/101 |
76/96 |
41/91 |
7/84 |
Discrete Past Performance
|
|
31/03/12 –31/03/13 |
31/03/11 –31/03/12 |
31/03/10 –31/03/11 |
31/03/09 –31/03/10 |
31/03/08 –31/03/09 |
|
M&G Corporate Bond A Inc GBP
|
9.11% |
10.75% |
4.23% |
21.00% |
2.13% |
|
UT Sterling Corporate Bond
|
10.76% |
6.88% |
4.42% |
24.53% |
-11.28% |
|
Relative to Sector
|
-1.48% |
3.62% |
-0.19% |
-2.83% |
15.12% |
|
Rank within sector
|
79/96 |
14/96 |
62/91 |
62/91 |
10/84 |
Discrete Past Performance figures are calculated on a bid/mid (buying) price basis with net income (dividends) reinvested
Asset Allocation - as at June 30, 2012
| Rank |
Key |
Name |
%
Weighting |
| 1 |
|
UK Fixed Interest |
58.38% |
| 2 |
|
European Fixed Interest |
16.97% |
| 3 |
|
US Fixed Interest |
14.35% |
| 4 |
|
North American Fixed Interest |
3.34% |
| 5 |
|
OTHERS |
2.23% |
| 6 |
|
German Fixed Interest |
2.02% |
| 7 |
|
Money Market |
1.30% |
| 8 |
|
Spanish Fixed Interest |
0.81% |
| 9 |
|
Swiss Fixed Interest |
0.60% |
Region Breakdown - as at June 30, 2012
| Rank |
Key |
Name |
%
Weighting |
| 1 |
|
UK |
54.99% |
| 2 |
|
USA |
14.35% |
| 3 |
|
OTHERS |
7.18% |
| 4 |
|
France |
6.57% |
| 5 |
|
Netherlands |
6.31% |
| 6 |
|
Jersey & Guernsey |
3.39% |
| 7 |
|
Cayman Islands |
2.88% |
| 8 |
|
Germany |
2.02% |
| 9 |
|
Money Market |
1.30% |
| 10 |
|
Ireland |
1.01% |
Sector Breakdown - as at March 31, 2013
| Rank |
Key |
Name |
%
Weighting |
| 1 |
|
Investment Grade Bonds |
86.40% |
| 2 |
|
Government Bonds |
4.70% |
| 3 |
|
High Yield Bond |
4.30% |
| 4 |
|
OTHERS |
3.00% |
| 5 |
|
Money Market |
1.60% |
Top Holdings - as at April 30, 2013
| Rank |
Name |
%
Weighting |
Rank |
Name |
%
Weighting |
| 1 |
TREASURY 3.75% GILT 22/07/52 GBP0.01 |
2.83% |
6 |
EDF 6.125% NTS 02/06/34 GBP50000 |
0.77% |
| 2 |
NORTHERN TRUST STERLING D |
1.92% |
7 |
LLOYDS TSB BANK PLC 5.125% NTS 07/03/25 GBP100000 |
0.77% |
| 3 |
EDF 5.5% BDS 17/10/41 GBP100000 |
0.96% |
8 |
AT&T INC 4.875% UNSEC BDS 01/06/44 GBP100000 |
0.76% |
| 4 |
IMPERIAL TOBACCO FINANCE 9% GTD NTS 17/02/22 GBP50000 |
0.89% |
9 |
AMGEN INC 5.5% BDS 07/12/26 GBP100000 |
0.70% |
| 5 |
TREASURY 3.25% IDX LKD GILT 22/01/44 GBP0.01 |
0.88% |
10 |
WELLS FARGO BANK NA 5.25% SUBORD NTS 01/08/23 GBP50000 |
0.68% |