M&G Global Macro Bond Fund
A flexible, globally diversified bond fund combining a top-down investment approach with asset allocation decisions and bottom-up security selection.
Fund information
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For more information on the financial terms used in this page, please consult the glossary.
Who we are
We have a proud history of managing bond funds for retail investors, often introducing specialist bond funds ahead of our rivals. In 1980, we launched the M&G Gilt and Fixed Interest Income Fund, a fund based around an expanding UK government bond market at the time. In 1994, we launched the M&G Corporate Bond Fund, aimed at the capturing value from a growing corporate bond market. In 1998, we launched the UK’s first retail high yield corporate bond fund, the M&G Global High Yield Bond Fund. These funds are all still going strong today.
What are bonds?
Fixed income securities, also known as bonds, are loans that are usually taken out by a government or company. They normally pay bondholders a set rate of interest over a given time period, at the end of which the amount borrowed, the principal, is repaid by the bond issuer. The regular interest payments, which are known as coupons, can provide investors with a predictable income stream over the life of the bond, until it matures. The price of a bond can vary over its life, meaning investors can also profit from any increase in its value if they sell before maturity.
Potential income generation from regular interest payments.
Capital preservation, since bonds can be considered less risky in terms of losing value.
There are also risks and considerations with investing in bonds:
- Investments in bonds are affected by interest rates, inflation and credit ratings, and it's possible that bond issuers will not pay interest or return the capital. All of these events can reduce the value of bonds held by a fund.
- High yield bonds usually carry greater risk that the bond issuers may not be able to pay interest or return the capital.
- Investing in emerging markets (countries in the process of catching up with developed economies, with rapid growth and increasing industrialisation) involves a greater risk of loss due to greater political, tax, economic, foreign exchange, liquidity and regulatory risks, among other factors. There may be difficulties in buying, selling, safekeeping or valuing investments in such countries.
- The value of your investment can go down as well as up so you might not get back the amount you put in. When you take money out and/or when we take a charge, this will reduce the value of your investment.
For more information, please refer to our Guide to Bonds.
Why choose M&G for fixed income?
Our investment teams draw on decades of experience, supported by a well-established in-house research platform. This enables detailed analysis of the companies, governments and other organisations that issue bonds to raise money from investors. We assess their financial strength, business models and ability to repay their debts, alongside consideration of material ESG factors, where relevant.
A value-driven approach underpins our fixed income investment process. By combining views on the wider economy with careful assessment of bond valuations and long-term financial strength, we seek to identify attractive investment opportunities while aiming to protect investors from losses if market conditions deteriorate or borrowers face financial difficulties.
Collaboration is central to our investment approach. Our global teams share insights across sectors and regions within a consistent framework, encouraging rigorous debate, robust idea testing and decisions supported by strong research and analysis.
Our range of funds
While each fund differs in terms of its specific investment strategy, they can be grouped into different categories, according to their characteristics.
Building block funds
Funds within the equities and fixed income asset classes are what we consider 'building block' funds. Funds within these asset classes should be held as part of a wider investment portfolio. In other words you should consider creating a ‘diversified portfolio’, where an investment portfolio is spread across a blend of asset classes like equities and bonds. As different asset types are likely to perform well at different times and in different market conditions, investing in a good mix means you won't have ‘all your eggs in one basket’ and could mean more consistent returns over the long term too.
Find out more about diversification in our handy guides:
Our fixed income funds
Fixed income strategies that can invest across a breadth of different assets, and are designed to perform across different market environments.
Fixed income strategies that invest mainly in investment grade corporate bonds globally, regionally or in specific markets. Investment grade bonds are those issued by companies with higher credit ratings, meaning they are considered to be at lower risk of default on their debts. Corporate bond yields may be higher and they can offer greater returns than government bond funds, but they potentially incur greater risk.
Fixed income strategies that invest mainly in government bonds globally or in specific markets. They potentially incur lower risk but may offer lower returns than corporate bond funds.
Fixed income strategies that invest mainly in high yield bonds globally. High yield bonds are those issued by companies with lower credit ratings, meaning they are considered to be at higher risk of default on their debts. They potentially incur greater risk but may offer higher returns than both government bond funds and investment grade corporate bond funds.
Fixed income strategies that invest mainly in bonds issued or guaranteed by governments of and companies based in, or doing most of their business in, emerging markets globally. Emerging markets are countries in the process of catching up with developed economies, with rapid growth and increasing industrialisation. Investments in emerging markets are generally considered to be riskier than those in developed markets.
Before selecting funds you should read an up-to-date version of your chosen fund's 'Key Documents': Key Investor Information Document (KIID), Prospectus and, for funds with sustainability characteristics or with a sustainability label, the Consumer-Facing Disclosure (CFD). These can be found on each fund page and provide important information to help you understand the funds.
Choosing a fund
Like with any investment, you should carefully consider if fixed income investments fit with your personal aims and objectives before investing. Importantly, you should also check that the profiles of the funds match your own investment timeframe and appetite for risk and reward. You can find out more about the risks you need to consider before investing in our Key Investor Information Documents (KIIDs).
Start investing
Once you’ve chosen your fund(s), the next step is deciding which investment product you’d like to hold them in. You can invest in fixed income funds through our full range of products – ISAs, Junior ISAs, OEICs and Savings Plans – depending on your goals and circumstances.
If you already know which fund and product are right for you, and have spoken to a financial adviser (if you have one), you can take the next step whenever you feel ready. Getting started is easy.
The views expressed on this webpage should not be taken as a recommendation, advice or forecast. We are unable to give financial advice. If you are unsure about the suitability of your investment, speak to your financial adviser.
The value of investments will fluctuate, which will cause prices to fall as well as rise and you may not get back the original amount you invested.
M&G Investment Management Limited (MAGIM), M&G Alternative Investment Management Limited (MAGAIM), M&G Securities Limited (MGSL) and M&G Financial Services Limited (MGFS) are registered in England and Wales under numbers (936683, 2059989, 90776, 923891) respectively. The registered address of MAGIM, MAGAIM, MGSL, and MGFS is 10 Fenchurch Avenue, London, EC3M 5AG. MAGIM, MAGAIM, MGSL, and MGFS are authorised and regulated by the Financial Conduct Authority (“FCA”) under numbers 119328, 122011, 122057, 122058 respectively.