Important information
- The Fund invests primarily in high yield floating rate notes globally, including emerging markets.
- Investments in fixed income securities are subject to interest rate, volatility, credit, sovereign and downgrade risks etc. Investments in below investment grade, unrated and/or high yielding debt instruments are subject to lower liquidity, higher volatility and greater risk of loss of principal and interest than high-rated debt securities.
- The Fund invests in certain emerging markets and may be subject to liquidity, volatility, political, tax, economic and foreign exchange risks.
- The Fund may invest in financial derivative instruments. Investors should note exposure to derivatives may involve additional risks (e.g. counterparty, liquidity, volatility, leverage and over-the-counter transaction risks).
- The Fund may invest in investments denominated in currencies other than the Fund's base currency and subject to currency and exchange risk. The Fund may use derivatives to hedge currency risk. The use of derivatives may not be effective in offsetting the change in value of the currency.
- Certain share classes of the Fund may make distributions out of capital. Payment of dividends out of capital and/or effectively out of capital amounts to a return or withdrawal of part of an investor’s original investment or from any capital gains attributable to that original investment. Any such distribut ions may result in an immediate reduction of the NAV of the share class on the ex-dividend date.
- Investors should not rely solely on this material and should read the offering documents of the Fund for further details including the risk factors.
Overview
Fund description
The fund aims to provide a combination of capital growth and income that is higher than that of the global floating rate high yield bond market (as measured by the ICE BofAML Global Floating Rate High Yield Index (3% constrained) USD Hedged) over any five-year period. At least 70% of the fund is invested in high yield floating rate notes (FRNs), focusing on FRNs issued by companies with a low credit rating, which typically pay higher levels of interest to compensate investors for the greater risk of default. Part of the fund may be invested in other fixed income assets, such as government bonds. Asset exposure is gained through physical holdings and the use of derivatives.
Key facts
Key documents
Historic prices
Fund facts
Performance
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. Past performance is not a guide to future performance.
Cumulative performance
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. It does not constrain the Fund's portfolio construction and the Fund is actively managed. The investment manager has freedom in choosing which assets to buy, hold and sell in the Fund. The Fund’s holdings may deviate significantly from the benchmark’s constituents and as a result the Fund’s performance may deviate significantly from the benchmark.
Source: Morningstar, and M&G. Returns are calculated on a NAV-to-NAV basis, with dividends reinvest for Acc share classes only.
Performance charts © 2025 Morningstar, All Rights Reserved. The information contained within: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete, or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information.
Documents
Investment involves risk and may not be suitable for everyone. Past performance is not indicative of future performance. The value and income from the investment can fluctuate and is not guaranteed. Investors may not get back the amount they invested. Investment returns not denominated in US/HK dollar will expose US/HK dollar-based investors to exchange rate fluctuations. Fund performance will be available after the Fund has attained a 6-month investment track record. Where no past performance is shown there was insufficient data available in that period to provide performance. All periods longer than one year are annualised.
M&G Investments (Hong Kong) Limited has been appointed as the Hong Kong Representative of the funds mentioned herein. Please refer to the offering documents for further details including the risk factors.
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