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The materials and any documents distributed together herein (the “Materials”) are being made available to a limited number of institutional investors as defined under the Securities and Futures Act, Chapter 289 of Singapore (the “SFA”) by M&G Investments for information. The Materials are confidential and may not be shown, copied, reproduced, re-transmitted, re-distributed, in whole or in part, or otherwise given to any person other than the authorised recipient without the prior written consent of M&G Investments. While care has been taken in the preparation of the Materials, M&G Investments makes no representation or warranty, whether express or implied, and accepts no responsibility for the accuracy or completeness or reliability of any statement in the Materials including, without limitation, any target returns, projections or other forward-looking statements. To the maximum extent permitted by law, M&G Investments expressly disclaims all or any liability which may arise out of the provision to or use by any person of the information contained herein.

The Materials have not been registered as a prospectus with the Monetary Authority of Singapore and the Materials do not constitute an advertisement or an offer for the issue sale or purchase of any securities or any recommendation in relation to investment in the subject matter of the Materials or any investment or other advice. The Materials provided in this website are provided solely for your information. The information in this website is qualified in its entirety by the terms therein. Nothing in this website shall constitute an offer to sell or a solicitation of an offer to buy or the calling to attention to the offer of the units of the collective investment schemes in any jurisdiction in which such offer sale or solicitation of an offer to buy or the calling to attention to the offer thereon is restricted prohibited or not authorised.

The Materials have been prepared for the purpose of providing general information without taking account of any particular investor's objectives, financial situation or needs. An investor should, before making any investment decisions, consider the appropriateness of the information in the Materials, and seek professional advice, having regard to the investor's objectives, financial situation and needs. The Information is not intended to be accounting, tax legal, financial, regulatory or any other form of professional advice and should not be relied upon in that regard.

M&G Investments or its associates or directors do not guarantee the performance of any investment or any particular rate of return referred to in the Materials. M&G Investments does not warrant or represent that the information, statements, opinions or conclusions contained in the Materials are accurate, reliable, complete or current. Past performance is not an indicator of future performance.

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Audience

Public debt

Public debt investments offer a stable income both on their own and in combination with our other fixed income offerings.

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For further information about our investment opportunities in public debt.

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The following pages pertain to information on the M&G Funds and do not relate to M&G Investments. The following pages are accordingly for information only. This website is intended only for institutional investors in Singapore and authorised distributors of the M&G Funds. Specifically, the information on these pages should not be used or relied upon by any other investor from any jurisdiction.

Our expertise

We have over 40 years of experience in sourcing attractively priced public debt assets, including corporate and government bonds as well as alternative credit such as asset-backed securities.

Our government bond products have allowed investors to benefit from volatility in the conventional gilt and index-linked gilts markets, resulting in strong performances across our product range.

In the sterling and euro corporate markets, our managers invest across investment grade corporate bonds, high-yield bonds, asset-backed securities, covered bonds, supranational debt and agency debt.

Our fund managers are supported by what we believe to be one of the largest credit analyst teams in Europe, and a dedicated restructuring unit. These teams have assisted to deliver consistent performance which helped mitigate the effect of market conditions such as the global financial crisis of 2008 and the current European sovereign debt crisis. 

Past performance is not a guide to future performance.

Government bonds

We believe we are one of the UK’s largest investors in conventional and inflation-linked UK government bonds, holding US$45bn* and US$9bn* respectively.

Our highly experienced gilt fund management team uses fundamental research to identify attractively priced securities in these markets. Their value-based strategies work with all market conditions but are particularly effective during periods of heightened volatility. Since the height of the financial crisis of 2008, our pooled gilt strategies have delivered returns above their respective benchmarks.

*As at 30 June 2018.

Corporate bonds

We manage a range of segregated and pooled corporate bond products in euro or sterling for our institutional clients.

Our credit funds invest primarily in pan-European debt and across the ratings spectrum. We invest in:

  • High-yield and investment grade bonds
  • Asset-backed securities and covered bonds
  • Sovereign, supranational and agency debt

Asset-backed securities (ABS)

Asset-backed securities (ABS) are securities whose value and income payments come from, and are backed by, a specified pool of underlying assets. Similar to equities and corporate bonds, ABS can cover a wide range of underlying asset classes.

The case for European ABS

Since 2008, European ABS have consistently traded at higher spread levels than unsecured bank debt, while offering steady floating-rate returns and full security over a pool of identifiable and tangible assets.

This produces a market anomaly of being paid more to hold on to a more secure asset. This anomaly arises for a several reasons, but most importantly it stems from the non-standardisation of ABS bond structures. As a result, it requires significant expertise to thoroughly analyse ABS, and this limits the number of investors who can participate in the market.

UK and European ABS offer solid returns and have a very robust credit performance. Our ABS credit analysts have extensively modelled these bonds and believe that they can withstand a huge amount of microeconomic pain before the bonds suffer even a penny of credit losses.

Overall, we feel that ABS presents an attractive investment proposition with a strong performance track record and the flexibility to allow investors to tailor their portfolios to a specific risk or return appetite. They offer:

  • A premium over other similarly rated fixed income asset classes
  • Floating rate returns which protect against interest rate rises
  • Security against ring-fenced assets
  • A strong credit track record

Investor opportunities

The ability to tailor risk and return in ABS allows us to construct portfolios which can perform various roles in our investors’ asset allocation:

  • A low risk portfolio (AAA / AA rated) yielding Libor + 0.5% - 2.0% as an alternative to Gilt or Investment Grade corporate bond mandates
  • Or as medium risk portfolios (A / BBB) yielding Libor +3-5% dependent on risk appetite for a growth portfolio

Total return credit investing

Investing in a total return strategy allows investors to maintain a permanent allocation to fixed income, but by assigning asset allocation decision making to a portfolio manager, investors benefit from a swift and well researched response to changing and developing markets. Total Return portfolios are not managed against a reference benchmark and aim to deliver positive absolute returns.

Our approach to total return investing provides investors with access to M&G’s extensive public and private debt resources in a solution that combines:

  • Flexibility to invest across many debt asset classes
  • Flexibility to asset allocate between debt asset classes and sectors
  • Flexibility to invest across all ratings bands or through the debt part of the capital structure
  • Extensive management of interest rate risk

Our total return Multi-asset credit strategy has had strong positive returns since its inception in April 2007.

Cyveillance Protected

 
This advertisement has not been reviewed by the Monetary Authority of Singapore.
This website is intended only for Institutional Investors in Singapore.
Specifically, the information on these pages should not be used or relied upon by the public of Singapore or any other type of investor from any other jurisdiction.
The value of investments will fluctuate, which will cause fund prices to fall as well as rise and you may not get back the original amount you invested.