M&G Corporate Bond Fund Sterling I Acc

A Select 50 Fund - Fidelity insight

Category GBP Corporate Bond

This fund can be held in an Investment ISA, SIPP and Investment Account

Last buy/sell price

79.02p

arrow-down-0.03p (-0.04%)

Fund Code

MGCPA

B1YBRL5

GB00B1YBRL59

Prices updated as at 14 Nov 2024

Prices in GBX

Investment objective

The Fund aims to provide a higher total return (the combination of capital growth and income), net of the Ongoing Charge Figure, than the average return of the iBoxx Sterling Corporates GBP Index over any five-year period. At least 70% of the Fund is invested, directly or indirectly through derivatives, in investment grade corporate debt securities including investment grade Asset-Backed Securities. These securities can be issued by companies from anywhere in the world, including Emerging Markets. These securities are denominated in Sterling or hedged back to Sterling.

Important documents: Please ensure that you have read the Key Information Document/Technical Guide , Pre-sale Illustrations document & Doing Business with Fidelity document (incorporating the Fidelity Client Terms) and the fund information documents. These can be found within the Charges & documents section.

Our view

Why we like the fund: The fund mostly lends money to lower risk companies (a maximum of 30% of the fund can be allocated to higher risk companies). Although it invests globally, the managers will remove any foreign currency risk by ensuring that they either lend in sterling or hedge any foreign currency loans to sterling. The manager is experienced and supported by a strong team of analysts assessing the creditworthiness of borrowers. Its approach to lending is also very clear - a 'value' investor aiming to lend when the interest return is attractive relative to the risks undertaken. How to use this fund: This fund can be a helpful addition to many portfolios, including those that seek a low-risk investment. It offers a reasonable increase in interest above the prevailing cash rate. The fund may be affected by any changes to interest rates and, if they rise, this fund may lose value.

Important Information

Please note the value of investments can go down as well as up so you may get back less than you invested. This information is not a personal recommendation for any particular investment. If you are unsure about the suitability of an investment you should speak to an authorised financial adviser. The information contained herein: (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.

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