It has written to unitholders and advisers, saying it wants to make the changes to give fund managers greater flexibility in running their portfolios.
M&G is one of the leaders in the bond market. It has several top-quartile funds in its range, including the corporate bond and strategic corporate bond funds, both run by Richard Woolnough, which are among the best performers in the Investment Management Association’s UK corporate bond sector over three years.
A spokesman says: “This will allow the use of instruments, such as derivatives, to manage the fund portfolios even more efficiently and implement investment views and positions swifter and with great conviction.”
The wider powers will aff- ect nine of the funds within the range, with the firm alr- eady operating Ucits III through its optimal income fund, which launched in December 2006 under the management of Woolnough. The 213m fund is second in the IMA UK other bond sector over the last 12 months.
The change is set to take place on September 1.