M&G is to launch a Global Corporate Bond fund next week, managed by Ben Lord.
The fund will invest in fixed income securities around the world.
It follows M&G’s move last July to limit flows to a number of its fixed income portfolios, including Richard Woolnough’s £5.6bn M&G Corporate Bond fund and the £5.3bn M&G Strategic Corporate Bond funds – which Ben Lord works on as deputy manager.
Working across a range of fixed income products, Lord is also lead manager of the £380m M&G Short Dated Corporate Bond fund.
Lift Financial group technical director Joel Adams is cautious about fixed income launches in this economic climate, pointing to Bank of England governor Mark Carney’s forward guidance which stated that base rate would remain at 0.5 per cent until unemployment levels fell below 7 per cent.
Adams says: “It is a very brave move for any fund management firm to launch a fixed income product with these current market conditions. We are very cautious on allocating significant amounts of money to the fixed income sector.
“Interest rates cannot get any lower than they are and most people are expecting fixed income to perform poorly. However, M&G has a fantastic track record [in fixed income] so if anyone can handle it they can.”