M&G to rename its High Interest fund

M&G Investments is to change the name of manager Ben Lord’s £339m M&G High Interest fund next month to reflect its new investment approach.

The fund will be renamed the M&G Short-Dated Corporate Bond fund on 9 November, in acknowledgement of a new investment approach that will enable Lord (pictured) to diversify away from investing in floating rate notes.

“Ben Lord will be able to invest in the full range of assets the fund’s investment policy currently allows, enabling the fund to achieve a greater level of diversification and removing the obligation to invest a large proportion of the portfolio in money market instruments such as floating rate notes,” a spokeswoman for the group said.

Floating rate notes accounted for 82.5% of the portfolio as of 31 August, with 10.9% in short-dated fixed rate bonds, and cash and deposits making up the remaining 6.6%.

Designed to provide stability of capital with a flow of income typically above that available from a UK building society deposit account, the fund has been managed by Lord since February 2009 and had a distribution yield of 1.08% as of 31 August.

The fund objective and overall risk profile will remain unaffected by the changes.

The product sits in the UK Investment Management Association Sterling Corporate Bond sector, alongside two of M&G’s flagship products, manager Richard Woolnough’s £6.6bn Corporate Bond fund and £5.7bn Strategic Corporate Bond fund.

 

This article was first published on Investment Week

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