The UK version of the fund launched with £164m of external investment, adding to the firm’s £123bn fixed income business.
Ben Lord and Mario Eisenegger will be the managers of the strategy, supported by a team of credit analysts across the UK, Asia, Europe and the US.
According to the firm, fixed income allocations are “back in favour” and are offering “exciting” yield opportunities, compared to other asset classes experiencing volatility due to high interest rates and inflation.
M&G backs bitcoin derivatives exchange with £20m investment
Jim Leaviss, CIO of fixed income, said: “In our view, we could see big opportunities for bond investors in 2024. With a wall of cash waiting to re-enter the market after last year’s high interest rates and continued inflation concerns sparking further interest rate reductions, a boom in the US bond markets looks likely.
“If the Federal Reserve cuts rates as early as March, this could trigger falling bond yields and lock in significant gains for early investors.”
Alex Matcham, head of UK wholesale, added: “Global market dynamics have put fixed income allocations back on the table for UK wealth managers who are increasingly looking to diversify away from the UK bond markets.
“After more than ten years of strong performance for our European clients, we are pleased to bring this fund to the UK market.”
Read the full article here