The latest news in investment offerings, financial products and other services relative to wealth advisors and their clients.

M&G Investments
M&G Investments has just launched the M&G (Lux) China Corporate Bond Fund, expanding M&G’s global fixed income offering to external clients. It will be classified as Article 8 under the EU’s Sustainable Finance Disclosure Regulation (SFDR).

It is structured as a sub-fund of a UCITS Luxembourg SICAV, and it will be available to institutional and wholesale investors in Europe, as well as professional investors across Asia, the firm said in a statement.

The fund provides investors with the opportunity to invest in China’s onshore corporate bond market – one of the world’s largest and fastest-growing credit markets – at a time when global investors are seeking diversification opportunities in fixed income.

Against a backdrop of shifting global interest rate cycles, the fund aims to generate a higher total return than the China corporate bond market over any three-year period, the firm continued. With China’s monetary policy diverging from major developed economies, the fund aims to capture relative value opportunities, combining capital growth and income, while expanding global investor access to China’s dynamic credit market.

It will be managed by Singapore-based William Xin, who has over two decades of experience in China’s credit market. He will be supported by M&G’s Asian fixed income team which is based in Singapore and manages almost $10 billion in assets across the region, as well as use the firm’s research capabilities and proprietary credit analysis across the UK, Europe, and the US.

“Investor demand for diversified fixed income exposure continues to grow, particularly in Asia and Europe,” Andrew Chorlton, chief investment officer of fixed income at M&G Investments, said. “This launch follows our significant investment in expanding M&G’s global credit platform, including build-out of our Asian fixed income expertise, to enhance our ability to provide clients with innovative solutions and access to leading fixed income markets.” 

“China’s corporate bond market is one of the most dynamic in the world and global investors are attracted to the diversification it offers, its relatively stable risk-return profile and its low correlation to other bond markets. As the market continues to internationalise, we expect this will further increase demand for Chinese Yuan-denominated assets over the long term,” Xin said.

With a heritage in global fixed income investing, M&G manages $173.3 billion in fixed income strategies worldwide, drawing on expertise across investment-grade, high-yield, and emerging market debt.