M&G Global Floating Rate High Yield Fund

The fund aims to provide combined capital growth and income that is higher than that of the ICE BofAML Global Floating Rate High Yield Index (3% constrained) USD Hedged, net of the Ongoing Charge Figure, over any five-year period. At least 70% of the fund is invested in high yield floating rate notes (FRNs). These are bonds paying a variable coupon that is adjusted in line with changes in interest rates. These FRNs have a low credit rating, which typically pay higher levels of interest to compensate investors for the greater risk of default. The fund focuses on high yield FRNs issued by governments and companies from anywhere in the world, including emerging markets. Part of the fund may be invested in other fixed income assets, such as government bonds. Asset exposure is gained through physical holdings and the use of derivatives.