London-headquartered asset manager M&G has registered the two new absolute return retail strategies it has launched in December 2016 into a Luxembourg-domiciled Sicav.
The M&G (Lux) Global Target Return Fund and the M&G (Lux) Absolute Return Bond Fund are Ucits-compliant and sub-funds of the M&G Lux Investment Funds 1 Sicav.
This comes after the company’s application for the launch of a new retail Sicav in Luxembourg for investors outside the UK in October 2016.
At that time, M&G’s Group finance director Grant Speirs said: “A Luxembourg retail Sicav platform will enable us to offer fund strategies to European retail investors if the UK loses financial services passporting rights in several years’ time as a result of its exit from the EU.”
If information has not been disclosed yet on the Luxembourg-domiciled version of the strategy, its UK counterpart seeks to achieve income and capital growth of at least three-month GBP LIBOR plus 4% a year over any three-year period.
The fund manager adopts a flexible approach to the allocation of capital between asset classes adressing changes in economic conditions and the valuation of assets, guided by a valuation framework.
Tristan Hanson is the lead manager of the M&G Global Target Return Fund alongside deputy managers Craig Simpson and Eric Lonergan.
M&G’s head of Retail Fixed Interest Jim Leaviss and portfolio manager Wolfgang Bauer co-manage the M&G Absolute Return Bond Fund, supported by investment specialist Pierre Chartres.
The UK version of the strategy targets a combined income and capital growth of at least three-month GBP LIBOR plus 2.5% a year over any three year period.
The fund managers apply a flexible approach, investing across a broad range of fixed income and currency markets according to where they identify value.
As of 30 June 2016, M&G managed €307.3bn in assets.