M&G launches a 5-year investment grade bond fund with a 5% target
14 SEPT, 2026
By Joanna Piwko from RankiaPro Europe
M&G Investments expands its range of fixed maturity funds with the launch of the M&G (Lux) Fixed Maturity Bond Fund IG 2031, a five-year fixed maturity bond strategy managed by Stefan Isaacs, co-head of Macro Credit at the firm.
The new strategy adds to the eight such launches that M&G has made in the last three years, with 1.9 billion euros raised, and is supported by a fixed income platform that manages more than 160 billion euros.
The fund is launched today, September 14, 2026, with a simulated gross return of the portfolio of approximately 5%, in a context of rebounding volatility in the European public debt markets.
Investment grade bonds with a buy and watch management
At least 60% of the portfolio will be invested in public and corporate debt with an investment grade rating, with the aim of maintaining an average BBB rating, while exposure to high yield bonds will be limited to 40%.
The fund is actively managed, without being linked to any benchmark index, with a buy and watch approach and continuous supervision of the default risk throughout its life.
The recent volatility in the public debt markets has reinforced the attractiveness of existing opportunities in Europe, where five-year returns continue to be at interesting levels and offer an attractive entry point for investors in the current eurozone environment. The strategy seeks to take advantage of this market opportunity to offer a more predictable income profile, combining a predominantly public debt-oriented allocation with selective exposure to credit and disciplined credit risk management.
Stefan Isaacs, co-head of Macro Credit, M&G Investments
The announcement comes months after M&G launched the M&G (Lux) Fixed Maturity Bond Fund High Yield 2031, focused on high-yield corporate debt with the same maturity horizon in 2031.
A team with over 40 years of combined experience
The strategy is managed by Stefan Isaacs along with Matthew Russell, who has been managing the M&G (Lux) Short Dated Corporate Bond Fund since 2018, and managers Carlo Putti and Anjulie Rusius.
Together, the team brings more than 40 years of experience in fixed income, bond portfolio management and credit selection, backed by a platform with over 280 professionals in public and private market investment.
Access to European fixed income for the Spanish investor
For Spanish investors, the new strategy offers access to M&G's experience in European credit through a euro-denominated solution, as explained by Alicia García, head of M&G Investments for Spain, Portugal and Andorra.
For Spanish investors, this strategy offers access to M&G's experience in European credit through a euro-denominated fixed income solution that provides greater visibility on potential profitability.
Alicia García, head of M&G Investments for Spain, Portugal and Andorra, M&G Investments
