Rising inflation and tighter monetary policies have pushed yields upwards, making fixed income investing attractive again, the firm said in a statement. This has also been highlighted by other investment managers. See here. As the tightening cycle seems to be approaching its end, the M&G (Lux) Fixed Maturity Bond 2 fund aims to lock in attractive annualised yields between 4.6 per cent and 4.8 per cent over an 18-month period, based on current market conditions estimation.

The fund will invest mainly in euro denominated investment grade bonds, accessing opportunities across credit markets globally, the firm continued. To enhance the return potential, the fund will invest in high yield bonds, whilst maintaining an investment grade average rating at fund level.

The new strategy will be co-managed by a team with credit experience: Stefan Isaacs, deputy CIO of M&G’s Public Fixed Income, and Matthew Russell, who have been managing the M&G (Lux) Short Dated Corporate Bond Fund strategy since 2018, the firm said. Fund managers will be supported by M&G’s in-house research team to exploit price inefficiencies and identify the most rewarding opportunities with a buy and hold approach.  

“Fixed income is in vogue right now with meaningful yields on offer for the first time in a decade. The inversion of the yield curve means investors can get most of the yield available in corporate bonds without having to stretch to long maturities,” Isaacs said. “This 18-month short maturity strategy can offer an opportunity to lock in compelling positive yield levels available now with relative low risk and high visibility on returns.”

The fund, which comes under article 8 of the EU’s Sustainable Financial Disclosure Regulation, will be available for subscription from 25 September until 3 November 2023.

Monument
, the UK “neo-bank” serving mostly affluent clients, has launched new “notice accounts.”

The offerings provide a balance between “competitive returns and the ability to access their funds without long-term commitments,” the bank said in a statement. The initial release, which will be available with a notice period of seven, 35 and 60 days, will pay a variable interest rate.

The accounts are available via Monument’s app.

Depositors must hold a minimum balance of £25,000 with Monument across all savings accounts they have at any time. Eligible savings are protected up to £85,000 by the FSCS.

This news service recently interviewed Monument to find out how this digital financial institution aims to compete with other, more traditional bank models. The rise of lenders and saving institutions such as this firm reflects the continued overlap of tech and finance.

Earlier this year, the bank launched its Monument Lifestyle proposition, offering more than 35 services designed to save busy professionals, entrepreneurs and their families’ time.