M&G’s bond fund taps inflation fear


first_img Share by Taboolaby TaboolaSponsored LinksSponsored LinksPromoted LinksPromoted LinksYou May LikeTotal PastThe Ingenious Reason There Are No Mosquitoes At Disney WorldTotal PastMoneyPailShe Was A Star, Now She Works In ScottsdaleMoneyPailNoteabley25 Funny Notes Written By StrangersNoteableySerendipity TimesInside Coco Chanel’s Eerily Abandoned Mansion Frozen In TimeSerendipity TimesBetterBe20 Stunning Female AthletesBetterBemoneycougar.comThis Proves The Osmonds Weren’t So Innocentmoneycougar.comautooverload.comDeclassified Vietnam War Photos The Public Wasn’t Meant To Seeautooverload.comZen HeraldThe Truth About Why ’40s Actor John Wayne Didn’t Serve In WWII Has Come To LightZen HeraldCrowdy FanShe Didn’t Know Why Everyone Was Staring At Her Hilarious T-ShirtCrowdy Fan whatsapp KCS-content Monday 6 September 2010 8:17 pm Tags: NULL Show Comments ▼center_img M&G’s bond fund taps inflation fear whatsapp More From Our Partners Mark Eaton, former NBA All-Star, dead at 64nypost.comAstounding Fossil Discovery in California After Man Looks Closelygoodnewsnetwork.orgRussell Wilson, AOC among many voicing support for Naomi Osakacbsnews.comPolice Capture Elusive Tiger Poacher After 20 Years of Pursuing the Huntergoodnewsnetwork.orgFeds seized 18 devices from Rudy Giuliani and his employees in April raidnypost.comNative American Tribe Gets Back Sacred Island Taken 160 Years Agogoodnewsnetwork.orgUK teen died on school trip after teachers allegedly refused her pleasnypost.comBrave 7-Year-old Boy Swims an Hour to Rescue His Dad and Little Sistergoodnewsnetwork.orgA ProPublica investigation has caused outrage in the U.S. this weekvaluewalk.comSupermodel Anne Vyalitsyna claims income drop, pushes for child supportnypost.comBiden received funds from top Russia lobbyist before Nord Stream 2 giveawaynypost.comI blew off Adam Sandler 22 years ago — and it’s my biggest regretnypost.com980-foot skyscraper sways in China, prompting panic and evacuationsnypost.comFlorida woman allegedly crashes children’s birthday party, rapes teennypost.com‘Neighbor from hell’ faces new charges after scaring off home buyersnypost.comKiller drone ‘hunted down a human target’ without being told tonypost.comMatt Gaetz swindled by ‘malicious actors’ in $155K boat sale boondogglenypost.comInside Ashton Kutcher and Mila Kunis’ not-so-average farmhouse estatenypost.com Prudential’s fund management arm, M&G, is tapping into fears of resurgent inflation and appetite for bonds with an inflation-linked corporate bond fund, which it says is the first of its kind.M&G Investments said yesterday its UK Inflation Linked Corporate Bond Fund, aimed at the retail sector, will invest in fixed interest securities “that should perform well when inflation is high or rising.” The launch is scheduled for 16 September, it said in a statement.“Put simply, the new fund is the corporate bond equivalent of an index-linked gilt fund. It should protect the value of investors’ income and capital over the medium to long term,” said Jim Leaviss, head of M&G’s retail fixed interest team, which will run the fund with Ben Lord.The fund launch comes at a time of concern that quantitative easing, central banks’ purchase of government bonds to inject cash into global markets after the Lehman Brothers collapse, will trigger a bout of high inflation in the medium term.Inflation in the UK has exceeded the two per cent target consistently in the last four years, Leaviss said, but he still does not expect high inflation in the short term.“We think there is far too much unemployment, too much overcapacity (for inflation to rise),” he said adding the fund launch was a pre-emptive strike to cope with investor demand. “We are building the fire engines in case there is a fire,” he added.Investors have also shown appetite for fixed-income investments this summer. The global bond sector was the best-selling asset class in July, with net retail sales of £361m. last_img