M&G Investments, a UK-based investment manager, is set to launch a new global floating rate fund for retail investors in the UK, effective September 2014.

Dubbed as M&G Global Floating Rate High Yield Fund, the new fund will invest primarily in the $43.9 billion global high yield floating rate note (FRN) market and aims to offer investors protection during a period of rising rates globally.

The floating rate high yield fund will be managed by fund manager James Tomlins, who joined M&G in 2011.

The fund will invest in floating rate high yield bonds on a global basis, focusing primarily on the US and European markets.

It will invest in FRN issuers with below-investment grade credit ratings. This will see investors receiving a higher level of income to compensate for the higher risk associated with below-investment grade credit.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

The FRN instruments, which are issued by a diverse group of companies across the US, Europe and emerging markets, are designed to act as a natural hedge against rising interest rates and pay a variable income which resets every three months.

Tomlins said: "We believe that this is the first time that retail investors in the UK and Europe will have access to the high yield floating rate note market through a collective fund. For bond investors concerned about the risk of an increase in interest rates, this fund offers a means not only to protect their savings but also to gain from rising yields."