A BOND FUND 30 NOVEMBER 2016 01 M&G GILT & FIXED INTEREST INCOME. FUND FACTS Product(s) OEIC/NISA Launch date 9 December 1980 Class launch date 3 August 2012 Fund size 661.7 million Number of holdings 27 Initial charge 0.00% Annual Management Charge (AMC) 0.50% Ongoing Charge 0.66% Performance fee No Distribution yield (net of charges, gross of tax) 0.63% USING THIS FUND FACTSHEET When you invest in a unit trust, OEIC or NISA, your money buys units or shares in one or more funds. These funds pool together money from other investors and a fund manager uses this money to invest in a number of different investments. This Fund Factsheet gives you detailed information about a particular fund to help you decide if it s right for you. It s important that you read this together with the available product documentation before you apply. If you're not sure what a word in the Fund Factsheet means, please turn to the glossary on page 5. FUND MANAGEMENT COMPANY This is basic background information about the company whose fund manager selects the investments that make up the fund. FUND MANAGER The fund manager is professionally qualified to manage funds. It's their job to seek out the best investment opportunities, based on the fund's aim. They often have access to a team of experts to help them decide where to invest. M&G INVESTMENTS M&G were established in 1931 and firmly believe in offering customers straightforward products, together with clear and balanced information, to help them make the right investment decisions for their needs. Today, M&G are one of the largest active investors in the UK and remain at the forefront of investment thinking, constantly seeking to develop their funds and product range to provide the best investment opportunities. M&G's fund managers focus on companies rather than share prices, and understanding the companies they invest in is a core principle across both equities and fixed interest. M&G funds are underpinned by in-depth knowledge and a dedication to careful and responsible long-term growth. MATTHEW RUSSELL Matthew Russell joined M&G in 2007 and was appointed fund manager of the M&G Short Dated Corporate Bond Fund in September 2013, having served as deputy fund manager since 2011. Matthew joined M&G as a fund managers assistant covering the retail fixed interest fund range. He has a BSc in economics from the University of Birmingham and is also a CFA charterholder. FUND OBJECTIVE This is a general description of what the fund aims to achieve, as stated by the fund management company. For a detailed description of what the fund invests in, please see the fund characteristics on page 2. IA SECTOR This is the IA sector the fund falls into. IA sectors are defined by The Investment Association (IA). The sectors are a way of grouping funds with similar characteristics, so they're easier to compare. The Fund aims to provide a secure income with stability of capital consistent with investment in gilts. IA UK GILT Funds which invest at least 95% of their assets in Sterling denominated (or hedged back to Sterling) triple AAA rated, government backed securities, with at least 80% invested in UK government securities (Gilts). EVERY DAY MATTERS.
M&G GILT & FIXED INTEREST INCOME 30 NOVEMBER 2016 02 FUND CHARACTERISTICS This fund is overseen by an experienced fund manager who makes informed decisions on where to invest your money. The fund manager constantly monitors companies, economic conditions and markets to select and change a portfolio of investments that offers the best opportunities to meet the fund s aim. The fund generally invests in the following: Bonds. To provide the potential for overall returns the fund invests in bonds, also known as fixed interest securities. This is achieved by receiving regular interest on loans to companies or governments. There is a chance the bond issuer could fall into financial difficulty and will not be able to pay the interest or the loan back, which could result in a fall in your investment returns. Bonds can also be sensitive to trends in interest rate movements and if interest rates go up, the returns on your investment are likely to fall as bonds can become less attractive. On the other hand, if interest rates fall, bonds are likely to become more attractive and your investment returns increase. FUND PERFORMANCE AS AT 30 NOVEMBER 2016 The graph opposite shows how the fund has performed over the last five years (or since the fund launched) compared with the fund's IA sector average. The first table shows the total percentage change, over one, three and five years. The second table shows performance for 12-month periods over the last five years, to the end of the last quarter. NOTES: Please bear in mind that past performance is not a guide to future returns. The value of your investment and any income taken from it is not guaranteed and may go up and down. You could get back less than you invest. The performance provided for the fund is: Also: Is after all fund charges have been taken, excluding the initial charge, and assumes all income generated by the investments, after deduction of tax, remains in the fund. The sector values are based on the selling price of units or shares published by all the funds in that IA sector. Fund IA sector: IA UK Gilt 1 year 3 years 5 years Fund 6.90 20.03 17.80 IA sector 7.83 22.97 20.24 ANNUAL FUND PERFORMANCE TO LAST QUARTER (%) 12 months to 30 Sep 12 30 Sep 13 30 Sep 14 30 Sep 15 30 Sep 16 Fund - -2.90 3.68 7.68 13.76 IA sector 8.03-4.23 5.25 8.00 15.51 Performance data source: Lipper. I distribution unit class. FUND IDENTIFIERS These are unique codes used to identify a fund. You may find these codes useful if you intend to use financial websites to look up this fund. ISIN code SEDOL code GB00B734BY83 GB00B7454D07 B734BY8 B7454D0 MEX code MGJAAC MGJAAD ASSET ALLOCATION AND ALL BELOW INFORMATION AS AT 30 NOVEMBER 2016 An overview of the types of investments currently held by the fund. UK gilts 84.52% International bonds 9.98% UK corporate bonds 4.89% Money Market 0.57% Cash and equivalents 0.04%
M&G GILT & FIXED INTEREST INCOME 30 NOVEMBER 2016 03 REGIONS BREAKDOWN Where in the world the fund currently invests. UK 89.41% Developed Europe - excl UK 5.57% North America 4.41% Unclassified - Cash and Equivalents 0.61% COUNTRY BREAKDOWN The countries in which the fund currently invests. United Kingdom 89.40% United States 4.41% Luxembourg 2.64% Finland 1.10% Germany 1.08% Norway 0.76% Unclassified - Cash and Equivalents 0.61% BONDS SECTOR BREAKDOWN The type of industries and services the fund currently invests. Government 91.56% Investment grade corporate bonds 3.49% Non-classified 4.91% Cash and equivalents 0.04% CURRENCY BREAKDOWN The currencies in which the fund's investments are priced. Pound Sterling 94.97% US Dollar 4.41% Non-debt 0.58% Cash 0.04% This is the currency breakdown before allowing for any hedging the fund may use, please see important information. MATURITY BREAKDOWN The length of time until the bonds in the fund are due to be repaid. Generally, the longer till the repayment date, the more sensitive the prices of the bonds are to any changes in interest rates. < 5YR MATURITY 30.81% 5YR - 10YR MATURITY 9.70% 10YR - 15YR MATURITY 15.71% > 15YR MATURITY 43.16% CASH AND EQUIVALENTS 0.04% UNKNOWN 0.58% CREDIT RATINGS (SOURCE: BLOOMBERG) The financial strength of the bonds the fund currently invests in. The higher the rating the more likely the bond issuer is to repay the interest or loan. The ratings range from AAA, the highest grade, to C, the lowest grade. AAA 8.88% AA 90.05% NOT RATED 0.45% CASH AND EQUIVALENTS 0.04% NON BOND INVESTMENTS 0.58%
M&G GILT & FIXED INTEREST INCOME 30 NOVEMBER 2016 04 TOP 10 HOLDINGS The highest valued single holdings in the fund. Holding Sector % 6% Treasury Stock 2028 Financial Services 11.26% 4 1/2 Treasury 2034 Bonds 11.00% 1¾% Treasury Gilt 2019 Bonds 9.36% 5% Treasury Stock 2025 Bonds 9.25% 4¾% Treasury Stock 2038 Bonds 6.58% 4¼% Treasury Gilt 2039 Bonds 5.91% 1% Treasury Gilt 2017 Bonds 5.63% 3¼% Treasury Gilt 2044 Bonds 4.86% 4¼% Treasury Gilt 2027 Bonds 4.44% TSY INFL IX N/B Bonds 4.41% Percentage of fund in top 10 72.70%
M&G GILT & FIXED INTEREST INCOME 30 NOVEMBER 2016 05 GLOSSARY Explanations of some of the words used in this Fund Factsheet. Annual Management Charge This is the charge that covers the costs of managing the fund and is taken out as a percentage of the fund's value. Cash and equivalents Some funds keep part of your money in cash to add flexibility and aid stability. This includes bank deposits and other investments that can be easily converted into cash. Distribution yield Fund characteristics The Distribution Yield reflects the amounts that may be expected to be distributed over the next twelve months as a percentage of the mid-market unit price of the fund as at the date shown. It is based on a snapshot of the portfolio on that day and is not a guarantee of future returns. It does not include any initial charges and investors may be subject to tax on their distributions.in January 2015, the basis for calculating the yield changed to better reflect the anticipated income over a 12 month period. The value of an investment and any income taken from it is not guaranteed and may go up and down. Specific characteristics unique to the type of investments this fund may hold, which may affect your investment return. Fund size The total value of all investments held in the fund. Initial charge The initial charge is a percentage you'll pay each time you make an investment in certain funds or unit classes. Launch date The date the fund opened for new business. Lipper Ongoing Charge Performance fee A Thomson Reuters company that supplies fund information, analytical tools, and commentary. We use Lipper to provide past performance data on our fund factsheets. Shows the European Union standard disclosure of annual costs of a unit trust or OEIC, which includes the Annual Management Charge and any additional costs for managing the fund. A performance fee is charged to a fund if it performs better than a pre-agreed target. If it applies, your adviser can give you more information or further details are available on request. WHAT TO DO NEXT If you have any questions on this fund, please speak with a financial adviser. Remember you should read the available product documentation before you apply. IMPORTANT INFORMATION Source: The portfolio details have been supplied by the fund management company and are assumed to be correct by Legal & General. All other data sourced from Legal & General Group PLC unless otherwise stated. Legal & General (Unit Trust Managers) Limited. Registered in England and Wales No.1009418. Registered office: One Coleman Street, London EC2R 5AA. Authorised and regulated by the Financial Conduct Authority. We are members of The Investment Association. www.legalandgeneral.com Factsheet produced by FundsLibrary.