London-based asset manager M&G has launched an investment grade asset-backed securities fund, offering daily liquidity to investors.
Launched with €200m of external client capital from pension schemes and family offices, the fund will target opportunities across global securitised markets, investing in high quality, defensive instruments backed by assets such as residential mortgages, consumer, corporate and automotive loans.
It will follow the same long-term, value-based investment strategy as M&G’s £3.5 billion of existing ABS strategies.
Matthew Wardle, Head of Investment Grade Structured Credit at M&G and fund manager, said: “The investment case for the asset class is compelling for its exposure to granular and defensive underlying assets, low correlation with other asset classes and attractive value compared to corporate and government bonds.
“ABS performance has remained robust during recent years against a backdrop of higher interest rates, increased inflation and costs pressures for consumers and corporates alike. Falling inflation, expectations of continued low unemployment and healthy wage growth can continue to support a strong fundamental track record for the asset class looking forward.”
The Luxembourg-domiciled Sicav fund is classified Article 8 under SFDR.
