For explanations of the investment terms used throughout this page.

The M&G Absolute Return Bond Fund is the latest proposition from one of Europes largest asset managers, designed with risk-averse investors in mind.

Deliver steady positive returns for investors specifically targeting total returns (combined income and capital growth) of the cash rate* plus 2.5% a year over any three-year period

Minimise the degree to which the funds value fluctuates over time

Limit monthly losses across all market conditions

While the fund aims to achieve its objectives in any market condition, there is no guarantee that it will achieve a positive return over three years, or any other period. Investors may not get back the original amount they invested.

*The cash rate is based on the three-month GBP LIBOR (London Interbank Borrowing Rate), the rate at which banks borrow money from each other (in UK pounds) for a three-month period.

Download the guide to targeting absolute returns

Download the M&G Absolute Return Bond Fund brochure

Find out more about the M&G Absolute Return Bond Fund

Jim Leavissjoined M&G in 1997 and is Head of the Retail Fixed Interest team.

He also manages the M&G Global Macro Bond Fund and the M&G European Inflation Linked Corporate Bond Fund.

Wolfgang Bauerjoined M&G in 2012 and the Retail Fixed Interest team in 2014.

He is also deputy fund manager of the M&G Global Corporate Bond Fund and the M&G European Corporate Bond Fund.

The fund draws on the collective experience and expertise of M&Gs Retail Fixed Interest team, which has demonstrated its ability to successfully navigate challenging market conditions recently during the global financial crisis and the eurozone debt crisis.

The managers of the M&G Absolute Return Bond Fund can invest across global bond markets including but not limited to the following types of assets:

As well as holding assets such as corporate bonds that stand to perform well in strong economic conditions, the fund will own other types of assets expected to hold up well when markets are falling, such as government bonds or certain currencies.

The fund managers are also able to use derivatives to limit the impact of falling asset values on the portfolio. Derivatives are financial instruments whose value is linked to the expected future price movements of an underlying asset.

The fund may take short positions through the use of derivatives. Short positions allow the fund to profit from a fall in the value of an asset (for example, a companys bond). However, if the assets value increases, the short position will cause the fund to incur a loss.

The fund may use derivatives to gain exposure to investments exceeding the value of the fund (leverage). This may cause greater changes in the funds price and increase the risk of loss.

Absolute return funds are typically suited for investors who are willing to sacrifice some potential upside, in the form of investment returns, in favour of limited potential downside, in the form of investment losses.

Absolute return investing might not be a suitable strategy for investors looking to achieve consistently positive returns over shorter timeframes. It is possible that returns may not be positive and you may not get the back the original amount you invest.

Please note, we are unable to give financial advice. If you are unsure about the suitability of your investment, speak to your financial adviser.

Download the guide to targeting absolute returns

Download the M&G Absolute Return Bond Fund brochure

Find out more about the M&G Absolute Return Bond Fund

The fund allows for the extensive use of derivatives.

The fund may invest more than 35% in securities issued by any one or more of the governments listed in the fund prospectus. Such exposure may be combined with the use of derivatives in pursuit of the fund objective. It is currently envisaged that the funds exposure to such securities may exceed 35% in the governments of Germany, Japan, UK, USA although these may vary subject only to those listed in the prospectus.

The suitability of any investment will always depend on your circumstances and attitude towards risk and return. If youre at all unsure, please speak to a financial adviser.

When youre deciding how to invest, its important to remember that the value of investments goes up and down. So how much your investments are worth will change over time, and you may not get back the amount you originally invested.

The value of the funds assets will go down as well as up. This will cause the value of your investment to fall as well as rise and you may get back less than you originally invested.