M&G to launch global floating rate fund for Tomlins

M&G is to launch a global floating rate fund for James Tomlins next month, investing in high yield securities with low duration, in an effort to provide a fixed income solution to a rising interest rate environment.

The M&G Global Floating Rate High Yield fund will launch on 11 September, with Tomlins (pictured) taking the lead manager role. The fund is designed to play the increase in interest rates which is expected over the coming years. Traditional bond funds face a tough environment as the US Federal Reserve and the Bank of England start to raise interest rates from record lows. Current expectations are for interest rates in the UK to hit 3% by 2017. Tomlins said the challenge for bond investors is how to cope in this environment, having enjoyed a dovish cycle for many years. "One s...