M&G Expands UK Fixed Income Lineup with Two New Active ETFs

Asset manager M&G has broadened its exchange-traded fund (ETF) range with two new UK government bond funds.

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Joseph Pinto, Chief Executive of M&G Investments

The M&G UK Gilts Active UCITS ETF and the M&G UK Index-Linked Gilts Active UCITS ETF began trading on the London Stock Exchange on December 9, 2025 .

The launches provide investors with actively managed, income-focused options for core UK sovereign debt exposure. They represent a strategic expansion of M&G’s fixed income capabilities within the ETF structure.

The New ETFs: Objectives and Strategy

The two funds share a core mandate but differ in their specific bond targets and inflation protection features.

M&G UK Gilts Active UCITS ETF

• ISIN: IE000PTM74B6

• Objective: The fund is actively managed with the goal of outperforming the broader UK government bond market, net of fees, over time. Its benchmark is the iBoxx £ Gilt Index.

• Portfolio: It invests at least 90% of its assets in UK government bonds (gilts), which can include fixed-rate, floating-rate, or index-linked securities. The remaining up to 10% can be held in other funds or cash.

• Active Approach: The manager has discretion to deviate significantly from the benchmark, aiming to add value by identifying and exploiting pricing inefficiencies across the gilt curve.

M&G UK Index-Linked Gilts Active UCITS ETF

• ISIN: IE000KEV0H41

• Objective: This fund specifically aims to deliver a combination of capital growth and income above the return of the UK index-linked gilt market over a five-year period. Its performance is measured against the iBoxx UK Gilt Inflation-Linked Index.

• Portfolio: It maintains a minimum 70% allocation to index-linked gilts, with at least 90% overall in UK government bonds. Index-linked gilts adjust their coupon and principal payments based on the UK Retail Price Index (RPI), providing a direct hedge against inflation.

• Active Approach: Like its counterpart, this ETF employs a flexible, active strategy to seek securities it believes are mispriced, with no obligation to replicate its benchmark index.

Summary of Fund Details

The table below outlines the key features of the two newly launched ETFs.

The introduction of these two active ETFs gives fixed income investors new tools for accessing the UK government bond market. The choice between them will largely depend on an investor’s specific view on inflation and their desire for active management within a traditionally benchmark-driven asset class.

Source: ETFWorld.co.uk