M&G Emerging Markets Bond GBP I Acc

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Trading AccountISAJISASIPP

Fund Info

  • Yield History5.45%
  • 3 Year sharpe0.32
  • 3 Year alpha-0.44
  • Distribution Typeaccumulation
  • BenchmarkJPM GBI-EM Global Diversified TR USD
  • Legal StructureOpen Ended Investment Company
  • Fund Size (month end)Open Ended Investment Company
  • OCF0.75%
  • IA SectorGlobal Emerging Markets Bond
  • Manager GroupM&G
  • DomicileUnited Kingdom
  • ISINGB00B7GNKY53

Investment Strategy

The Fund aims to provide a higher total return (the combination of capital growth and income),net of the Ongoing Charge Figure, than that of a composite index over any five-year period. The composite index is made up of one third JPM EMBI Global Diversified Index, one third JPM CEMBI Broad Diversified Index and one third JPM GBI-EM Global Diversified Index. At least 80% of the Fund is invested, directly or indirectly through derivatives, in Emerging Market debt securities. These securities can be issued or guaranteed by Emerging Market governments and their agencies, public authorities, quasi-sovereigns, supranational bodies and companies that are incorporated, domiciled, listed or do most of their business in Emerging Markets. These securities can be denominated in any currency, including emerging market currencies.

ii Super 60 selected

This Fund is a member of our ii Super 60 rated list

Claudia Calich has been managing the M&G Emerging Markets Bond fund since 2013. She believes that choosing the right mix between government and corporate issues in local and hard currency, together with careful country and security selection, are key factors in seeking to maximise returns. With this fund, which currently yields around 5.5% and pays income half-yearly, Calich and her deputy, Charles De Quinsonas, can take a flexible approach. This means they can allocate the portfolio in an unrestricted way between the four main emerging market bond sub-asset classes – government debt and corporate bonds issued in both local and hard currency. 

Calich’s macroeconomic assessment begins with the global economic and market outlook, as well as the overall risk profile of the different economies. Liquidity, solvency, balance of payments and political factors are among the key considerations for emerging market government bonds, while their company analysis includes ownership structure, business risk and financial risk.

Calich’s investment thesis favors the freedom to invest in emerging market corporate as well as government bonds, which should provide greater opportunities compared with funds restricted to the much smaller number of emerging market government issuers.

October 2020

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