The flexible, go-anywhere strategy of M&G Global Macro Bond means it continues to rank as a decent core diversifier. It currently yields 1.5% and pays dividends quarterly. Jim Leaviss has run this fund in its various iterations since its inception in 1999. He can invest in any type of fixed interest security in the world. His focus in recent years has been on highly rated bonds.

Leaviss uses his flexibility to take advantage of different economic conditions and global trends, including interest rate movements and inflation. His assessment of these macroeconomic factors determines the asset classes in which the fund invests, and influences the portfolio’s mix of interest rate risk, credit risk and currency exposure.

This approach means Leaviss can constantly reassess value from among the whole range of different bond types, from ‘safe haven’ government bonds to riskier corporate and emerging market bonds.

Leaviss actively manages the types of bond in the fund and their maturities, and by using derivatives believes he can ensure the fund is able to perform in all types of market conditions. He can also invest in any currency, offering further diversification benefits.

October 2020