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ii Super 60 - M&G Emerging Markets Bond

ii Super 60 investments:
M&G Emerging Markets Bond

Asset Group Asset Sub-Group Investment Category
Fixed Income Global bonds Adventurous

Selection rationale:
Claudia Calich, manager of the M&G Emerging Markets Bond fund since 2013, believes that choosing the right mix between government and corporate issues in local and ‘hard’ currency (that is, foreign currency such as US dollars), together with careful country and security selection, are key factors in seeking to maximise returns.

With this fund, Calich and her deputy Charles De Quinsonas can take a flexible approach and allocate the portfolio in an unrestricted way between the four main emerging market bond sub-asset classes – government debt denominated in both local and hard currency, and corporate bonds issued in both local and hard currency.

The fund’s investment process blends high conviction views on macroeconomic factors with in-depth analysis of the bond issuer’s creditworthiness. Calich’s macroeconomic assessment begins with the global economic and market outlook, as well as the overall risk profile of the different economies.

She and her team then evaluate emerging market government and corporate bond issues to find the most attractive investment opportunities. Liquidity, solvency, balance of payments and political factors are among key considerations for the former; while their company analysis includes ownership structure, business risk and financial risk.

Calich says the freedom to invest in emerging market corporate as well as government bonds provides far more opportunities for the fund, when compared with funds restricted to the much smaller number of emerging market government issuers.

She points out that there has been rapid growth in emerging market corporate bonds issued over the past decade, which now offer widely diversified investment choices across geographies and industry sectors.

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The information we provide in the Super 60 investments list is an opinion provided by ii or one of its partners on whether to buy a specific investment. None of the opinions provided are a “personal recommendation”, therefore you should ensure that any investment decisions you make are suitable for your personal circumstances. Past performance of the underlying constituents is not a guarantee of future performance. Remember, the value of investments, and any income from them, can fall as well as rise so you could get back less than you invest.

Risk warnings

Past performance of the underlying constituents is not a guarantee of future performance. The value of investments, and any income from them, can fall as well as rise so you could get back less than you invest. 

Annual performance can be found on the factsheet of each fund, trust or ETF. Simply click on the asset’s name and then the performance tab. 

The information we provide in the ii Super 60 investments list is an opinion provided by ii or one of its partners on whether to buy a specific investment. Please note that none of the opinions we provide are a “personal recommendation”, which means that we have not assessed your investing knowledge and experience, your financial situation or your investment objectives. Therefore you should ensure that any investment decisions you make are suitable for your personal circumstances.

If you are unsure about the suitability of a particular investment or think that you need a personal recommendation, you should speak to a suitably qualified financial advisor. 

Any changes to the ii Super 60 investments list and the rationale behind those decisions will be communicated through the Quarterly Investment Outlook.

Details of all recommendations issued by ii during the previous 12 month period can be found here.

ii adheres to a strict code of conduct. Members of ii staff may hold shares in companies mentioned in the ii Super 60 investments list, which could create a conflict of interest. Any member of staff intending to complete some research about any financial instrument in which they have an interest are required to disclose such interest to ii. We will at all times consider whether such interest impairs the objectivity of the recommendation.

In addition, staff involved in the production of this ii Super 60 list are subject to a personal account dealing restriction. This prevents them from placing a transaction in the specified instrument(s) for five working days before and after an investment is included or amended and made public within the list. This is to avoid personal interests conflicting with the interests of the recipients of this ii Super 60 investments list.