M&G Emerging Markets Bond Fund Sterling I Acc

Global Bonds

Rated Fund 2016-20. Offers a mix of government and corporate bond exposure      

M&G Emerging Markets Bond is the undisputed leader in the emerging market bond world. It won its inaugural Money Observer award in 2019, as runner-up in the global bonds category. Claudia Calich, its manager since 2013, believes that choosing the right mix of government and corporate issues in local and hard currency, plus careful country and security selection, are key factors in maximising returns. 

With this fund, which currently yields 6.3% and pays income half-yearly, 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 and corporate bonds issued in both local and hard currency.

Calich’s macroeconomic assessment begins with the global economic and market outlook, and the overall risk profile of different economies. Liquidity, solvency, balance of payment and political factors are among the managers’ key considerations when choosing emerging market government bonds. Corporate bond analysis focuses on ownership, business risk and financial risk.

Calich says the freedom to invest in emerging market corporate as well as government bonds means far more choice than is available to funds restricted to government issuers alone. She says 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. At the end of 2019 almost a third of the fund was in corporate bonds.

Narrative and ratings content all as of 01 January 2020.

See all Money Observer rated funds
Name
M&G Emerging Markets Bond Fund Sterling I Acc
Manager
M&G Securities Ltd
Type
Open Ended Investment Company
ISIN
GB00B7GNKY53
Sector
Global Emerging Markets Bond
Launched
19/04/2012
OCF
0.75 %
Risk Rating
3
3 Year Sharpe
0.43
3 Year Alpha
0.02
Yield
5.3 %
Benchmark
JPM GBI-EM Global Diversified TR USD
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.
Holding %
Northern Trust Global US Dollar D 9.57 %
Secretaria Tesouro Nacional 10% 2.97 %
Russian Federation 8.15% 2.70 %
Republic of Singapore 1.25% 2.10 %
Mexico (United Mexican States) 8.5% 2.01 %
Malaysia (Government Of) 3.88% 1.87 %
The Republic of Peru 8.2% 1.58 %
Albania(Republic Of) 3.5% 1.45 %
Indonesia (Republic of) 8.25% 1.38 %
Ukraine (Republic of) 4.38% 1.26 %
Name
M&G Securities Ltd
Address
EC4R OHH, London, United Kingdom
UCITS
Yes
Legal Structure
Open Ended Investment Company

Managers

Claudia Calich
Joined 12/02/2013

Claudia Calich joined M&G in October 2013 as a specialist in emerging markets debt and has been fund manager of the M&G Emerging Markets Bond Fund since December 2013. She was also appointed fund manager of the M&G Global Government Bond Fund and deputy manager of the M&G Global Macro Bond Fund in July 2015. In May 2017, Claudia was appointed fund manager of the M&G (Lux) Emerging Markets Hard Currency Bond Fund at its launch. Claudia has over 20 years of experience in emerging markets, most recently as a senior portfolio manager at Invesco in New York.

Data provided by Morningstar.

The Content is only for your general information and use and is not intended to address your particular requirements. The Content does not constitute any form of advice, recommendation or arrangement by Money Observer and is not intended to be relied upon by you in making (or refraining from making) any specific investment or other decisions. Appropriate independent advice should be obtained before making any such decision.

This information is sourced from our partner Morningstar. We believe the data to be correct however you should take care in using any information.

You should be aware that prices may fall as well as rise and that the income derived can go down as well as up. When buying or selling any investment that fluctuates in price or value you may get back less than you invested. Past performance is not necessarily a guide to future performance.