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.

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M&G Emerging Markets Bond Fund Sterling I Acc
M&G Securities Ltd
Open Ended Investment Company
Global Emerging Markets Bond
0.75 %
Risk Rating
3 Year Sharpe
3 Year Alpha
5.3 %
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 %
M&G Securities Ltd
EC4R OHH, London, United Kingdom
Legal Structure
Open Ended Investment Company


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.

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