M&G Emerging Markets Bond Fund Sterling I Acc
Rated Fund 2016-2018. Offers mix of government and corporate bonds
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, she 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, and they now offer widely diversified investment choices across geographies and industry sectors. At the end of 2017, almost 30 per cent of the fund was in corporate bonds.
Narrative and ratings content all as of 01 January 2018.See all Money Observer rated funds
|United States Treasury Notes 3.62%||5.09 %|
|Russian Federation 8.15%||2.65 %|
|Secretaria Tesouro Nacional 10%||2.56 %|
|Malaysia (Government Of) 3.88%||1.86 %|
|PEMERINTAH REPUBLIK INDONESIA 8.25%||1.68 %|
|The Republic of Peru 8.2%||1.64 %|
|Israel (State Of) 2.25%||1.56 %|
|Northern Trust Global US Dollar D||1.54 %|
|National Highways Authority of India 7.3%||1.51 %|
|Bogota, Distrito Capital 9.75%||1.47 %|
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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