Factsheet: M&G Emerging Markets Bond GBP I Acc

Emerging Markets

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
Name
M&G Emerging Markets Bond GBP I Acc
Manager
M&G Group
Type
Open Ended Investment Company
ISIN
GB00B7GNKY53
Sector
Global Emerging Markets Bond
Launched
19/04/2012
OCF
0.79 %
Risk Rating
3
3 Year Sharpe
0.99
3 Year Alpha
3.29
Yield
5.2 %
Benchmark
Not Benchmarked
The Fund aims to maximise total return (the combination of income and growth of capital). The Fund invests mainly in debt instruments issued by emerging market borrowers, including government, government agency and corporate debt. There are no restrictions on the currencies to which the Fund may be exposed. Derivatives may be used for investment purposes as well as for efficient portfolio management. The Fund may also invest in collective investment schemes, other transferable securities (including other debt instruments), cash and near cash, deposits, warrants and money market instruments. M&G has the discretion to identify the countries that it considers to qualify as emerging markets although these will typically be those that the IMF or World Bank define as emerging or developing economies.
Holding %
Singapore(Govt Of) 4% 3.13 %
Russian Federation 8.15% 2.41 %
Indonesia(Rep Of) 8.25% 2.33 %
Brazil Federative Rep 10% 2.10 %
Natl Highways 7.3% 2.01 %
Peru Rep 8.2% 1.97 %
Israel(State Of) 2.25% 1.86 %
Malaysia Government 1.64 %
Northern Trust Global US Dollar D 1.63 %
Sth Africa(Rep Of) 8.75% 1.60 %
Region %
Sector %
Name
M&G Group
Address
EC4R 0HH, 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 was appointed fund manager of the M&G Emerging Market Bond Fund in December 2013. Claudia has over 20 years’ experience in emerging markets, most recently at Invesco in New York, where she was a senior portfolio manager and lead manager of the Invesco Emerging Market Bond and Global High Income funds. In addition, she was lead manager for Invesco’s institutional emerging market separate accounts. Prior to this, Claudia was with Oppenheimer Funds, which she joined in 1999.

Data provided by Morningstar.

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