M&G Emerging Markets Bond Fund Sterling I Acc

Global Bonds

Rated Fund 2016-19. 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, which currently yields just under 7%, 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.

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.

Narrative and ratings content all as of 01 January 2019.

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
0.79 %
Risk Rating
3
3 Year Sharpe
0.96
3 Year Alpha
3.13
Yield
5.4 %
Benchmark
EMBO Benchmark
The Fund aims to maximise total return (the combination of income and growth of capital).
Holding %
United States Treasury Notes 3.62% 5.14 %
Secretaria Tesouro Nacional 10% 3.10 %
Russian Federation 8.15% 2.76 %
Malaysia (Government Of) 3.88% 1.93 %
Indonesia (Republic of) 8.25% 1.85 %
National Highways Authority of India 7.3% 1.70 %
The Republic of Peru 8.2% 1.69 %
Debt and Asset Trading Corporation 1% 1.41 %
Bogota, Distrito Capital 9.75% 1.41 %
Republic of Rwanda 6.62% 1.32 %
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.

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