M&G Global Macro Bond Fund Sterling I Acc

Global Bonds

Rated Fund 2014-20. Eclectic and flexible approach for all market conditions      

The flexible, go-anywhere strategy of M&G Global Macro Bond means it is a decent core diversifier. It currently yields 2% and pays dividends quarterly. Jim Leaviss has run this fund since its inception in 1999. He can invest in any type of fixed-interest security in the world. His focus in recent years has been on highly rated bonds – he had almost three-quarters of assets in investment-grade bonds at the end of 2019, with a quarter in cash.

Leaviss is able to take advantage of different economic conditions and global trends, including interest rate movements and inflation. His assessment of these factors determines the asset classes the fund invests in and influences the portfolio’s mix of interest rate risk, credit risk and currency exposure.

This approach means Leaviss can constantly reassess relative value among the whole range of bonds, from ‘safe haven’ government bonds to riskier corporate and emerging market bonds. Different asset classes in the fixed-income universe have variable sensitivity to interest rate changes, and Leaviss can increase or reduce the fund’s duration depending on the outlook for interest rates across global markets. He actively manages the types of bond in the fund and their maturities, and he uses derivatives to ensure the fund is able to perform in all market conditions.

Narrative and ratings content all as of 01 January 2020.

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Name
M&G Global Macro Bond Fund Sterling I Acc
Manager
M&G Securities Ltd
Type
Open Ended Investment Company
ISIN
GB00B78PGS53
Sector
Global Bonds
Launched
16/12/2011
OCF
0.78 %
Risk Rating
1
3 Year Sharpe
0.77
3 Year Alpha
1.46
Yield
1.8 %
Benchmark
IA Global Bonds
The Fund aims to provide a higher total return (the combination of capital growth and income) net of the Ongoing Charge Figure, than the average return of the IA Global Bonds Sector over any five-year period. At least 80% of the Fund is invested, directly or indirectly through derivatives, in debt securities and in Asset-Backed Securities. These securities can be issued or guaranteed by governments and their agencies, public authorities, quasi-sovereigns, supranational bodies and companies from anywhere in the world, including Emerging Markets. These securities can be denominated in any currency.
Holding %
United States Treasury Notes 2.75% 22.70 %
United States Treasury Notes 0.62% 12.72 %
United Kingdom of Great Britain and Northern Ireland 1.62% 9.43 %
United States Treasury Bonds 3% 8.23 %
Germany (Federal Republic Of) 0.5% 4.02 %
Japan (Government Of) 0.1% 3.03 %
Japan (Government Of) 1.3% 1.89 %
Norway (Kingdom Of) 2% 1.74 %
Canada (Government of) 1.75% 1.57 %
European Bank For Reconstruction & Development 1.7% 1.53 %
Name
M&G Securities Ltd
Address
EC4R OHH, London, United Kingdom
UCITS
Yes
Legal Structure
Open Ended Investment Company

Managers

Jim Leaviss
Joined 10/15/1999

Jim Leaviss is Head of Retail Fixed Interest for M&G’s mutual fund range. He joined M&G in 1997 after five years at the Bank of England. As well as heading up the team, Jim is co-manager of the M&G (Lux) Absolute Return Bond Fund and also manages the M&G Global Macro Bond Fund and is deputy fund manager of the M&G Global Government Bond Fund.

Data provided by Morningstar.

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