M&G Global Macro Bond Fund Sterling I Acc

Global Bonds

Rated Fund 2014-19. An eclectic and flexible approach

Jim Leaviss has run this fund in its various iterations for 20 years – since its inception in 1999. He aims to deliver income and capital growth by investing in any type of fixed interest security in the world.

The fund currently yields 3% and pays dividends quarterly. Its ongoing charges of 0.82% are higher than the sector average of 0.67%, but worth paying given the fund’s consistent track record.

Leaviss uses his flexibility to take advantage of different economic conditions and global trends, including interest rate movements and inflation. His assessment of these macroeconomic factors determines the asset classes in which the fund invests, in order to achieve its objective of maximising long-term total returns. His assessment also influences the portfolio’s mix of interest rate risk, credit risk and currency exposure.

This approach means that Leaviss can constantly reassess relative value from among the whole range of different bond types, from ‘safe haven’ government bonds to riskier corporate and emerging market bonds. Leaviss actively manages the types of bond in the fund and their maturities, and by using derivatives he believes he can also ensure that the fund is able to perform in all types of market conditions. He can also invest in any currency, offering further diversification benefits.

He examines the relative attractiveness of different currencies, analysing indicators such as capital flows, economic growth and current account balances, monetary policy and inflation.

Narrative and ratings content all as of 01 January 2019.

See all Money Observer rated funds
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
0.82 %
Risk Rating
1
3 Year Sharpe
0.60
3 Year Alpha
1.64
Yield
2.5 %
Benchmark
N/A
The Fund’s objective is to maximise long term total return (the combination of income and growth of capital).
Holding %
United States Treasury Notes 2.75% 23.09 %
Euro BOBL Future June19 10.13 %
Us 10yr Note (Cbt)jun19 7.97 %
United States Treasury Notes 0.68% 7.68 %
Euro BUND Future June19 5.82 %
United States Treasury Notes 2.38% 4.85 %
United Kingdom of Great Britain and Northern Ireland 2% 3.42 %
United States Treasury Bonds 3% 2.73 %
Germany (Federal Republic Of) 0.5% 2.55 %
Bpm2a2ge3 Cds Usd P F 1.00000 2.20 %
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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