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THREADNEEDLE EMERGING MARKET BOND (GROSS) - Fund overview

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Overview of THREADNEEDLE EMERGING MARKET BOND (GROSS)

This fund invests predominantly in US$ denominated bonds issued by emerging market (ex G7) countries. The fund is structured with reference to the JP Morgan EMBI Global index (an index of sovereign issued external debt). However, the manager also seeks to maximise dollar returns so he can zero weight countries in the index. Country credit worthiness and political risk are key, although allocation between countries is generally a relative value decision. Sterling investors should note that as the base currency for the fund is US$, investors are susceptible to movements in the £/$ exchange rate.

Standard Initial Charge

3.75% 0.00%

Fund summary

Sector	Global Bonds
Product type	OEIC
Launched	April, 1998
Size	£742m
Yield	5.7%
Charging basis	–
Dividends paid	–
Bid price(inc)	102.80p
Bid price(acc)	184.83p

Fund Charges

Standard Initial charge	3.75%
Initial charge via Bestinvest	0.00%
Additional bid/offer spread	0.00%
Annual management charge	1.50%
Total expense ratio	1.70%
Reduction in yield (10yr)	1.70%

Bestinvest says

No information available.

Portfolio

threadneedle emerging market bond (gross) asset allocation illustration

Allocation		Proportion

	Equity	–
	High yield bonds	42%
	Quality bonds	56%
	Property	–
	Commodities	–
	Hedge	–
	Fund cash	2%

No data available.

View all performance data for THREADNEEDLE EMERGING MARKET BOND (GROSS)

Investment process

The process is macro driven with the team making an assessment of the credit worthiness of and the political risks posed by a country. Although this is a benchmark relative product the manager can zero weight countries in the index if he choses to and use cash aggressively if the asset class is unattractive.
A quantitative country model drives the macro economic assessment and this is updated quarterly. This helps the manager makes relative value calls between countries and in the past it has helped to signal at risk countries. On a daily basis the manager will often pre-empt the model to take advantage of bond price moves. The assessment of political risks is country specific and is often driven by the judgement and experience of the manager and his team.
He will also take advantage of disparities between cash and derivative markets. The fund also has flexibility to hold up to 30% in local currency sovereign debt. Corporate debt is unlikely to be a significant feature of the fund.

The value of your investments and the income from them can go down as well as up, and you can get back less than you originally invested. Past performance or any yields quoted should not be considered reliable indicators of future returns. Before investing in funds please check the specific risk factors on the key features document or refer to our risk warning notice as some funds can be high risk or complex; they may also have risks relating to the geographical area, industry sector and/or underlying assets in which they invest. Prevailing tax rates and relief are dependent on your individual circumstances and are subject to change.

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