M&G Global Convertibles I GBP

Invested globally in "at the money" convertibles.

  • 1641.13p
    Price (Inc)

    These are the shares in the fund that pay out an income to clients. The income is made up of the total dividends – the money a company can pay out to its investors – from the companies in the fund.

  • 268.19p
    Price (Acc)

    These are the shares in the fund that don’t pay out an income to clients. Any dividends – the money a company can pay out to its investors – are reinvested into companies in the fund. Despite no income, the shares should be worth more over time. Good incentive, eh?

  • 1.00% 0.00%

    Initial charge

    Some funds charge you when you first invest, which is aptly known as the initial charge. They’re usually between 3-5% but at Bestinvest, we usually don’t charge you a penny!

  • 0.75%
    Annual management charge

    This is how much the fund management company charges to run the fund. It’s like paying a babysitter, dog sitter or house sitter (that makes well-informed, heavily researched changes to improve your baby/dog/house when needed).

  • 0.92%
    Ongoing charges

    This stands for Ongoing Charges Figure. It’s the cost of running a fund and includes admin fees, manager fees, administration costs, etc.

  • 3.00%
    Yield

    How much the fund is currently paying out in income to investors. It’s NOT to be confused with the overall growth of a fund – a very different thing indeed. It’s also NOT a guarantee of future pay-outs, just a snapshot. This is more what it’s not than what it is…

Prices as at 22 January 2021

An actively managed, global convertible bond fund. Convertible bonds give the investor the option to convert into shares of the issuing company for a certain price at a fixed date. The value of a convertible depends on term interest rates, credit quality, and the share price of the company. Convertibles generally outperform straight bonds when equity markets are rising. This fund attempts to optimise the sweet spot for upside returns whilst limiting downside potential. Non-sterling currency exposure remains unhedged. Due to their nature, specialist funds can be subject to specific sector risks. Investors should ensure they read all relevant information in order to understand the nature of such investments and the specific risks involved.

Fund summary

Sector Specialist
Structure OEIC
Launched July, 2007
Size £289m
Yield 3.00%
Charging basis Income
Dividends paid Mar

Charges

Standard initial charge 1.00%
Initial charge via Bestinvest 0.00%
Additional bid/offer spread 0.00%
Annual management charge 0.75%
Ongoing charges figure 0.92%

Allocation

Proportion (%)

  • {{chartDataItem.text}}
    {{chartDataItem.value}}

Allocation

Proportion (%)

  • {{chartDataItem.text}}
    {{chartDataItem.value}}

Allocation

Proportion (%)

  • {{chartDataItem.text}}
    {{chartDataItem.value}}

Investment process

Fund risk is managed by minimising the distance to the bond ‘floor’, the maximum loss that the convertible can suffer if the underlying share price declines, provided that credit quality does not deteriorate. The manager aims to keep the delta of the portfolio (the sensitivity to equity movements) within a range of 0.30-0.75. The manager may use derivatives to restructure the portfolio and to modify sensitivity to underlying equity price movements. The fund’s currency exposure is not hedged as the manager believes currency diversification improves returns over the long term. The fund has a bias to convertible bonds carrying an investment grade as opposed to a high yield rating.

The fund follows an unconstrained approach and selects holdings from the investment universe on a bottom-up basis. The manager does not take top-down views on the direction of the markets. He has the flexibility to pick stocks purely on their merits, without any pre-set geographical guidelines or limits set by macro or sector top-down views but with a view to the fund staying true to its 'at the money' mandate ie close to conversion.

Manager research

Average monthly relative returns

  • 16/17 -0.08%
  • 17/18 -0.32%
  • 18/19 -0.55%
  • 19/20 -0.36%
  • 20/21 -0.84%

Bestinvest MRI

  • 3 years -0.58%
  • 5 years -0.43%
  • Career -0.07%
  • 3 years 1.50%
  • 5 years 1.40%
  • Career 51.20%

Performance figures are based on the average of monthly percentage returns relative to the benchmark index.

Leonard Vinville

Leonard Vinville joined M&G in January 2002. He previously worked at AGF AM Asset Management (Allianz-Dresdner Group) in Paris where he was the co-head of French equities fund management and responsible for assets of €1.5 billion. Prior to this, Leonard was a financial analyst with Bleu Nuit in Paris. He gained a DEUG and CPEG (Diploma and Certificate of Management Graduate Studies) from the University of Paris in 1990 and completed a master in management in 1992. In 1994, Leonard gained a DECF – Grand Oral of the Chartered Accountant Degree. He completed an MBA (majoring in finance) at the University of London in 1996.

Track record

Leonard Vinville has 17.9 years experience of managing mutual funds in this sector. Over this period the average monthly return relative to the benchmark index has been -0.07%. During the worst period of relative performance (from November 2008 - December 2020) there was a decline of 37% relative to the index. The worst absolute loss has been 13%.

Periods of worst performance

Absolute -13.00% (May 2008 - October 2008)
Relative -37.00% (November 2008 - December 2020)

About the MRI

Our unique indicator: the Bestinvest Manager Record Index (MRI) measures the likelihood that the fund manager is adding value through their decisions. It is based on their performance record over the course of their career, adjusted for the amount of risk taken. MRI is an important contributor to our fund rating system but it is also vital to take account of qualitative factors. It is also very important to select funds to form a cohesive portfolio with an appropriate overall risk level.

Allocation

Proportion (%)

  • {{chartDataItem.text}}
    {{chartDataItem.value}}

Allocation

Proportion (%)

  • {{chartDataItem.text}}
    {{chartDataItem.value}}

Allocation

Proportion (%)

  • {{chartDataItem.text}}
    {{chartDataItem.value}}

Top 10 holdings

Data accurate as at 31 July 2020

2.5121% Palo Alto Networks Inc 0.75% Bds 01/07/23 Usd1000
2.4188% Proofpoint Inc 0.25% Cnv Bds 15/08/24(Proofpoin)Usd1000
2.3636% Jpmorgan Chase Bank Na 0% Exch Nts 07/08/22 Usd2000reg S
2.209% Booking Hldgs Inc 0.75% Cnv Bds 01/05/25(Bkng)Usd1000144a
2.1985% Vinci Sa 0.375% Cnv Bds 16/02/22 Usd200000
1.9365% Southwest Airlines Co 1.25% Cnv Bds 01/05/25(Luv Us)Usd1000
1.8478% Akamai Technologies 0.375% Cnv Bds 01/09/27(Akamai)Usd1000
1.847% Silicon Laboratories 0.625% Bds 15/06/25 Usd1000
1.8108% Yandex Nv 1% Nts 03/03/25 Usd200000
1.7662% Cellnex Telecom Sa 0.5% Cnv Bds 05/07/28 Eur100000reg S
Source: Trustnet

Sector breakdown

Technology 34.00%
Consumer Services 18.00%
Health Care 14.00%
Industrials 10.00%
Financials 7.00%
Consumer Goods 5.00%
Basic Materials 4.00%
Telecommunications 2.00%
Oil & Gas 2.00%
Money Market 2.00%

Portfolio

The fund manager aims to run a concentrated, high-conviction portfolio with a number of stocks between 40 and 60. The fund follows an unconstrained approach. Holdings are selected purely on a bottom-up basis.

Constraints

The fund follows an unconstrained approach and selects holdings from the investment universe on a bottom-up basis. The manager has the flexibility to pick stocks purely on their merits, without any preset geographical guidelines or limits set by macro or sector top-down views.

Key Investor Information - Income

Download

Key Investor Information - Accumulation

Download