M&G Global Macro Bond A

An unconstrained global fund which will apply an active currency overlay as well as retaining the ability to go negative duration.

  • 91.14p
    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.

  • 148.81p
    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?

  • 3.00% 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!

  • 1.25%
    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).

  • 1.40%
    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.

  • 1.50%
    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 27 November 2020

This is M&G's most flexible fixed income mandate. It retains the right to invest globally across the sovereign and corporate bond credit spectrum. The application of an active currency overlay will feature as a significant contributor to total returns. The fund also retains the ability to go negative duration. The fund's base currency is sterling and it is classified in the IA Global Bond sector.

Fund summary

Sector Global Bonds
Structure OEIC
Launched October, 1999
Size £1,497m
Yield 1.50%
Charging basis Income
Dividends paid 28 Feb 31 May 31 Aug 30 Nov

Charges

Standard initial charge 3.00%
Initial charge via Bestinvest 0.00%
Additional bid/offer spread 0.00%
Annual management charge 1.25%
Ongoing charges figure 1.40%

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Investment process

A sophisticated UCIT 3 fund which retains the right to employ derivatives to increase or reduce the fund's risk exposures. The fund aims to outperform its peer group and its composite benchmark consisting a third each of sovereign bonds, quality corporate bonds and high yield bonds) at lower levels of volatility. In order to achieve these objectives the fund is unconstrained, enabling the manager to invest globally across the sovereign and corporate bond credit spectrum. The fund's lower volatility of returns are achieved by incorporating 4-5 themes which offer low correlations. The investment philosophy is top down, with a focus on identifying regime change and to what degree this is priced into markets. At anyone time the maximum exposure to sterling is likely to be 60% of NAV, the USD 70%. The fund targets total returns over the medium term and should not be considered an absolute return fund, albeit its mandate flexibility theoretically enables it to deliver in any market environment.

Relative to strategic bond funds which investors may be familiar with this style of mandate enables the manger to take active currency positions to compliment returns as well as taking duration negative at the portfolio level.

Manager research

Average monthly relative returns

  • 15/16 -0.18%
  • 16/17 0.33%
  • 17/18 -0.10%
  • 18/19 -0.12%
  • 19/20 0.24%

Bestinvest MRI

  • 3 years 0.01%
  • 5 years 0.03%
  • Career -0.01%
  • 3 years 70.50%
  • 5 years 77.90%
  • Career 87.30%

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

Jim Leaviss

Leaviss joined M&G in 1997, where he is now Head of M&G Retail & Institutional Fixed Income, a director of M&G Investment Management and a fund manager on the global fixed interest desk. After leaving university in 1992, he joined the Bank of England as an analyst of monetary statistics and PSBR. He later moved within the Bank to become a gilt and money market trader, a position he occupied for three years. Leaviss is a graduate of Manchester University with a BA in Economics.

Track record

Jim Leaviss has 21 years experience of managing mutual funds in this sector. Over this period the average monthly return relative to the benchmark index has been -0.01%. During the worst period of relative performance (from January 2001 - March 2009) there was a decline of 20% relative to the index. The worst absolute loss has been 20%.

Periods of worst performance

Absolute -20.00% (February 2001 - July 2002)
Relative -20.00% (January 2001 - March 2009)

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

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Top 10 holdings

Data accurate as at 31 July 2020

11.3946% United States Of Amer Treas Bills 2.75% Tnt 15/02/28 Usd100
9.2485% United States Of Amer Treas Notes 0.625% Tnt 15/05/30 Usd100
8.3767% United States Of Amer Treas Bills 3% Tnt 15/08/48 Usd100
4.7147% United States Of Amer Treas Bonds 3.875% Tips 15/4/2029 Usd1000
3.8816% Netherlands(Kingdom Of) 0% Bds 15/07/30 Eur1000
3.5874% Germany(Federal Republic Of) 0.5% Bds 15/02/25 Eur0.01
3.4172% Hm Treasury United Kingdom Dmo 1.625% Treasury Gilt 22/10/28 Gbp0.01
2.4848% Japan Government 0.1% Bds 10/03/29 Jpy100000
2.3333% United States Of Amer Treas Notes 0.625% Nts 15/01/26 Usd100
1.876% Australia(Commonwealth Of) 1.75% Bds 21/06/51 Aud1000
Source: Trustnet

Sector breakdown

Government Bonds 65.00%
Banks 8.00%
Government Bonds 5.00%
Money Market 4.00%
Fixed Interest 3.00%
Technology 2.00%
Mortgage & Secured Bonds 2.00%
Insurance 2.00%
Capital Goods 1.00%
Asset/Mortgage-Backed Securities 1.00%

Portfolio

May invest in a combination of collectives, direct holdings and derivatives. Exposures to individual AAA rated securities may account for a large % of NAV.

Constraints

portfolio duration range: -3 to +10yrs. max 20% short any one currency. max 5% exposure to any EM currency.

Key Investor Information - Income

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Key Investor Information - Accumulation

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