M&G (Lux) Global Macro Bond Fund

Global flexibility and active management in currencies

Fund philosophy

The M&G (Lux) Global Macro Bond Fund is a flexible bond fund whose long-term performance is driven by the active management of its duration, credit risk and currency positioning. Fund Manager Jim Leaviss has the freedom to invest in any region in the world and across the full range of global fixed income securities, including government bonds, investment grade corporate bonds, and high yield and emerging market issues. At least 80% of the fund's fund is invested in these debt securities.  

The fund seeks to make investments that meet the ESG criteria, applying an exclusionary approach.* The fund manager expects at least 70% of the fund to be aligned to the promoted environmental/social characteristics.

*Detailed in the fund prospectus and ESG criteria on the fund webpage.

The fund’s top-down investment approach is based on the fund manager’s macroeconomic views on growth, inflation and interest rates, which is then followed by asset allocation based on a bottom-up approach with assistance from M&G’s extensive team of credit analysts.

Jim Leaviss and his team always look to construct a diversified portfolio with at least four to six uncorrelated themes across bond and currency markets. Recent examples of such themes include:

Source: M&G, 2023.

The fund has no limits on duration positioning, which can be positive as well as negative, and will typically be between -3 and 10 years.

Fund's key selling points

• Flexibility A ‘go-anywhere’ bond fund with the ability to invest in any type of fixed income security, to take advantage of different market conditions.
• Currency The fund has the ability to invest in any currency, including from emerging markets, which can be used both for risk taking and for risk hedging.
• Duration The fund has the ability to go negative duration which provides the potential to reduce the impact on the portfolio should yields rise.
• Experience Fund Manager Jim Leaviss is CIO of Public Fixed Income at M&G. He has over 20 years of fixed interest investing experience and is supported by the significant resources at M&G.

Fund Facts

Visit the fund page

Source of fund facts: M&G as at 31.01.23.

*The benchmark is a comparator against which the fund's performance can be measured. The index has been chosen as the fund's benchmark as it best reflects the scope of the fund's investment policy. The benchmark is used solely to measure the fund's performance and does not constrain the fund's portfolio construction. The fund is actively managed. The investment manager has complete freedom in choosing which investments to buy, hold and sell in the fund. The fund's holdings may deviate significantly from the benchmark's constituents. The benchmark is not an ESG benchmark and is not consistent with the ESG Criteria.

**The ongoing charge is based on expenses as at 30.09.22.

This is a marketing communication. Please refer to the prospectus and to the KID before making any final investment decision.

The value and income from the fund's assets will go down as well as up. This will cause the value of your investment to fall as well as rise. There is no guarantee that the fund will achieve its objective and you may get back less than you originally invested.

Investments in bonds are affected by interest rates, inflation and credit ratings. It is possible that bond issuers will not pay interest or return the capital. All of these events can reduce the value of bonds held by the fund. High yield bonds usually carry greater risk that the bond issuers may not be able to pay interest or return the capital.

The fund can be exposed to different currencies. Movements in currency exchange rates may adversely affect the value of your investment.

Investing in emerging markets involves a greater risk of loss due to greater political, tax, economic, foreign exchange, liquidity and regulatory risks, among other factors. There may be difficulties in buying, selling, safekeeping or valuing investments in such countries.

ESG information from third-party data providers may be incomplete, inaccurate or unavailable. There is a risk that the investment manager may incorrectly assess a security or issuer, resulting in the incorrect inclusion or exclusion of a security in the portfolio of the fund. 

Further details of the risks that apply to the fund can be found in the fund's Prospectus.

The fund allows for the extensive use of derivatives.

The fund may invest more than 35% in securities issued by any one or more of the governments listed in the fund prospectus. Such exposure may be combined with the use of derivatives in pursuit of the fund objective. It is currently envisaged that the fund’s exposure to such securities may exceed 35% in the governments of Germany, Japan, UK, USA although these may vary subject only to those listed in the prospectus.

Investing in this fund means acquiring units or shares in a fund, and not in a given underlying asset such as a building or shares of a company, as these are only the underlying assets owned by the fund.

The views expressed in this document should not be taken as a recommendation, advice or forecast.

For an explanation of the terms used in this document, please refer to the glossary on our website here