Marketing communication. For Investment Professionals only

M&G (Lux) Global Macro Bond Fund

Global flexibility and active management in currencies
Jim Leaviss, Fund Manager

“This fund's flexibility allows me to take advantage of the prevailing economic conditions and global trends to try to generate attractive returns for investors.”

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.

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, 2022.

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

31 Jul 2022 €672,36 million
Fund launch date 26 October 2018
Benchmark* Bloomberg Barclays Global Aggregate Index
Sector Morningstar Global Flexible Bond
EUR A share class
ISIN (Acc) LU1670719613
ISIN (Dist) LU1670719704
Initial charge Max. 4,00%
AMC 1,25%
Ongoing charge** 1,46%
EUR A-H share class
ISIN (Acc) LU1670719886
ISIN (Dist) LU1670719969
Initial charge Max. 4,00%
AMC 1,25%
Ongoing charge** 1,49% (Acc)
 1,48% (Dist)

Source of fund facts: M&G as at 31.07.22.

*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 ongoing charge is based on expenses as at 31.03.22.

This is a marketing communication. Please refer to the prospectus and to the KIID 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.

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.

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

 

Distribution of this document in or from Switzerland is not permissible with the exception of the distribution to Qualified Investors according to the Swiss Collective Investment Schemes Act ("Qualified Investors"). Supplied for the use by the initial recipient (provided it is a Qualified Investor) only.

The collective investment schemes referred to in this document (the "Schemes") are open-ended investment companies with variable capital, incorporated in Luxembourg. The Instrument of Incorporation, Prospectus, Key Investor Information Document, as well as the annual or interim Investment Report and Financial Statements can be obtained free of charge in English from M&G International Investments Switzerland AG, Talstrasse 66, 8001 Zurich or from Société Générale, Paris, Zurich Branch, Talacker 50, P.O. Box 5070, 8021 Zurich, which acts as the Swiss representative of the Schemes (the "Swiss Representative") and acts as their Swiss paying agent.

Before subscribing investors should read the Prospectus and Key Investor Information Document, which includes a description of the investment risks relating to these funds.

M&G Luxembourg S.A. may terminate arrangements for marketing under the new Cross-Border Distribution Directive denotification process.

Complaints handling information is available in English from https://www.mandg.com/investments/professional-investor/en-ch/contact-us

This financial promotion is issued by M&G Luxembourg S.A. Registered Office: 16, boulevard Royal, L-2449, Luxembourg.