M&G Investments, one of the leading international asset managers, announces the launch of two new emerging markets funds focusing on hard currency debt and income opportunities respectively.
The M&G (Lux) Emerging Markets Hard Currency Fund will be managed by the same team behind the M&G Emerging Markets Bond Fund, a top quartile performer since fund manager tenure*. Fund manager Claudia Calich and deputy fund manager Charles de Quinsonas will blend high-conviction macro calls with fundamental credit analysis to build a ‘best ideas’ portfolio from the fund’s investment universe. The fund will aim to provide a higher total return** than that of the hard currency emerging markets bond market over any three-year period. At least 80% of the portfolio will be invested in emerging market bonds issued by governments or quasi-sovereigns agencies denominated in hard currency.
The M&G (Lux) Emerging Markets Income Opportunities Fund will aim to deliver income (4-6% p.a.) and long-term capital growth by investing in emerging market equities and corporate debt. Michael Bourke, member of the Emerging Markets Equity team, will be the fund manager and Charles de Quinsonas, member of the Retail Fixed Interest team, will be deputy fund manager. Emerging market corporate bonds and equities are complementary asset classes and combining them in a portfolio provides diversification benefits, as well as a considerable scope to select the optimal combination of income-generating assets at any particular time. The fund managers will follow a bottom-up approach; the equities held by the fund will all be dividend-paying stocks, with a focus on potential long-term total return. The corporate bonds will be selected through fundamental analysis, assessing corporates’ business and financial risk, and incorporating views on sovereign risk.
Graham Mason, CIO for M&G equity, multi-asset and retail fixed interest comments: “Emerging markets and developing economies account for 60% of the world’s GDP***, presenting those investors who can navigate the higher uncertainty with better-yielding opportunities compared to developed markets. The funds we are launching leverage the proven track-record of our emerging markets equity and fixed income teams, who have over 100 years of combined investment experience.”
Emerging markets and developing economies account for 60% of the world’s GDP***, presenting those investors who can navigate the higher uncertainty with better-yielding opportunities compared to developed markets. The funds we are launching leverage the proven track-record of our emerging markets equity and fixed income teams, who have over 100 years of combined investment experience.
Graham Mason,
CIO, M&G equity, multi-asset and retail fixed interest