Global Government Bond Fund

ISIN
GB00BMP3S253

Price (09.12.2019)
10.14

% Price Change
0.09

Objective and investment policy

Objective

The fund aims to provide income and capital growth.

Investment policy and strategy

Core investment: At least 70% of the fund is invested in investment grade (high-quality) bonds issued by governments, or are guaranteed by governments, from anywhere in the world. 

Other investments: The fund also invests in bonds with a lower credit rating than investment grade issued by governments, or are guaranteed by governments. In addition, it may hold cash or assets that can be turned into cash quickly. 

Use of derivatives: Derivatives may be used to invest indirectly in bonds, to reduce risks and costs and to manage the impact of changes in currency exchange rates on the fund’s investments. 

Strategy in brief: The fund manager selects investments based on an assessment of macroeconomic factors such as economic growth, interest rates and inflation. This analysis determines the individual government bonds from different countries in which the manager believes the fund should invest in order to achieve its objective. It also influences the currencies to which the fund will be exposed. The manager is assisted in the selection of individual government bonds by the deputy fund manager and an in-house team of analysts. The fund is diversified by investing in a range of government bonds from across the globe. 

Glossary terms 

Bonds: Loans to governments and companies that pay interest. 

Derivatives: Financial contracts whose value is derived from other assets.

Risk indicator

Risk level 4

Risks associated with the fund

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.

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

The fund may use derivatives to profit from an expected rise or fall in the value of an asset. Should the asset's value vary in an unexpected way, the fund may lose as much as or more than the amount 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.

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.

In exceptional circumstances where assets cannot be fairly valued, or have to be sold at a large discount to raise cash, we may temporarily suspend the fund in the best interest of all investors.

The fund could lose money if a counterparty with which it does business becomes unwilling or unable to repay money owed to the fund.

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

Other information

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.

The Fund allows for the extensive use of derivatives. 

Performance

The value of investments will fluctuate, which will cause fund prices to fall as well as rise and you may not get back the original amount you invested. The level of any income earned by the fund will fluctuate. Past performance is not a guide to future performance.

On 01 June 2013, 01 July 2014 and 01 July 2016, the fund’s performance comparative index changed.

Past performance shown from the date selected to 31 May 2013 is the CITI Group Non GBP World Government Bond Index. Past performance shown from the 01 June 2013 to 30 June 2014 is the Barclays Global Aggregate Treasury Custom 3bn Index. Past performance shown from 01 July 2014 to 30 June 2016 is the Barclays Global Treasury Index. As from 01 July 2016 the fund no longer has a performance comparative index.


Source: Price: State Street. Performance: Morningstar. For non-Sterling share classes for fixed income and global convertibles funds, performance figures are shown on a price to price with gross income reinvested basis*. For equities and multi-asset funds, performance figures are shown on a price to price with net income reinvested basis. For Sterling share classes performance figures are on a price to price with net income reinvested basis. Performance figures may not reflect all relevant charges.

Fund Team

Claudia Calich

Claudia Calich - Fund manager

Claudia Calich joined M&G in October 2013 as a specialist in emerging markets debt and is manager of the M&G (Lux) Emerging Markets Bond Fund and the M&G (Lux) Emerging Markets Hard Currency Bond Fund since launch. She is also manager of the M&G Global Government Bond Fund (UK-authorised OEIC) and deputy manager of the M&G (Lux) Global Macro Bond Fund and of the M&G (Lux) Emerging Markets Corporate ESG Bond Fund. Claudia has over 20 years of experience in emerging markets, with previous positions at Invesco in New York, Oppenheimer Funds, Fuji Bank, Standard & Poor’s and Reuters. Claudia graduated with a BA (Honours) in Economics from Susquehanna University in 1989 and holds an MA in International Economics from the International University of Japan in Niigata.

 Team member biography
Jim Leaviss

Jim Leaviss - Deputy Manager

Jim Leaviss is Head of M&G's Wholesale Fixed Income team, joining M&G in 1997 after five years at the Bank of England. As well as heading up the team, Jim also manages the M&G (Lux) Global Macro Bond Fund and is co-manager of the M&G (Lux) Absolute Return Bond Fund and deputy manager of the M&G Global Government Bond Fund (UK-authorised OEIC).

 Team member biography
Pilar Arroyo

Pilar Arroyo - Investment specialist

Pilar Arroyo joined M&G in 2018 as an investment specialist providing support for the M&G fixed interest fund range. Pilar spent six years as a fixed income specialist at Credit Andorra, initially as part of the fixed income desk, then later joining the Asset Management team for institutional clients. Before this, she was an analyst at Deutsche Bank Asset & Wealth Management. Pilar holds a degree in Business Economics from Universidad Pontificia de Comillas (ICADE) in Madrid. She is fluent in Spanish and English.

 

 Team member biography

Ratings

Rating is at a share class level

5 Star Rating

Ratings as at 31/10/2019. The Morningstar Overall Rating. Copyright © 2019 Morningstar UK Limited. All Rights Reserved. The Morningstar Analyst Rating™. © 2019 Morningstar. All Rights Reserved. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Ratings should not be taken as recommendation.

On 01 June 2013, 01 July 2014 and 01 July 2016, the fund’s performance comparative index changed.

Past performance shown from the date selected to 31 May 2013 is the CITI Group Non GBP World Government Bond Index. Past performance shown from the 01 June 2013 to 30 June 2014 is the Barclays Global Aggregate Treasury Custom 3bn Index. Past performance shown from 01 July 2014 to 30 June 2016 is the Barclays Global Treasury Index. As from 01 July 2016 the fund no longer has a performance comparative index.

For Investment Professionals only. Not for onward distribution to any other type of client. No other persons should rely on the information contained on this website. Content should therefore be shared responsibly with other investment professionals. The value of investments will fluctuate, which will cause fund prices to fall as well as rise and you may not get back the original amount you invested.