M&G (Lux) Global Macro Bond Fund - Defensive stance in flexible global bond mandate
A macroeconomic outlook of slowing growth remained a key global theme in the year-to-date period. We maintained a cautious approach towards credit in the fund, with preferred areas that included senior debt among US banks. We also continued to favour hard currency emerging market sovereigns on a selective basis. We reduced our overall US dollar allocation in June, largely reflecting our view that the greenback is looking quite highly valued versus other developed market currencies. We added currency exposure elsewhere, including the Japanese yen, which we still consider is undervalued and a helpful risk diversifier.