Global Government Bond Fund

Objective and investment policy

Objective

The fund aims to provide a combination of capital growth and income, net of the Ongoing Charge Figure, higher than that of the average return of the IA Global Bond Sector over any five-year period.

Investment policy and strategy

Core investment: At least 70% of the fund is invested, directly or through derivatives, in investment grade bonds issued or guaranteed by governments and government-related institutions from anywhere in the world, including emerging markets. These bonds can be denominated in any currency.

Other investments: The fund may invest in high yield bonds, asset-backed securities, other funds (including funds managed by M&G) and cash or assets that can be turned into cash quickly.

Derivatives: The fund may invest via derivatives and use derivatives to reduce the risks and costs of managing the fund.

Strategy in brief: The fund manager selects investments based on an assessment of global, regional, and country-specific macroeconomic factors, followed by in-depth analysis of individual bond issuers.

The fund is diversified by investing in a range of government bonds across the world.

Benchmark: IA Global Bond Sector


The benchmark is a target which the fund seeks to outperform. The sector has been chosen as the benchmark as the fund is a constituent of the sector. The benchmark is used solely to measure the fund’s performance and does not constrain portfolio construction.


The fund is actively managed. The fund manager has complete freedom in choosing which investments to buy, hold and sell in the fund.

The benchmark is shown in the share class currency.

You can find more information about the fund in the Prospectus..

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. 


The performance webpage for this fund is currently being reconfigured. In the interim, for performance information, please refer to the latest Fund Factsheet which can be found in the Literature section.

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.

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Jim Leaviss

Jim Leaviss - Deputy Manager

Jim Leaviss is Head of M&G's Public 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).

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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.

 

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Ratings

Rating is at a share class level

4 Star Rating

Ratings as at 28/02/2020. 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.

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The value of 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 and you may get back less than you originally invested.

This financial promotion is issued by M&G International Investments S.A.