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M&G Global Macro Bond Class I - Accumulation (GBP)

Sell:143.97p Buy:143.97p Change: 0.55p (0.38%)
Prices as at 24 May 2024
Change: 0.55p (0.38%)
You can buy or sell holdings in this fund through a Stocks and Shares ISA, Lifetime ISA, SIPP or Fund and Share Account
Prices as at 24 May 2024
Change: 0.55p (0.38%)
Prices as at 24 May 2024
You can buy or sell holdings in this fund through a Stocks and Shares ISA, Lifetime ISA, SIPP or Fund and Share Account
The selling price currently displayed is higher than the buying price. This can occur temporarily for a variety of reasons; shortly before the market opens, after the market closes or because of extraordinary price volatility during the trading day.

Our view on this Fund

This fund is on the Wealth Shortlist of funds our analysts believe have the potential to outperform their peers over the long term. However, this is not a recommendation to buy.

This fund is run by an experienced, talented, manager with great flexibility to invest across global bond markets. A significant proportion of the fund can be invested overseas and the fund can be heavily exposed to foreign currencies, particularly the US dollar.

Unlike many global bond fund managers Jim Leaviss is willing to use the full flexibility afforded to him, invest with conviction, and proactively adjust the portfolio in response to changing economic conditions. He is one of the few fund managers to do this successfully on a global basis and we believe he has the experience and resources to do an excellent job for long-term investors.

The fund could provide diversification to a UK-focused fixed-interest portfolio and offers exposure to currencies other than sterling. Jim Leaviss aims to deliver the best total return (combination of capital growth and income) over the long term. His focus is not to generate a high yield so the fund might not be suitable for investors who require income from their bond investments.

Our view on the sector

Funds in this sector can invest in government and corporate bonds issued globally. And they can often be denominated in overseas currencies. Foreign currencies boost performance if sterling weakens, like it did after the UK voted to leave the European Union in 2016, but the reverse is true when sterling strengthens. These funds can be very different from each other. Some focus on generating income, others try to shelter investors' money during the bad times and might not generate any income. We think there are only a handful of investors with the skill to successfully manage a fund in this sector.

Performance Analysis

Jim Leaviss has managed this fund with his current approach since January 2007. He has historically used the flexibility afforded to him well and he demonstrated this again in mid-2016 with his willingness to take a cautious approach in the run up to the UK's referendum on EU membership, and take advantage of volatility in the wake of the vote. He won't get it right every time, but we believe experience is vital for a manager of this type of fund and Jim Leaviss is one of the most experienced bond fund managers in the UK.

Historically, the fund's currency exposure has had a significant impact on returns, with performance boosted by exposure to the US dollar when it is strong against sterling. We expect the fund's currency exposure to be a key influence on performance going forward.

Investment Philosophy

This fund has a flexible, 'go anywhere' mandate with the manager able to buy government bonds, investment grade corporate debt, higher-risk high-yield bonds, and higher-risk emerging market debt. The overall aim is to invest the portfolio in a diversified range of fixed interest assets and currencies to achieve the best possible return in the prevailing economic environment. There is no explicit performance target, but Jim Leaviss hopes to perform better than his IA Global Bond sector peers over three year periods.

Process and Portfolio Construction

Jim Leaviss starts with his bigger picture outlook for economic growth, interest rates and inflation globally. This helps him determine how much to invest in different areas of the bond market, with the default position being: one-third in global government bonds, one-third in global investment grade corporate bonds, one-sixth in global higher-risk, high-yield bonds and one-sixth in higher-risk emerging market debt.

Broadly speaking, he is likely to have more invested in corporate and emerging market bonds when he is positive; and a greater proportion in government bonds when his outlook is cautious. He can also use derivatives to enhance returns. This allows him to quickly vary exposure to different types of bonds and currencies, as well benefit from falls in asset prices and rising interest rates (which are negative for bonds). He therefore has a lot of flexibility, but this can add risk.

While Jim Leaviss is responsible for the overall allocation to different types of bonds and currencies, he has the support of a talented and well-resourced team when it comes to selecting individual bonds. This includes Richard Woolnough, Ben Lord, Stefan Isaacs, Claudia Calich and Eva Sun-Wai (deputy manager on M&G Global Macro Bond).

question mark Manager Track Record Based on HL Quantitative Research

  • M&G Global Macro Bond X Inc
  • IA Global Bond

Source: Refinitiv Lipper

Fund Track Record

24/05/19 to 24/05/20 24/05/20 to 24/05/21 24/05/21 to 24/05/22 24/05/22 to 24/05/23 24/05/23 to 24/05/24
Annual return 12.32% -8.10% -0.51% -3.60% -2.69%

Please remember past performance is not a guide to future returns. Where no data is shown, figures are not available. This information is provided to help you choose your own investments, remember they can fall as well as rise in value so you may not get back the original amount invested.

Information about the fund

Fund manager biography

manager photo
Manager Name: Jim Leaviss
Manager start date: 15 October 1999
Manager located in: london

Jim Leaviss is Head of Retail Fixed Interest for M&G's mutual fund range. He joined M&G in 1997 after five years at the Bank of England. As well as heading up the team, Jim is the fund manager of the M&G Global Macro Bond Fund and the M&G European Inflation Linked Corporate Bond Fund. He is also deputy manager of the M&G Gilt and Fixed Interest Income Fund, the M&G Index-Linked Bond Fund and the M&G UK Inflation Linked Corporate Bond Fund.

Manager Name: Eva Sun-Wai
Manager start date: 1 February 2024
Manager located in: TBC

Eva Sun-Wai became the lead manager on the Global Government Bond strategy and deputy manager on the Global Macro Bond strategy in January 2021. Since September 2019, Eva had been a junior macro fund manager in the Wholesale Fixed Income team, where her role involved implementing macroeconomic trade ideas in the Global Macro Bond and the Absolute Return Bond strategies. She joined M&G in 2018 on the Investment Graduate Scheme, rotating across several business areas including emerging market debt, corporate credit research, real estate and long-term investment strategy. Before joining M&G, she worked on passive products and ETF strategies as a summer intern at State Street Global Advisors. Eva has a BSc (Hons) Economics degree from the University of Birmingham, has obtained the IMC and Financial Services Level 6 qualifications and is a Level 2 candidate in the CFA Program.

Data policy - All information should be used for indicative purposes only. You should independently check data before making any investment decision. HL cannot guarantee that the data is accurate or complete, and accepts no responsibility for how it may be used. Benchmark data provided subject to this disclaimer.
You can buy or sell holdings in this fund through a Stocks and Shares ISA, Lifetime ISA, SIPP or Fund and Share Account