M&G (Lux) Emerging Markets Corporate ESG Bond Fund

Fund Summary

  • ISIN:
    LU2008814357
  • YTD Performance (%):
    -1.36
  • Fund Manager:
    Charles De Quinsonas
  • Share type:
    Acc
  • Morningstar Analyst Rating:
    N/A

Ratings as at 31/12/2019 and should not be taken as a recommendation. Rating is at share class level.

Objective and investment policy

Objective

The fund aims to provide a combination of capital growth and income to deliver a return that is higher than that of the corporate bond markets in emerging markets over any three-year period.

Investment policy and strategy

Core investment: At least 80% of the fund is invested in debt securities issued by companies, including those backed or owned by governments, in emerging markets. These securities are denominated in the currencies of developed countries such as the US dollar, euro, yen and sterling. No credit quality restriction applies, and the fund may invest up to 100% in lower quality debt securities.

The fund invests in securities that meet the investment manager’s environmental, social and governance (ESG) criteria. Companies deemed to be in breach of the United Nations Global Compact principles and/or involved in defence and weapons are excluded. Investments in companies involved in industries such as tobacco and nuclear power are restricted.

Other investments: The fund may invest in debt securities issued by emerging market governments and government-related institutions denominated in any currency, Chinese bonds denominated in renminbi, asset-backed securities and contingent convertible debt securities. The fund may also invest in other funds 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 investment strategy is based on an in-depth analysis of corporate bonds, as well as an evaluation of the risks associated with the respective governments. ESG criteria are assessed as part of the credit analysis of bond issuers, and act as an additional filter to the fund’s exclusion policies.

Benchmark: JPM CEMBI Broad Diversified Index

The benchmark is a comparator against which the fund's performance can be measured. The index has been chosen as the fund’s benchmark as it best reflects the scope of the fund’s investment policy. The benchmark is used solely to measure the fund’s performance and income objective and does not constrain the fund's portfolio construction.

The fund is actively managed.The investment manager has complete freedom in choosing which investments to buy, hold and sell in the fund. The fund’s holdings may deviate significantly from the benchmark’s constituents.

For unhedged and currency hedged share classes, the benchmark is shown in the share class currency.

You can find more information about the objective and investment policy of 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.

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.

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 bonds from China, denominated in Renminbi and traded on the China Interbank Bond Market, may be subject to greater clearing, settlement and counterparty risk. These factors could cause the fund to incur a loss.

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.

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.

Operational risks arising from errors in transactions, valuation, accounting, and financial reporting, among other things, may also affect the value of your investments.

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


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

Charles de Quinsona

Charles De Quinsonas - Fund manager

Charles de Quinsonas is an emerging market corporate bond specialist and has been working as co-fund manager and deputy fund manager for a series of emerging markets corporate bond funds domiciled in London and Luxembourg since 2015. He has more than a decade of emerging market corporate bond experience, with a deep knowledge of high yield credit. Prior to joining M&G in 2014, he worked at Spread Research in Lyon and New York, where he spent four years analysing a variety of high yield and emerging market industrial credits. Charles holds a B.B.A. from ESSEC Business School and a MSc in Corporate Finance from iaelyon School of Management.

 Team member biography
Claudia Calich

Claudia Calich - Deputy Manager

Claudia Calich joined M&G in October 2013 as a specialist in emerging markets debt and, in December 2013, started managing the Emerging Markets Bond strategy. She became manager of the Global Government Bond strategy and deputy manager of the Global Macro Bond strategy in July 2015. Since May 2017, she has also been on the management team of strategies domiciled in Luxembourg. Claudia has more than 20 years of experience in emerging markets, including as a senior portfolio manager at Invesco in New York, and previous positions at 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

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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.