M&G Emerging Markets Bond Fund Sterling I Inc
A Select 50 Fund - Fidelity insight
Category Global Emerging Markets Bond
This fund can be held in an Investment ISA, SIPP and Investment Account
Last buy/sell price
109.52p
0.14p (+0.13%)
Fund Code
MGEKI
B4TL2D8
GB00B4TL2D89
Prices updated as at 30 Apr 2024
Prices in GBX
Investment objective
The Fund aims to provide a higher total return (the combination of capital growth and income), net of the Ongoing Charge Figure, than that of a composite index over any five-year period. The composite index is made up of one third JPM EMBI Global Diversified Index, one third JPM CEMBI Broad Diversified Index and one third JPM GBI-EM Global Diversified Index. At least 80% of the Fund is invested, directly or indirectly through derivatives, in Emerging Market debt securities. These securities can be issued or guaranteed by Emerging Market governments and their agencies, public authorities, quasi-sovereigns, supranational bodies and companies that are incorporated, domiciled, listed or do most of their business in Emerging Markets. These securities can be denominated in any currency, including Emerging Market currencies.
Important documents: Please ensure that you have read the Key Information Document/Technical Guide
, Pre-sale Illustrations document & Doing Business with Fidelity document (incorporating the Fidelity Client Terms) and the fund information documents. These can be found within the Charges & documents section.
- Key stats
- Growth
- Fidelity insight
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- Charges & documents
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- Risk & rating
- Management
Our view
Why we like the fund:
This fund primarily lends money to governments and companies within emerging markets. Examples of emerging market countries are China, India, Brazil and South Africa. The fund is run by an experienced investor with a strong track record lending money within emerging markets. It benefits from supportive research, covering both companies and governments. This is important because each country requires specialist knowledge and that takes time to build. This manager has the requisite experience, and its understanding of emerging markets is a core competency.
How to use the fund:
Emerging market governments and companies borrow money in both US dollars and in their local currency. This fund lends in a ratio of approximately two-thirds US dollars and one-third local currency. Because the fund operates in regions perceived to be riskier, the interest it receives on its loans is usually healthy and far higher than if it were to lend money to developed market governments. The fund is a useful addition to an income portfolio, but any allocation should reflect its riskier nature and investors should take a long-term view (ten years plus).
