Fund Manager Q&A: M&G Global Macro Bond fund

What is the underlying strategy behind the fund?

The M&G Global Macro Bond Fund is a flexible global bond fund. Its long-term returns are driven by the active management of its duration, credit risk, and currency positioning. The fund does not follow a typical benchmark approach, but is designed to enable the fund manager to express his investment views in an unconstrained way as he seeks to outperform the IA Global Bond sector in the UK.

How do you see the global bond market performing over the next one to two years?

The fund manager does not make forecasts for bond market returns. He manages the portfolio based on where he finds the best relative value, and in the current environment of low government bond yields, the manager believes that government bonds lack value and has therefore positioned the fund with significantly short duration. He finds better relative value in the corporate bond markets, where his favoured themes include