e-fundresearch.com: Mr. Leaviss, you are Head of Retail Fixed Interest for M&G’s mutual fund range and the manager of the M&G Global Macro Bond Fund (ISIN: GB00B9FPWZ14 - Euro share class A Inc.) When did you take over the responsibility of managing this fund?
Jim Leaviss: October 1999 (from fund launch)
e-fundresearch.com: What is the current size of the fund?
Jim Leaviss: 1.506m euros at 31/8/2013
e-fundresearch.com: Do you also manage other funds or mandates?
Jim Leaviss: Yes, I manage the M&G Gilt & Fixed Interest Income Fund and I co-manage the M&G European Inflation Linked Corporate Bond Fund.
e-fundresearch.com: What is the total amount of assets you manage currently?
Jim Leaviss: 3.415m euros at 31/8/2013
e-fundresearch.com: How long have you been in the business as a fund manager?
Jim Leaviss: I joined M&G in 1997 after five years at the Bank of England.
e-fundresearch.com: What are the main steps in your investment process and in which area is your competitive edge to add value to investors?
Jim Leaviss: The M&G Global Macro Bond Fund is an unconstrained ‘go anywhere’ total return global bond fund, designed to deliver returns in all market conditions with low volatility. It can invest in the full spectrum of global fixed income securities globally in order to take advantage of prevailing trends.
Credit and duration are the main drivers of returns; unlike other global bond funds I can move the fund to a negative duration position if I expect yields to rise, enabling the fund to make money where conventional funds would lose value. Aside from this, active management of currency exposure and the use of derivatives and credit leverage are also levers for generating performance.
e-fundresearch.com: Which benchmark is most relevant and how should investors compare the fund vs. benchmarks or peer groups?
Jim Leaviss: The comparative sectors are the Morningstar Global Bond sector and the Morningstar Global Bond – EUR hedged sector.
e-fundresearch.com: Which performance did you achieve for the fund YTD and over the past five calendar years in absolute terms and relative to relevant benchmark or other reference indices?
Jim Leaviss: The fund was registered in Europe in February 2012.
Euro A share class
YTD: -1.9% (vs. sector return of -4.7%)
Annual performance 2012: 10.0% (vs. sector return of 6.0%)
Annualised performance since launch: 4.3% (vs. sector return of 3.8%)
Performance over one year: -0.7% (vs. sector return of -4.1%)
Source: Morningstar Inc, Pan-European database, as at 13 September 2013, euro A class shares, gross income reinvested, price-to-price basis.
Euro A hedged class
YTD: 0.3% (vs. sector return of -2.4%)
Annual performance 2012: 6.5% (vs. sector return of 8.7%)
Annualised performance since launch: 7.7% (vs. sector return of 6.6%)
Performance over one year: 2.4% (vs. sector return of -0.4%)
Source: Morningstar Inc, Pan-European database, as at 13 September 2013, euro A-H class shares, gross income reinvested, price-to-price basis.
e-fundresearch.com: Many thanks!
