M&G (Lux) Emerging Markets Income Opportunities Fund


Price (25.02.2021)

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Objective and investment policy


The fund aims to provide an annual yield of 4-6%. The fund also aims to grow capital over any five-year period.

Investment policy and strategy

Core investment: At least 80% of the fund is invested in emerging market assets including:

• at least 25% in the shares of companies, across any sector and of any size, that are based, or do most of their business, in emerging markets;

• at least 25% in bonds issued by companies or government-related institutions that are that are based, or do most of their business, in emerging markets; and

• property-related securities.

The fund may invest in China A-Shares and in Chinese bonds denominated in renminbi.

Other investments: The fund may invest in asset-backed securities, contingent convertible debt securities, other funds and cash or assets that can be turned into cash quickly.

Derivatives: The fund may also invest via derivatives and use derivatives to reduce the risks and costs of managing the fund.

Strategy in brief: The fund is actively managed. The fund employs a bottom-up approach to find the best investments to deliver on its income target while striving to generate long-term capital growth. The fund’s allocation between bonds and shares is an output of the investment process and portfolio construction and, as such, is the result of the investment manager investing in the best ideas, individually and relatively, across the capital spectrum.

Benchmark: The fund is actively managed and has no benchmark. Investors can assess the performance of the fund by its objective to provide an annual yield of 4-6% and grow capital over any five-year period.

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.

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.

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.

The fund may be highly concentrated at times in a limited number of investments or areas of the market, which could result in large price rises and falls.

Investments in assets from China are subject to changeable political, regulatory and economic conditions, which may cause difficulties when buying, selling or collecting income from these investments. In addition, such investments made via the Stock Connect system or traded on the China Interbank Bond Market, may be more susceptible to 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.

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.

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.

Other information

The Fund allows for the extensive use of derivatives.

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

Michael Bourke

Michael Bourke - Fund manager

Before joining M&G in 2015, Michael Bourke spent 10 years as an emerging markets equities analyst and portfolio manager for Legg Mason and FPP Asset Management, after having worked at Deutsche Bank in roles related to equity derivatives trading. At M&G, he has worked as a fund manager and co-manager for various emerging markets funds, domiciled in London and in Luxembourg, since 2017. Michael has a BSc in Computer Science and Accounting from the University of Manchester and an MSc in International Banking and Finance from Heriot-Watt University.

 Team member biography
Charles de Quinsona

Charles De Quinsonas - Co-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

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