The £502.9m M&G Global Convertibles fund has secured a AA/V5 rating from Standard & Poor’s (S&P).
The fund, which is managed by Léonard Vinville and invests primarily in global convertible assets, has been granted the rating in light of its “stable team and effective process”.
Vinville has managed the portfolio since its launch in July 2007 and has helmed M&G’s four-strong global convertibles team since 2002. He is supported by a credit analyst, an equity analyst and a quant analyst.
Commenting on the fund’s investment process, S&P notes that it is “strongly bottom-up”. The portfolio concentrates on stocks that have a strong chance of recovering because of internal rather than external factors, as well as focussing on bonds that have good likelihood of being re-rated.
“Positions are assessed more on fundamentals than technicals. The process starts with a screen to eliminate less-liquid issues,” the ratings agency explains.
“The team then considers the technical characteristics of each bond and carries out quant screening on the equity fundamentals before performing in-depth fundamental research on the remaining issues.”
Over the past three years, the fund has delivered returns of 22.2% compared with the 6.3% of its S&P peer-group median.
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