Global Government Bond Fund

Share Class :
 
ISIN: GB00BQV3LQ28
Global Government Bond Fund
ISIN: GB00BQV3LQ28
Share Class :

Global Government Bond Fund

SHARE CLASS :
ISIN: GB00BQV3LQ28
 

 
 
Investment Objective
The Fund aims to provide capital growth and income by outperforming, net of fees, the Bloomberg Global Aggregate Treasuries Total Return Index Value Hedged GBP over 3 years or more.
Investment Approach
The Fund seeks an attractive return relative to the benchmark by investing in government and agency securities, supranational securities, government guaranteed and agency guaranteed securities, local government bonds, repurchase and reverse repurchase agreements and cash equivalent securities. The Fund must be at least 90% hedged to GBP. The Fund employs an active approach by using quantitative and qualitative analysis to identify attractive investment opportunities within sector allocation and security selection. Derivative instruments such as futures, options, swaps and foreign currency forward exchange contracts may be used for a variety of purposes, including hedging, risk management, portfolio management, or to earn income and reduce costs.
 
 
Pricing & Performance

Past performance is not a reliable indicator of future results. Returns may increase or decrease as a result of currency fluctuations. All performance data is calculated NAV to NAV, net of fees, and does not take account of commissions and costs incurred on the issue and redemption of units. The sources for all performance and Index data is Morgan Stanley Investment Management. Please click here for additional performance disclosures and important information, which should be reviewed carefully.

As of 30-Nov-2024

As of 27-Dec-2024

As of 30-Nov-2024

As of 27-Dec-2024


     
Past performance is not a reliable indicator of future results.
 
 
 
Risk and Reward Profile As of 27-Nov-2024
 
 
Lower Risk
High Risk
Potentially
Lower Rewards
Potentially
Higher Rewards
 
The risk and reward category shown is based on historic data.
  • Historic figures are only a guide and may not be a reliable indicator of what may happen in the future.
  • As such this category may change in the future.
  • The higher the category, the greater the potential reward, but also the greater the risk of losing the investment. Category 1 does not indicate a risk-free investment.
  • The Fund is in this category because it invests in fixed interest securities and the Fund's simulated and/or realised return has experienced medium rises and falls historically.
  • The Fund may be impacted by movements in the exchange rates between the Fund's currency and the currencies of the Fund's investments.
This rating does not take into account other risk factors which should be considered before investing, these include:
  • The value of bonds are likely to decrease if interest rates rise and vice versa.
  • The value of financial derivative instruments can be complex and volatile, and may result in losses in excess of the amount invested by the Fund.
  • Issuers may not be able to repay their debts, if this happens the value of your investment will decrease. This risk is higher where the Fund invests in a bond with a lower credit rating.
  • The Fund relies on other parties to fulfill certain services, investments or transactions. If these parties become insolvent, it may expose the Fund to financial loss.
  • Sustainability factors can pose risks to investments, for example: impact asset values and increased operational costs.
  • There may be an insufficient number of buyers or sellers which may affect the Fund's ability to buy or sell securities.
  • Investments in China involves a risk of a total loss due to factors such as government action or inaction, market volatility and reliance on primary trading partners.
  • There are increased risks of investing in emerging markets as political, legal and operational systems may be less developed than in developed markets.
  • Past performance is not a reliable indicator of future results. Returns may increase or decrease as a result of currency fluctuations. The value of investments and the income from them can go down as well as up and investors may lose all or a substantial portion of his or her investment.
  • The value of the investments and the income from them will vary and there can be no assurance that the Fund will achieve its investment objectives.
  • Investments may be in a variety of currencies and therefore changes in rates of exchange between currencies may cause the value of investments to decrease or increase. Furthermore, the value of investments may be adversely affected by fluctuations in exchange rates between the investor’s reference currency and the base currency of the investments.
The risk and reward category shown is based on historic data.
  • Historic figures are only a guide and may not be a reliable indicator of what may happen in the future.
  • As such this category may change in the future.
  • The higher the category, the greater the potential reward, but also the greater the risk of losing the investment. Category 1 does not indicate a risk-free investment.
  • The Fund is in this category because it invests in fixed interest securities and the Fund's simulated and/or realised return has experienced medium rises and falls historically.
  • The Fund may be impacted by movements in the exchange rates between the Fund's currency and the currencies of the Fund's investments.
This rating does not take into account other risk factors which should be considered before investing, these include:
  • The value of bonds are likely to decrease if interest rates rise and vice versa.
  • The value of financial derivative instruments can be complex and volatile, and may result in losses in excess of the amount invested by the Fund.
  • Issuers may not be able to repay their debts, if this happens the value of your investment will decrease. This risk is higher where the Fund invests in a bond with a lower credit rating.
  • The Fund relies on other parties to fulfill certain services, investments or transactions. If these parties become insolvent, it may expose the Fund to financial loss.
  • Sustainability factors can pose risks to investments, for example: impact asset values and increased operational costs.
  • There may be an insufficient number of buyers or sellers which may affect the Fund's ability to buy or sell securities.
  • Investments in China involves a risk of a total loss due to factors such as government action or inaction, market volatility and reliance on primary trading partners.
  • There are increased risks of investing in emerging markets as political, legal and operational systems may be less developed than in developed markets.
  • Past performance is not a reliable indicator of future results. Returns may increase or decrease as a result of currency fluctuations. The value of investments and the income from them can go down as well as up and investors may lose all or a substantial portion of his or her investment.
  • The value of the investments and the income from them will vary and there can be no assurance that the Fund will achieve its investment objectives.
  • Investments may be in a variety of currencies and therefore changes in rates of exchange between currencies may cause the value of investments to decrease or increase. Furthermore, the value of investments may be adversely affected by fluctuations in exchange rates between the investor’s reference currency and the base currency of the investments.
 
 
 
 
Composition 4 As of 30-Nov-2024
Portfolio
Treasuries 83.54
Sovereign 1.09
Government Related 11.30
Interest Rate Swaps 0.02
Cash & Equivalents 4.05
  Fund
British Pound 99.59
Australian Dollar 1.75
Japanese Yen 0.77
Chinese Offshore Renminbi 0.46
US Dollar 0.35
South Korean Won 0.10
Colombian Peso 0.03
South Africa Rand 0.03
Czech Koruna 0.02
Danish Kroner 0.02
Other -3.10
  Fund
AAA 43.48
AA 16.64
A 27.98
BBB 7.09
BB 1.21
Not Rated 0.02
Cash 3.58
 
May not sum to 100% due to the exclusion of other assets and liabilities.


Geography4 As of 30-Nov-2024
  Fund
U.S. 32.27
Japan 9.42
China 7.27
United Kingdom 5.54
Spain 4.78
Supranational 4.23
Germany 4.08
New Zealand 2.99
Canada 2.71
Other 23.14
Cash 3.58
 
May not sum to 100% due to the exclusion of other assets and liabilities.


Holdings As of 30-Nov-2024
Fund
China (Peoples Republic of), 2.800000%, 2032-11-15 5.48
United States Treasury, 0.500000%, 2027-06-30 5.09
United States Treasury, 1.875000%, 2032-02-15 3.76
Spain Government Bond, 3.450000%, 2034-10-31 3.64
United States Treasury, 2.125000%, 2025-05-15 3.09
United States Treasury, 4.000000%, 2029-07-31 3.08
UNITED STATES OF 4% 02/34 3.04
United States Treasury, 1.875000%, 2026-06-30 2.48
United Kingdom (Government of), 3.500000%, 2025-10-22 2.40
United States Treasury, 0.625000%, 2030-05-15 2.37
Total 34.43

These securities and percentage allocations are only for illustrative purposes and do not constitute, and should not be construed as, investment advice or recommendations with respect to the securities or investments mentioned.



Portfolio Characteristics
Fund
Duration (years) 6.76
Average yield to maturity (%) 4.59
Number of holdings 130
 
 
Portfolio Managers
Michael Kushma
CIO, Broad Markets Fixed Income
37 years industry experience
Utkarsh Sharma
Executive Director
14 years industry experience
Anton Heese
Executive Director
23 years industry experience
Team members may be subject to change at any time without notice.
 
 
 
 

** Calendar Year Return (%) is available by selecting the fund name in the pricing table.

Please visit our Glossary page for fund related terms and definitions.

Performance data quoted is based on average annualized returns and net of fees.

The source for all performance and index data is Morgan Stanley Investment Management Limited.

Past performance is not indicative of future results. The value of the investments and the income from them can go down as well as up and an investor may not get back the amount invested. Returns may increase or decrease as a result of currency fluctuations. Performance data for funds with less than one year's track record is not shown. Performance is calculated net of fees. YTD performance data is not annualised. Performance of other share classes, when offered, may differ. Please consider the investment objectives, risks, charges and expenses of the fund carefully before investing. The prospectus and key investor information document (KIID) contains this and other information about the fund. Please read the prospectus and KIID carefully before you invest.

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1 The Morningstar Rating™ for funds, or "star rating", is calculated for managed products (including mutual funds, variable annuity and variable life subaccounts, exchange-traded funds, closed-end funds, and separate accounts) with at least a three-year history. Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a managed product's monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The top 10% of products in each product category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. The Overall Morningstar Rating for a managed product is derived from a weighted average of the performance figures associated with its three-, five-, and 10-year (if applicable) Morningstar Rating metrics. The weights are: 100% three-year rating for 36-59 months of total returns, 60% five-year rating/40% three-year rating for 60-119 months of total returns, and 50% 10-year rating/30% five-year rating/20% three-year rating for 120 or more months of total returns. While the 10-year overall star rating formula seems to give the most weight to the 10-year period, the most recent three-year period actually has the greatest impact because it is included in all three rating periods. Ratings do not take into account sales loads.

The Europe/Asia and South Africa category (EAA) includes funds domiciled in European markets, major cross-border Asian markets where material numbers of European UCITS funds are available (principally Hong Kong, Singapore and Taiwan), South Africa, and selected other Asian and African markets where Morningstar believes it is of benefit to investors for the funds to be included in the EAA classification system.

© 2024 Morningstar. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results.

2 The Bloomberg Global Aggregate Treasury Index is comprised of global government debt issued in local currencies. This multi-currency benchmark includes bonds from both developed and emerging markets issuers. The index is fully hedged to the GBP.

“Bloomberg®” and the Bloomberg Index/Indices used are service marks of Bloomberg Finance L.P. and its affiliates, and have been licensed for use for certain purposes by Morgan Stanley Investment Management (MSIM). Bloomberg is not affiliated with MSIM, does not approve, endorse, review, or recommend any product, and. does not guarantee the timeliness, accurateness, or completeness of any data or information relating to any product.

Entry Charge is a maximum possible figure. In some cases you might pay less, you can find this out from your financial adviser. Ongoing Charges reflect the payments and expenses incurred during the fund's operation and are deducted from the assets of the fund over the period. It includes fees paid for investment management (Management Fee), trustee/custodian, and administration charges. The Minimum Initial Investment/Minimum Subsequent Investment amounts may be in US Dollars (or the Euro or Sterling equivalent of the US Dollar amount). For more information please see the Charges and Expenses section of the prospectus.

4 May not sum to 100% due to rounding. Quality distribution data for securities is sourced from Fitch, Moody's and S&P. Where the credit ratings for individual securities differ between the three ratings agencies, the 'highest' rating is applied. The rating of credit default swaps is based on the 'highest' rating of the underlying reference bond. 'Cash' includes investments in short term instruments, including investments in Morgan Stanley liquidity funds. Cash & Equivalents are defined as the value of assets that can be converted into cash immediately. These include commercial paper, open FX transactions, Treasury bills and other short-term instruments.  Such instruments are considered cash equivalents because they are deemed liquid and not subject to significant risk of changes in values.

WAM is the weighted average maturity of the portfolio. The WAM calculation utilizes the interest-rate reset date, rather than a security's stated final maturity, for variable- and floating- rate securities. By looking to a portfolio's interest rate reset schedule in lieu of final maturity dates, the WAM measure effectively captures a fund's exposure to interest rate movements and the potential price impact resulting from interest rate movements.

 

WAL is the weighted average life of the portfolio. The WAL calculation utilizes a security's stated final maturity date or, when relevant, the date of the next demand feature when the fund may receive payment of principal and interest (such as a put feature). Accordingly, WAL reflects how a portfolio would react to deteriorating credit (widening spreads) or tightening liquidity conditions.

 

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