A green bond is one whose proceeds are directed exclusively to financing projects that have a positive environmental impact. However there is still no one widely accepted definition of what constitutes green.
INVESTMENT CAPABILITIES
Emerging Markets Debt Local Currency
This strategy invests in local currency treasury and government-related emerging market bonds. Portfolios may be opportunistically allocated to emerging market corporate credit and hard currency (USD denominated) issues. The strategy is typically benchmarked to the JPMorgan Global Bond Index – Emerging Markets Global Diversified.
Why Mondrian for Emerging Markets Debt?
Some of the longest track records in the industry – also, some of the strongest
- Financially robust, employee-owned firm – longterm continuity and stability
- Stable, well-resourced team with expert knowledge of the asset class
- Disciplined process that has been shown to work over a long period
- Not reliant on “star managers” with potentially unrepeatable calls
- Nimble – manageable AUM and focused team means we can continue to rapidly exploit opportunities
- Comprehensive ESG integration – sovereign and corporate investment process awarded A+ in the 2020 PRI assessment*
- Competitive management fees
*Please refer to www.unpri.org for the Principles for Responsible Investments (“PRI”) assessment methodology. Mondrian’s full Assessment Report and Transparency Report may be requested via the PRI Data Portal.
Performance
As of September 30, 2020
Annualized
Calendar Year
Mondrian Emerging Markets Debt Local Currency Composite (USD)
Inception date January 1, 2006
Source: Mondrian Investment Partners/JPMorgan
Past performance is not a guide to future performance. The value of investments and income from then can fall as well as rise and investors may not get back the original amount invested. Performance results marked “Gross” do not reflect deduction of investment advisory fees but are net of transaction costs and withholding tax. Investment returns will be reduced accordingly. Performance returns marked “Net” reflect deduction of investment advisory fees and are calculated by deducting a quarterly indicative fee from the quarterly composite return. Please see important information below.
Periods over 12 months are annualized.
Portfolio
As of September 30, 2020
Characteristics
Top Active Bond Positions
Top Active Currency Positions
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| Information Ratio (3 years) |
Mondrian Investment Partners/Â JPMorgan
Click here for important additional disclosure details of this composite.
This introductory material is for informational purposes only and is not an offer or solicitation with respect to any securities. Any offer of securities can only be made by written offering materials, which are available solely upon request, on an exclusively private basis and only to qualified financially sophisticated investors residing in jurisdictions consistent with Mondrian’s regulatory authorizations. The information set forth herein is a summary only and does not set forth all of the risks associated with the investment strategy described herein. Â
This introductory material is for informational purposes only and is not an offer or solicitation with respect to any securities. Any offer of securities can only be made by written offering materials, which are available solely upon request, on an exclusively private basis and only to qualified financially sophisticated investors residing in jurisdictions consistent with Mondrian’s regulatory authorizations. The information set forth herein is a summary only and does not set forth all of the risks associated with the investment strategy described herein. Â
Views expressed were current as of the date indicated, are subject to change, and may not reflect current views. Views should not be considered a recommendation to buy, hold or sell any security and should not be relied on as research or investment advice.
These materials may include forward-looking statements. All statements other than statements of historical facts are forward-looking statements (including words such as “believe,” “estimate,” “anticipate,” “may,” “will,” “should,” “expect”). Although we believe that the expectations reflected in such forward-looking statements are reasonable, we can give no assurance that such expectations will prove to be correct. Various factors could cause actual results or performance to differ materially from those reflected in such forward-looking statements.
Calculations for P/E, P/B, dividend yield, sector country allocations, market caps, yield to maturity, modified duration, average maturity, average quality and country allocations are based on generally accepted industry standards. All characteristics are based on a representative account and derived by first calculating the characteristics for each security, and then calculating the weighted average of these values. The details of exact calculations can be provided upon request. All characteristic data provided is produced using Mondrian’s accounting system data.
There can be no assurance that the investment objectives of the strategy will be achieved.
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Information has been obtained from sources believed to be reliable but J.P. Morgan does not warrant its completeness or accuracy. The Index is used with permission. The Index may not be copied, used or distributed without J.P. Morgan’s prior written approval. Copyright, J.P. Morgan Chase & Co. All rights reserved.
News and Insights
Halfway through 2020, the world remains in the grip of a global pandemic, an economic shock of unprecedented scope and …
Managed appropriately, high quality global developed market fixed income offers investors enhanced yield, downside protection and diversification beyond their home market.
Mondrian’s CEO/Group CIO, Clive Gillmore, was one of three featured presenters on P&I’s Managing Volatility Amid the Coronavirus webinar in early May. The panelists discussed the recent spike in the markets and economic volatility, what investors might expect for the long term and the implications of corporate bailouts for investors.
As featured recently in Fin daily, “Asset Managers Have Clashing Views On Coronavirus Severity: Webinar,” Clive Gillmore, Group CIO and CEO of Mondrian, provided insight and perspective on the international investment landscape and the coronavirus.
The US dollar is extremely overvalued and if history is any guide it is poised for a substantial multi-year fall. According to our Purchasing Power Parity (PPP) valuations, it is now overvalued against every major currency in the world.
Rather than use ESG in isolation as a screening tool, Mondrian believes it is better used as a risk factor which can be priced along with other credit risk factors and demand a higher return on capital to compensate us for additional ESG risk.
As a value manager, Mondrian Investment Partners has always believed in conducting analysis that captures all potential material risks and opportunities; understanding and integrating the impacts of ESG factors has therefore consistently been part of our investment process.
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Policy Statements
© 2020 Mondrian Investment Partners Limited is authorised and regulated by the Financial Conduct Authority – Firm Reference Number 149507.
All information is as of September 30, 2020 unless otherwise noted.