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.
US MUTUAL FUNDS
International Government Fixed Income Fund
The Fund invests in international markets that offer high income in real (inflation-adjusted) terms, measured by a market’s Prospective Real Yield (PRY). We define PRY as the 10 year government bond yield minus Mondrian’s inflation forecast.
Fund Objective
The investment objective of the Fund is to seek long-term total return consistent with its value-oriented investment approach.
Fund Overview
Ticker
Net Expense Ratio*
Gross Expense Ratio
Sales Charge
Inception Date
MPIFX
0.60%
1.02%
None
11/02/2007
Benchmark
Minimum Initial Investment
Minimum Subsequent Investment
CUSIP
FTSE non-US WGBI Index
$50,000
$100
36381Y306
Effective March 1, 2019, The Fund changed the ticker to MPIFX (formerly LIFNX) and the minimum initial investment to $50,000 (formerly $1 million).
The Fund was previously the Laudus Mondrian International Government Fixed Income Fund and was reorganized into the Mondrian International Government Fixed Income Fund effective September 24, 2018. The Fund continues to be managed in the same way.
*Effective September 24, 2018, Mondrian Investment Partners Limited (the “Advisor”) has contractually agreed to waive fees and reimburse expenses to the extent necessary to keep Total Annual Fund Operating Expenses (excluding interest, taxes, brokerage commissions, acquired fund fees and expenses and non-routine expenses from exceeding 0.60% of the Fund’s average daily net assets until February 28, 2021.
The FTSE non-US Dollar World Government Bond Index A market capitalization index that measures the total rate of return performance for the government bonds of 22 countries, excluding the U.S., with a remaining maturity of at least 1 year.
Management Team
CIO Global Fixed Income and Currency
Years with Mondrian: 18
Years with Industry: 27
Mr. Wakefield joined Mondrian in 2001. He took both a BSc and an MSc in Economics from the University of Warwick. Prior to joining Mondrian, Mr. Wakefield was an economic adviser to the Monetary Policy Committee of the Bank of England, and formerly an economic adviser to the UK Treasury Department, specializing in inflation forecasting in both positions. At Mondrian, he is the team’s Chief Investment Officer and chairs the Global Fixed Income and Currency Committee meetings, where he utilizes his extensive inflation forecasting experience. Mr. Wakefield is a CFA Charterholder and is a member of the CFA Institute.
Senior Portfolio Manager
Years with Mondrian: 12
Years with Industry: 18
Mr. Day joined the Mondrian Global Fixed Income & Currency Team in 2007. Prior to this, Mr. Day worked in actuarial consulting, specializing in the development of stochastic asset and liability models for UK pension schemes at Buck Consultants. At Mondrian, Mr. Day has a quantitative research focus and is responsible for the continuing development of the company’s proprietary inflation and mortgage backed securities models. Mr. Day has a BSc in Economics with Actuarial Studies from the University of Southampton and is a Fellow of the Institute of Actuaries.
Performance
As of September 30, 2020
Annualized
Calendar Year
Mondrian International Government Fixed Income Fund (USD)
Returns are annualized for periods over 1 year.
Fund Inception November 2nd, 2007.
The performance data quoted represents past performance. Past performance is no guarantee of future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost and current performance may be lower or higher than performance quoted. For performance data current to the most recent month end, please call 888-832-4386. NAV returns since inception of November 2nd, 2007 when the Fund was the Laudus Mondrian International Government Fixed Income Fund. The Fund was reorganized into the Mondrian International Government Fixed Income Fund on September 24, 2018. It continues to be managed in the same way.
Mondrian Investment Partners Limited (the “Advisor”) has contractually agreed to waive fees and reimburse expenses to the extent necessary to keep Total Annual Fund Operating Expenses (excluding interest, taxes, brokerage commissions, acquired fund fees and expenses and non-routine expenses from exceeding 0.60% of the Fund’s average daily net assets until February 28th, 2021.
Portfolio
As of September 30, 2020
Characteristics
Top Active Bond Positions
Top Active Currency Positions
Credit Rating Distribution
| Characteristic | ||
|---|---|---|
| Modified Duration (years) | ||
| Portfolio Turnover (1-Year Trailing) | ||
| Average Maturity (years) | ||
| Number of Issues |
The Portfolio Turnover rate is a measure of the Fund’s trading activity which represents the portion of the Fund’s holdings that has changed over a year. There is no assurance that the Fund will maintain its current level of turnover.
The Weighted Average Maturity (WAM) of a fund is dollar-weighted based upon the market value of a fund’s securities at the time of the calculation. Maturity of a bond will generally be determined using a portfolio security’s final maturity date (date on which the final principal payment of a bond is scheduled to be paid); however, for securitized products, such as mortgage-backed securities and certain other asset-backed securities, maturity will be determined on an average life basis (weighted average time to receipt of all principal payments) by the investment adviser. Because pre-payment rates of individual mortgage pools vary widely, the average life of a particular pool cannot be predicted precisely. For securities with embedded demand features, such as puts or calls, either the demand date or the final maturity date will be used depending on interest rates, yields and other market conditions.
The Average Duration is a measure of an individual bond’s sensitivity to interest rates, expressed in years. Calculations of duration generally take into account the bond’s yield, interest payments, maturity date and call features. Weighted Average Duration is a measure of the duration of all bonds in a fund’s portfolio, also expressed in years, based on the market value weighted average duration of each bond in the portfolio.
News and Insights
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.
Literature
Fund Literature
Regulatory Documents
This website is intended for persons in the United States only.
To determine if the Fund is an appropriate investment for you, carefully consider the Fund’s investment objectives, risk, and charges and expenses. This and other information can be found in the Fund’s full and summary prospectus which can be obtained by calling 888-832-4386 or by visiting www.mondrian.com/mutualfunds. Please read the prospectus carefully before investing.
Investing involves risk, including the possible loss of principal. International investments entail risks not ordinarily associated with U.S. investments including fluctuation in currency values, differences in accounting principles, or economic or political instability in other nations. Emerging markets involve heightened risks related to the same factors, as well as increased volatility and lower trading volume. In addition to the normal risks associated with investing, investments in smaller companies typically exhibit higher volatility. Concentration in infrastructure-related securities involves sector risk and concentration risk, particularly greater exposure to adverse economic, regulatory, political, legal, liquidity, and tax risks associated with MLPs and REITs. The Fund may invest in derivatives, which are often more volatile than other investments and may magnify the Fund’s gains or losses.
The Mondrian Investment Partners Limited Funds are distributed by SEI Investments Distribution Co. (SIDCO). SIDCO is not affiliated with the advisor, Mondrian Investment Partners Limited.
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The FTSE non-US Dollar World Government Bond Index A market capitalization index that measures the total rate of return performance for the government bonds of 22 countries, excluding the U.S., with a remaining maturity of at least 1 year.
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.
