Changes are being made through the addition of the M&G Emerging Markets Bond fund to active portfolios, and the Legal & General Emerging Markets Government Bond Index.

MKC Invest, the investment arm of MKC Wealth, has cut its holdings in UK gilts and increased its weighting in emerging market debt across its portfolios.

The group is introducing the M&G Emerging Markets Bond fund, managed by Citywire + rated Charles de Quinsonas and Nick Smallwood, to active portfolios, and the Legal & General Emerging Markets Government Bond Index fund to its Tactical Passive portfolios.

Rick Eling, managing director of MKC Invest, said: ‘In M&G, we believe we’ve identified the active leaders in this space from among the whole market.’

Over the past three years, the M&G Emerging Markets Bond fund has returned 29.7%, placing it 34th out of 80 funds in Citywire’s Bonds – Emerging Markets Global Hard Currency sector.

The shift into emerging market debt has come as MKC Invest has reduced its holdings in UK gilts, which have continued to see a sell-off since the Iran war began at the end of February.

Today the yield on thirty-year gilts rose to 5.79%, its highest level since 1998, according to the Financial Times.

‘Emerging market debt now offers a combination of yield, diversification and improving fundamentals that warrants inclusion, while UK-specific risks justify a more cautious stance in the near term,’ Eling said.

By Madeleine Anderson | Citywire
5th May 2026

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