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This website is operated by M&G Securities Limited and M&G Investment Management Limited. Please refer to the Terms and Legal Conditions of this website for further information.

The services and products provided by M&G Investment Management Limited are available only to investors who come within the category of Professional Client as defined in the Financial Conduct Authority’s Handbook. They are not available to Retail Clients, who should not rely on the information contained in this website.

Please read this page before proceeding, as it explains certain restrictions imposed by law on the distribution of this information and the countries in which our funds are authorised for sale.

The funds contained on this site may not be registered for sale or distribution in your jurisdiction. It is your responsibility to be aware of the applicable laws and regulations of your country of residence. This information is not for use within any country or jurisdiction where said use would constitute a violation of law.

The following pages do not constitute an offer or solicitation to sell shares in any of the funds referred to on this site, by anyone in any jurisdiction in which such offer, solicitation or distribution would be unlawful or in which the person making such offer or solicitation is not qualified to do so or to anyone to whom it is unlawful to make such offer or solicitation.

Past performance is not a guide to future performance. Prices of investments may fluctuate and you may not get back your original investment.  You should ensure you understand the risk profile of the products or services you plan to purchase.

This website is not intended for use by any person in the United States. Shares in M&G Funds have not been and will not be registered under the United States Securities Act of 1933, as amended, or registered or qualified under the securities laws of any state of the United States and may not be offered, sold, transferred or delivered, directly or indirectly, to any investors within the United States or to, or for the account of, US Persons except in certain limited circumstances pursuant to a transaction exempt from such registration or qualification requirements. None of the shares have been approved or disapproved by the US Securities and Exchange Commission, any state securities commission in the United States or any other US regulatory authority, nor have any of the foregoing authorities passed upon or endorsed the merits of the offering of the shares or the accuracy or adequacy of the Prospectus. The Funds will not be registered under the United States Investment Company Act of 1940, as amended.

The views expressed within this website do not necessarily reflect the views of the M&G Group as a whole or any part thereof.

M&G companies do not offer investment advice or make any recommendations regarding investments. We only promote products and services of M&G Securities Limited and M&G Investment Management Limited. 
Companies within the M&G Group which do not carry out investment business in the UK are not subject to the provisions of the UK Financial Services and Markets Act 2000. Accordingly, investors entering into investment agreements with such companies will not have the protection afforded by that Act or the rules and regulations made under it, including the UK's Financial Services Compensation Scheme.

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How rating agencies work

In the financial industry, there are several ratings agencies that provide ratings for funds and fund managers. These ratings help potential investors to decide which funds and fund managers are performing well, and to choose which suit their long-term investment objectives.

In the documentation produced by M&G, we mainly refer to Morningstar and S&P Capital IQ ratings.

Morningstar fund ratings

These ratings are based on Morningstar risk-adjusted returns. The fund’s performance is rated over three, five and ten years and given an overall rating based on a weighted average of the available time-period ratings. We typically refer to this rating in our Fund literature.

Morningstar will not rate a fund if:

  • The fund is less than three years old
  • There are insufficient similar funds within the category for a meaningful ranking
  • There is incomplete information about the fund
  • A major asset allocation change skews the fund’s performance history

All funds that can be rated will be awarded up to five stars on a monthly basis. These measurements are applied within each Morningstar category:

  • Five stars are awarded to the top performing 10%
  • Four stars are awarded to the next 22.5%
  • Three stars are awarded to the middle 35%
  • Two stars are awarded to the next 22.5%
  • One star is awarded to the bottom 10%

Source: Morningstar, May 2011

S&P Capital IQ fund gradings

S&P Capital IQ uses a fund research grading system covering approximately the top 20% of funds within each sector. You can use these gradings to identify the highest-quality funds.

S&P Capital IQ gradings are based on an analysis of factors that contribute to long-term performance:

  • Platinum (formerly AAA) for a fund that "demonstrates the highest standards of quality based on its investment process and management’s consistency of performance as compared to funds with similar objectives."
  • Gold (formerly AA) is given to a fund that "demonstrates very high standards of quality based on its investment process and management’s consistency of performance as compared to funds with similar objectives."
  • Silver (formerly A) is given to a fund that "demonstrates high standards of quality based on its investment process and management’s consistency of performance as compared to funds with similar objectives."
  • Bronze A previously graded fund where a newly appointed fund manager or team does not yet have the required 12 months’ relevant investment management experience to achieve a Silver grading or higher.*

Source: S&P Capital IQ, June 2012

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For investment professionals only. Not for onward distribution to any other type of client. No other persons should rely on the information contained on this website. The value of investments will fluctuate, which will cause fund prices to fall as well as rise and you may not get back the original amount you invested.