Our dynamic approach
We aim to help clients achieve optimal asset allocation throughout the market cycle using a dynamic approach that leverages our broad in-house investment research capabilities and deep macroeconomic expertise.
By applying behavioural finance theory to respond to market ‘episodes’ – periods when asset prices are overly influenced by investors’ emotional behaviour rather than long-term fundamental drivers of returns – means we can deliver a variety of solutions centred on diversified growth, income, capital preservation and sustainability.
Source: M&G, 30 June 2024. Investment professionals includes investment teams, fund managers’ assistants, investment specialists and a director of investment strategy.
Our multi asset solutions
Highly flexible and tactical asset allocation strategies for capital growth
- M&G Episode Macro
- M&G Dynamic Allocation
- M&G Episode Allocation
The most flexible strategy in our multi asset range, this growth-focused and highly nimble portfolio allocates capital across a wide range of liquid markets from around in the hope of generating positive returns through market cycles.
With a high degree of flexibility to invest across asset classes, regions and currencies, and the ability to take short positions, the strategy can exploit a wide range of opportunities. Exposure is normally gained via derivatives while applying responsible portfolio risk management.
This multi-asset approach dynamically responds to shifting price relationships between assets, while maintaining a forward-looking view of diversification at all times.
This unconstrained investment approach seeks to exploit tradable opportunities (or ‘Episodes’) that are created by behavioural-driven price action and market dislocations.
The investment team use a disciplined, value-led approach that considers both income and capital growth opportunities with the aim of delivering attractive risk-adjusted returns over the medium term.
The portfolio managers have the freedom to take net-long or net-short positions across asset classes. As a result, the strategy, which can invest via derivatives, directly or through other vehicles, can be concentrated in a relatively low number of holdings that have the potential to create higher volatility in the short term.
This flexible asset allocation strategy is designed for clients looking for combined capital growth and income over the medium term.
Taking a value-led perspective, guided by a robust capital valuation framework, we build a diversified portfolio with the aim of delivering attractive returns through all market cycles.
This strategy aims to capitalise on short-term volatility by making swift and meaningful tactical asset allocation decisions. This agility exploits opportunities that appear when markets move rapidly to generate repeatable returns in a wide variety of market conditions.
Growing income and capital over market cycles using a flexible approach
M&G Episode Income
This strategy follows a total return approach to income generation with significant flexibility to invest across equities, bonds other asset classes globally, with the aim of delivering attractive total returns through market cycles.
M&G Episode Income strategy offers a diversified income from a broad range of liquid securities, primarily physical listed equities, government bonds and credit from both developed and emerging markets. It is designed to provide investors with flexible access to stable, monthly income distributions.
The highly experienced investment team search for the most attractive prospective returns across asset classes, as opposed to simply chasing the highest yields. We believe such an approach affords more flexibility to manage risk as particular asset classes become expensive or face potential headwinds.
Highly flexible strategies designed to protect capital in changing market environments
M&G Global Target Return
This absolute return strategy invests across liquid financial markets worldwide including listed equities, government bonds and credit, with a strong focus on minimising short-term drawdowns.
Capital preservation is at the core of our investment approach as this strategy is designed to mitigate the impact of market volatility for investors.
It has an emphasis on minimising annualised volatility and monthly drawdowns with a risk-managed, diversified approach.
The ability to take net long or short positions in any asset class provides the potential to perform well in a variety of market conditions.
Flexible and climate-aware portfolios accessing a diversified range of global assets.
M&G Climate Aware Multi Asset
By incorporating ESG criteria and climate-related considerations into its investment approach when selecting investments, this flexible multi-asset strategy aims to generate attractive total returns over the long term.
A climate aware strategy designed for investors seeking attractive long-term growth through dynamic asset allocation, invested across the breadth of liquid global financial markets, including listed equities, government bonds and credit.
We apply a framework of ESG criteria, including climate aware criteria, to assess the credentials of potential investments. At least 70% of the portfolio is made up of climate aware assets, with at least 20% invested in companies that provide goods or services that help decarbonise the global economy or invested in environmentally themed bonds that have specific purposes or pledges.
