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
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.
Growing income and capital over market cycles using a flexible approach
Growing income and capital over market cycles using a flexible approach
M&G Episode Allocation
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 Allocation 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 sustainability-focused portfolios accessing a diversified range of global assets
M&G Sustainable allocation
By incorporating ESG and positive impact considerations in our approach to selecting investments, this flexible multi-asset strategy aims to generate sustainably achieved and attractive total returns over the long term.
This strategy is designed for investors seeking to target both sustainably generated long-term returns and the flexibility of dynamic asset allocation, invested across the breadth of liquid global financial markets including listed equities, government bonds and credit.
We employ a best-in-class framework for screening potential investments for their ESG qualities and credentials. Additionally, the strategy allocates a minimum of 20% of its holdings to companies and institutions dedicated to delivering a positive impact to meeting the world’s societal and environmental challenges.
