Marketing communication. For Investment Professionals only
“We believe that a genuinely unconstrained multi-asset portfolio is the most efficient way to generate consistent investment returns across the market cycle.”
The M&G Multi Asset team believes that ﬁnancial markets often move irrationally because investors allow their emotions to aﬀect their decision-making. Using a robust valuation framework, they examine the economic environment to ﬁnd occasions – ‘episodes’ – where investor behaviour has moved asset prices away from their long-term fair value.
The fund has a highly flexible investment approach with the freedom to invest in different types of assets issued anywhere in the world and denominated in any currency. The fund will typically use derivatives to gain exposure to these assets. As well as the ability to take long and short positions, the fund managers can go negative duration. Asset allocation is expected to be the main driver of returns over time.
The fund aims to deliver a positive total return (the combination of income and capital growth) of 5-10% on average per year over any three-year period by investing globally in a range of assets, including equities, ﬁxed income and currencies. The fund managers expect the fund to have an annualised volatility of between 5% and 12%.
The fund will normally invest within the following net allocation ranges, which reﬂect the sum total of long and short positions.
|Net allocation range||Neutrality|
|Currency||Min. 30% in EUR, Min. 60% in EUR, GBP and USD combined|
*Excluding cash and cash equivalents.
**Mainly real estate-related securities, convertibles and infrastructure assets.
Neutrality is the positioning of the fund if all assets were trading at their ‘fair value’. This can be thought of as a strategic asset allocation. In an ideal world, when all assets were trading at their ‘fair value’, then neutrality would be how a fund was positioned, given its strategy and risk proﬁle. However, assets seldom trade at fair value, so the actual allocation of the fund may not match the neutral position.
The fund managers evaluate the macroeconomic environment and look for instances where investor emotion has moved asset classes away from what the managers assess to be their long-term ‘fair value’ or ‘neutrality’.
Source: Reﬁnitiv Datastream, 9 July 2022, for illustrative purposes only. The green columns show the expected return or real yield from each type of asset. The neutrality band is the level where the fund managers perceive the real yield to be a ‘fair’ reﬂection of the assets’ underlying value. *Real yield for equity is deﬁned as an inverted p/e ratio, using forward consensus data. The above data is a hypothetical representation for illustrative purposes only and is not representative of any M&G product or strategy. No representation is being made that any account, product, or strategy will or is likely to achieve proﬁts, losses, or results similar to those shown. This chart represents just the starting point for the team’s investment process and behavioural ﬁnance insights are crucial to its interpretation. M&G does not have house views.
|31 July 2022||€2.3024,43 million|
|Fund launch date||16 January 2018|
|Sector||Morningstar EUR Flexible Allocation – Global sector|
|EUR A share class|
|Initial charge||Max. 4,00%|
Source of fund facts: M&G as at 31.07.22.
*The fund is actively managed and has no benchmark. Investors can assess the performance of the fund by its objective to provide a combination of capital growth and income of 5-10% on average per year over any three-year period.
**The ongoing charge is based on expenses as at 31.03.22.
This is a marketing communication. Please refer to the prospectus and to the KIID before making any final investment decision.
The value and income from the fund’s assets will go down as well as up. This will cause the value of your investment to fall as well as rise. There is no guarantee that the fund will achieve its objective and you may get back less than you originally invested.
The fund may use derivatives to profit from an expected rise or fall in the value of an asset. Should the asset’s value vary in an unexpected way, the fund will incur a loss. The fund’s use of derivatives may be extensive and exceed the value of its assets (leverage). This has the effect of magnifying the size of losses and gains, resulting in greater fluctuations in the value of the fund.
The fund is exposed to diﬀerent currencies. Derivatives are used to minimise, but may not always eliminate, the impact of currency movements in currency exchange rates.
Further details of the risks that apply to the fund can be found in the fund's Prospectus.
The fund allows for the extensive use of derivatives.
Investing in this fund means acquiring units or shares in a fund, and not in a given underlying asset such as a building or shares of a company, as these are only the underlying assets owned by the fund.
For an explanation of the terms used in this document, please refer to the glossary on our website here
For Investment Professionals and Institutional Investors only. Not for onward distribution. No other persons should rely on any information contained within.
Distribution of this document in or from Switzerland is not permissible with the exception of the distribution to Qualified Investors according to the Swiss Collective Investment Schemes Act, the Swiss Collective Investment Schemes Ordinance and the respective Circular issued by the Swiss supervisory authority ("Qualified Investors"). Supplied for the use by the initial recipient (provided it is a Qualified Investor) only.
In Spain the M&G Investment Funds are registered for public distribution under Art. 15 of Act 35/2003 on Collective Investment Schemes as follows: M&G (Lux) Investment Funds 1 reg. no 1551.The collective investment schemes referred to in this document (the "Schemes") are open-ended investment companies with variable capital, incorporated in Luxembourg.
In the Netherlands, all funds referred to are UCITS and registered with the Dutch regulator, the AFM. M&G Luxembourg S.A. is the manager of the UCITS referred to in this document. Registered Office: 16, boulevard Royal, L‑2449, Luxembourg.
The Portuguese Securities Market Commission (Comissão do Mercado de Valores Mobiliários, the “CMVM”) has received a passporting notification under Directive 2009/65/EC of the European Parliament and of the Council and the Commission Regulation (EU) 584/2010 enabling the fund to be distributed to the public in Portugal.
This information is not an offer or solicitation of an offer for the purchase of investment shares in one of the funds referred to herein. Purchases of a fund should be based on the current Prospectus. The Instrument of Incorporation, Prospectus, Key Investor Information Document, annual or interim Investment Report and Financial Statements, are available free of charge, in English or your local language (unless specified below) in paper form, from one of the following – M&G Luxembourg S.A., German branch, mainBuilding, Taunusanlage 19, 60325 Frankfurt am Main; the Austrian paying agent: Société Générale Vienna Branch, Zweigniederlassung Wien Prinz Eugen-Strasse, 8-10/5/Top 11 A-1040 Wien, Austria; the Luxembourg paying agent: Société Générale Bank & Trust SA, Centre operational 28-32, place de la Gare L‑1616 Luxembourg; the Danish paying agent: Nordea Danmark, Filial af Nordea Bank Abp, Finland, Issuer Services, Postbox 850, Reg.no. 5528, DK-0900 Copenhagen C; Allfunds Bank, Calle Estafeta, No 6 Complejo Plaza de la Fuente, La Moraleja, 28109, Alcobendas, Madrid, Spain; M&G Luxembourg S.A. French branch, 8 rue Lamennais, Paris 75008; the French centralising agent of the fund: RBC Investors Services Bank France; or the Swedish paying agent: Nordea Bank AB (publ), Smålandsgatan 17, 105 71 Stockholm, Sweden. For Switzerland, please refer to by M&G International Investments Switzerland AG, Talstrasse 66, 8001 Zurich or Société Générale, Paris, Zurich Branch, Talacker 50, P.O. Box 5070, 8021 Zurich, which acts as the Swiss representative of the Schemes (the "Swiss Representative") and acts as their Swiss paying agent.
For Italy, they can also be obtained on the website: www.mandgitalia.it. For the Netherlands, they are available online at www.mandg.com/investments/nl and for more information concerning the Key Investor Information Document, please refer to www.afm.nl/ebi. For Ireland, they are available in English language and can also be obtained from the Irish facilities agent, Société Générale SA, Dublin Branch, 3rd Floor IFSC House – The IFSC Dublin 1, Ireland. For Germany and Austria, copies of the Instrument of incorporation, annual or interim Investment Report, Financial Statements and Prospectus are available in English and the Prospectus and Key Investor Information Document/s are available in German. For Greece, they are available in English, except the Key Investor Information Document/s which is available in Greek, from the Greek Representative: Eurobank Ergasias S.A. 8, Othonos Street, 10557 Athens.
Before subscribing investors should read the Prospectus and Key Investor Information Document, which includes a description of the investment risks relating to these funds. The value of the assets managed by the funds may greatly fluctuate as a result of the investment policy. The information contained herein is not a substitute for independent investment advice.
M&G Luxembourg S.A. may terminate arrangements for marketing under the new Cross-Border Distribution Directive denotification process.
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This financial promotion is issued by M&G Luxembourg S.A. Registered Office: 16, boulevard Royal, L‑2449, Luxembourg.