Episode Macro Fund

ISIN
GB00B5LHB564

Price (25.09.2018)
13.05

% Price Change
0.57

Objective and investment policy

Objective

The fund aims to provide a higher total return (the combination of income and capital growth) with smaller changes in returns on average, than company shares from around the world, over any three to five-year period. There is no guarantee that the fund will achieve a positive return over any period, and you may not get back the amount you originally invested.

Investment policy and strategy

Core investment: Typically, the fund will use derivatives to invest in a range of assets, including company shares, bonds and currencies. It is fully flexible and has no limits or ranges in any particular asset class. As a result of its use of derivatives, the fund may be required to hold a large amount of cash and bonds. The fund may also invest directly or through other funds. 

Using derivatives to invest also allows the fund to create ‘leverage’, meaning that the fund can gain exposure to investments that exceed its value, thus increasing potential returns (or losses) in both rising and falling markets. 

In addition, derivatives are used to reduce risk and costs and to manage the impact of changes in currency exchange rates on the fund’s investments. 

Other investments: The fund may also hold convertibles, cash, deposits, warrants and money market instruments (for example, debt due to be repaid within a year).

 

Strategy in brief: The fund has a very flexible investment approach, with the freedom to invest in different types of assets from anywhere in the world. The approach combines in-depth research to work out the ‘fair’ value of assets over the medium to long term, with analysis of market reactions to events to identify investment opportunities. In cases where the manager believes the opportunities are limited to a few areas, the fund may be very concentrated in certain assets or markets. Such strategies may result in greater changes in the fund’s short-term performance. 

Glossary terms 

Bonds: Loans to governments and companies that pay interest. 

Convertibles: Bonds issued by companies that usually pay a set rate of interest and which can be exchanged for predetermined amounts of company shares. 

Derivatives: Financial contracts whose value is derived from other assets. 

Warrants: Financial contracts which allow the fund manager to buy stocks for a fixed price until a certain date.

Risks associated with the fund

The value of investments and the income from them will rise and fall. This will cause the fund price, as well as any income paid by the fund, to fall as well as rise. There is no guarantee the fund will achieve its objective, and you may not get back the amount you originally invested.

The fund may use derivatives to gain exposure to investments exceeding the value of the fund (leverage). This may cause greater changes in the fund’s price and increase the risk of loss.

The fund may use derivatives with the aim of profiting from a rise or a fall in the value of an asset (for example, a company’s bonds). However, if the asset’s value varies in a different manner, the fund may incur a loss.

Changes in currency exchange rates will affect the value of your investment.

If the share class is hedged (H share class), it aims to mirror the performance of another share class. We cannot guarantee that the hedging objective will be achieved. The hedging strategy will limit holders of the hedged share class from benefiting if the hedged share class currency falls against the US dollar.

The fund will invest in emerging markets which are generally smaller, more sensitive to economic and political factors, and where investments are less easily bought and sold. In exceptional circumstances, the fund may encounter difficulties when selling or collecting income from these investments, which could cause the fund to incur a loss. In extreme circumstances, it could lead to the temporary suspension of dealing in shares in the fund.

Where market conditions make it hard to sell the fund’s investments at a fair price to meet customers’ sale requests, we may temporarily suspend dealing in the fund’s shares.

Some transactions the fund makes, such as placing cash on deposit, require the use of other financial institutions (for example, banks). If one of these institutions defaults on their obligations or becomes insolvent, the fund may incur a loss.

Other information

The fund may invest more than 35% in securities issued by any one or more of the governments listed in the fund prospectus.  Such exposure may be combined with the use of derivatives in pursuit of the fund objective.  It is currently envisaged that the fund’s exposure to such securities may exceed 35% in the governments of Australia, Austria, Belgium, Canada, Denmark, Finland, France, Germany, Italy, Japan, Netherlands, New Zealand, Singapore, Sweden, Switzerland, UK, USA although these may vary subject only to those listed in the prospectus.

The Fund allows for the extensive use of derivatives

The fund may be very concentrated at times which could result in greater fluctuations in the funds short-term performance.

 

Performance

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. The level of any income earned by the fund will fluctuate. Past performance is not a guide to future performance. The performance data does not take account of the commissions and costs incurred on the issue and redemption of units.


Source: Price: State Street. Performance: Morningstar. For non-Sterling share classes for fixed income and global convertibles funds, performance figures are shown on a price to price with gross income reinvested basis*. For equities and multi-asset funds, performance figures are shown on a price to price with net income reinvested basis. For Sterling share classes performance figures are on a price to price with net income reinvested basis. Performance figures may not reflect all relevant charges.

Please note that the Morningstar Category performance data in this tool where shown, is from the default Morningstar database, which contains all the share classes for each fund available across Europe, Asia and Africa. This can differ from the comparative sector data in M&G factsheets which is from the same database, but showing only the most appropriate share class to represent each fund, and for just those funds available in Europe. Neither Morningstar nor its Information Providers can guarantee the accuracy, completeness, timeliness, or correct sequencing of any of the Information on the Web site, including, but not limited to Information originated by Morningstar, licensed by Morningstar from Information Providers, or gathered by Morningstar from publicly available sources. There may be delays, omissions, or inaccuracies in the Information.

*M&G Optimal Income Fund Sterling share classes are gross income reinvested.

 

Fund Team

David Fishwick

David Fishwick - Fund manager

David Fishwick is Head of Macro and Multi Asset investing at M&G Investments and co-fund manager of the M&G Episode Macro Fund. He is also fund manager of the M&G Managed Growth Fund. Dave has more than 20 years of investment management experience, having joined Prudential Portfolio Managers (now M&G Investments) in 1987 as a European economist and subsequently being responsible for forming views on global bond and currency markets and applying them to multi-asset funds. In 1994, Dave relocated to Australia where he was appointed head of fixed interest and asset allocation strategy in 1997. During that time, he developed his ideas on market behaviour and designed the strategy, philosophy and process implemented for an overlay mandate for the Prudential Life Fund upon his return to Europe in 1999. In light of the success of this mandate, the M&G Episode Macro Fund was launched in 2010, which follows the same strategy. Dave has a BSc in economics from Brunel University, London.

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Eric Lonergan

Eric Lonergan - Co-manager

Eric Lonergan joined M&G in 2006 as a member of Dave Fishwick’s Multi Asset team. He is co-manager of the M&G Episode Macro Fund and the M&G Episode Growth Fund, and deputy manager of the M&G Global Target Return Fund. Prior to joining M&G, Eric was managing director and head of macro research at JP Morgan Cazenove. He has a BA in politics, philosophy and economics from Pembroke College, Oxford, and an MSc in economics from the London School of Economics.

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Susanne Grabinger

Susanne Grabinger - Investment specialist

Susanne Grabinger joined M&G in 2010 and is currently an investment specialist providing support for M&G's multi-asset fund range and the M&G Global Convertibles Fund. Prior to joining M&G, Susanne worked at JPMorgan Asset Management as a client portfolio manager, focusing on institutional equity accounts and balanced mutual funds. She holds a master’s degree in business administration from the University of Bamberg, Germany, and is a CFA charterholder. Susanne is fluent in German and English and is also proficient in French and Spanish.

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Ana Cuddeford

Ana Cuddeford - Investment specialist

Ana Cuddeford is the investment specialist covering M&G’s multi-asset fund range and the M&G Global Convertibles Fund. She initially joined M&G in December 2013 from FTSE Group, where she had helped execute their FTSE4 Good company engagement. Prior to that, Ana spent 16 years in equity sales, the last 11 of which were at financial group Citi. She is fluent in English, Spanish and Italian and has a good command of French. Ana graduated from the University of Wales, College of Cardiff with a BSc (Hons) in European community studies.

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Christophe Machu

Christophe Machu - Investment specialist

Christophe Machu joined the Multi Asset and Convertibles teams as an associate investment specialist providing support for M&G's multi-asset fund range and the M&G Global Convertibles Fund in September 2014. He initially joined M&G in 2012 as a sales support in Paris before moving into the International Marketing team in London. Christophe has an MSc in risk and finance from EDHEC Business School.

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Important information


The collective investment schemes referred to on this website (the "Schemes") are open-ended investment companies with variable capital, incorporated in England and Wales. Société Générale, Talacker 50, P.O. Box 5070, 8021 Zurich, acts as the Swiss representative of the Schemes (the "Swiss Representative") and the paying agent. The Prospectuses, the Key Investor Information Documents (KIIDs), the Instruments as well as the annual and semi-annual reports of the Schemes can be obtained free of charge from the Swiss Representative.

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The collective investment schemes referred to on this website (the "Schemes") are open-ended investment companies with variable capital, incorporated in England and Wales. Société Générale Fund Services S.A., 11, rue du Général-Dufour, 1204 Geneva acts as the Swiss representative of the Schemes (the "Swiss Representative") and JPMorgan Chase Bank, National Association, Columbus, Zurich Branch acts as their Swiss paying agent. The Prospectuses, the Key Investor Information Documents (KIIDs), the Instruments as well as the annual and semi-annual reports of the Schemes can be obtained free of charge from the Swiss Representative in Geneva.