M&G (Lux) Global Emerging Markets Fund

Objective and investment policy

Objective

The fund aims to provide a combination of capital growth and income to deliver a return that is higher than that of the global emerging markets stockmarket over any five-year period.

Investment policy and strategy

Core investment: At least 80% of the fund is invested in the shares of companies domiciled, or conducting the major part of their economic activity, in emerging market countries*. The fund may invest in China A-Shares via the Shanghai-Hong Kong Stock Connect and the Shenzhen-Hong Kong Stock Connect.

Other investment: The fund also holds cash or assets that can be turned quickly into cash.

* Emerging market countries are defined as those included within the MSCI Emerging Markets Index and/or those included in the World Bank’s definition of developing economies, as updated from time to time.

Strategy in brief: The investment manager invests in the shares of companies whose long-term prospects are considered to be undervalued. Stock selection is driven by in-depth analysis of individual companies, with a specific focus on their level of profitability, their corporate governance practices and the valuation of the shares. The investment manager selects stocks with distinct profitability profiles to build a fund that has the potential to cope in a variety of market conditions.

Performance comparator: The fund is actively managed. The MSCI Emerging Markets Index is a point of reference against which the performance of the fund may be measured.

Risks associated with the fund

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.

Investing in emerging markets involves a greater risk of loss due to greater political, tax, economic, foreign exchange, liquidity and regulatory risks, among other factors. There may be difficulties in buying, selling, safekeeping or valuing investments in such countries.

The fund can be exposed to different currencies. Movements in currency exchange rates may adversely affect the value of your investment.

The fund may invest in China A shares. Investments in assets from the People's Republic of China are subject to changeable political, regulatory and economic conditions, which may cause difficulties when selling or collecting income from these investments. In addition, such investment is made via the 'Stock Connects' systems, which may be more susceptible to clearing, settlement and counterparty risk. These factors could cause the fund to incur a loss.

The hedging process seeks to minimise, but cannot eliminate, the effect of movements in exchange rates on the performance of the hedged share class. Hedging also limits the ability to gain from favourable movements in exchange rates.

In exceptional circumstances where assets cannot be fairly valued, or have to be sold at a large discount to raise cash, we may temporarily suspend the fund in the best interest of all investors.

The fund could lose money if a counterparty with which it does business becomes unwilling or unable to repay money owed to the fund.

Further details of the risks that apply to the fund can be found in the fund's Prospectus.

Other information

The fund invests mainly in company shares and is therefore likely to experience larger price fluctuations than funds that invest in bonds and/or cash.

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

Michael Bourke

Michael Bourke - Fund manager

Michael Bourke was appointed fund manager of the M&G Global Emerging Markets Fund in October 2018. He joined M&G in 2015 and has managed the M&G (Lux) Emerging Markets Income Opportunities Fund since its launch in May 2017. Before this, Michael spent 10 years as an emerging markets equities analyst and portfolio manager for Legg Mason and FPP Asset Management. He previously worked at Deutsche Bank in roles related to equity derivatives trading. Michael has a BSc in Computer Science and Accounting from the University of Manchester and an MSc in International Banking and Finance from Heriot-Watt University.

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Alastair Bruce - Deputy Manager

Alastair Bruce was appointed fund manager of the M&G Asian Fund in September 2018. He joined M&G as a graduate in 2011 and has been a member of the Emerging Markets Equities team since 2015. He was appointed co-deputy fund manager of the M&G Global Emerging Markets Fund in December 2017. Alastair graduated with a BSc in Economics from the University of Bath and is a CFA charterholder.

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Alice Charmoy

Alice de Charmoy - Deputy Manager

Alice de Charmoy was appointed deputy fund manager of the M&G Asian Fund and the M&G Global Emerging Markets Fund in March 2015, having spent nearly two years as a dedicated analyst for the funds. She joined M&G in June 2013 from Comgest in Hong Kong, where she was an analyst focusing on Asian companies. Prior to that, Alice worked for Amiral Gestion as a global equities analyst. She graduated in 2005 from Université Paris Dauphine with a Masters degree in banking and finance. Alice is also a CFA charterholder.

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Robert Secker

Robert Secker - Investment specialist

Robert Secker joined M&G in 2010 as an investment specialist covering both the multi-asset funds and the UK income funds before joining the Emerging Markets team in January 2011. He previously worked for T Rowe Price for 10 years, most recently as an investment specialist, focusing on emerging market equities. He graduated from Portsmouth University with a BA (Honours) in financial services. Robert is a CFA charterholder.

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Ratings

Rating is at a share class level

3 Star Rating

Ratings as at 31/01/2019. The Morningstar Overall Rating. Copyright © 2019 Morningstar UK Limited. All Rights Reserved. The Morningstar Analyst Rating™. © 2019 Morningstar. All Rights Reserved. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Ratings should not be taken as recommendation.

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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.