M&G (Lux) Global Listed Infrastructure Fund - Overview

04/01/2019

The M&G (Lux) Global Listed Infrastructure Fund has a total return (the combination of income and growth of capital) objective and aims to outperform the global equities market (as represented by the MSCI ACWI Index), net of the Ongoing Charges Figure, over any five-year period. It also aims to provide a rising income stream in US dollars by investing in infrastructure stocks which tend to exhibit characteristics of higher yield and lower volatility compared to global equities.

What is the Fund trying to achieve?

  • The fund is managed by Alex Araujo in M&G’s income team which embraces dividend growth as the foundation of its philosophy. The team manages €10 billion in global and regional strategies.
  • The fund invests in companies which own or control critical physical infrastructure – essential assets for the functioning of global society. The fund provides retail investors with access to assets generating attractive cashflows – cashflows which are not only stable but have the potential to grow over the long term.
  • An infrastructure fund with ESG integrated in the process, but not an ESG or impact fund – this is an important distinction. Coal-fired power and nuclear power are considered as hard exclusions for economic reasons.
  • A fund with geographic diversity, including emerging markets, and limited overlap with the M&G (Lux) Global Dividend Fund.
  • A fund designed to cope with the potential shocks of rising interest rate expectations and higher inflation.*

How is the Fund differentiated?

  • The fund provides access to a broader universe of infrastructure companies to better reflect the modern age and the increasingly digital world we live in. The fund invests beyond the traditional realm of utilities, energy and transport and diversifies into the social sphere (health, education and security) as well as the structural growth opportunities available in the evolving areas of infrastructure (communication, transactional and royalty).
  • Listed infrastructure indices are heavily skewed towards utilities and therefore provide limited diversification. This bias results in the performance of listed infrastructure indices mimicking the returns of bond proxies, which will not perform in all market conditions. There are no viable passive alternatives to M&G’s diversified approach.
  • M&G (Lux) Global Listed Infrastructure Fund benefits from the broader infrastructure expertise across M&G, including M&G Infracapital (private equity) and M&G’s infrastructure debt team.

How is the Fund different to the M&G (Lux) Global Dividend Fund?

  • The M&G (Lux) Global Listed Infrastructure Fund will typically offer a higher starting yield, while the M&G (Lux) Global Dividend Fund is expected to grow distributions more quickly over the long term.
  • M&G (Lux) Global Listed Infrastructure Fund is expected to show lower volatility than M&G (Lux) Global Dividend Fund and the MSCI ACWI Index as a function of the types of stocks it invests in.
  • M&G (Lux) Global Listed Infrastructure Fund has a specific focus on ESG given the nature of infrastructure assets which require closer examination of business sustainability and risk. 

* Inflation measured by the OECD G7 CPI.

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

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 Investment Funds (1) reg. no 390, M&G Investment Funds (2) reg. no 601, M&G Investment Funds (3) reg. no 391, M&G Investment Funds (5) reg. no 972, M&G Investment Funds (7) reg. no 541, M&G Investment Funds (9) reg. no 930, M&G Investment Funds (12) reg. no 1415, M&G Investment Funds (14) reg. no 1243, M&G Global Dividend Fund reg. no 713, M&G Global Macro Bond Fund reg. no 1056 and M&G Optimal Income Fund reg. no 522, 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 England and Wales in respect of M&G Investment Funds and in Luxembourg in respect of M&G (Lux) Investment Funds. In the Netherlands, all funds referred to, are UCITS and registered with the Dutch regulator, the AFM. 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 paper form, from M&G International Investments S.A. or one of the following - M&G International Investments 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 Bank Danmark A/S Issuer Services, Securities Services, Hermes Hus, Helgeshøj Allé 33, Postbox 850, DK-0900, Copenhagen C, Denmark; Allfunds Bank, Calle Estafeta, No 6 Complejo Plaza de la Fuente, La Moraleja, 28109, Alcobendas, Madrid, Spain; M&G International Investments S.A. French branch; from the French centralising agent of the Fund: RBC Investors Services Bank France; or from the Swedish paying agent: Nordea Bank AB (publ), Smålandsgatan 17, 105 71 Stockholm, Sweden. For Switzerland, please refer to 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 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. Before subscribing investors should read the Prospectus, which includes a description of the investment risks relating to these funds. The information contained herein is not a substitute for independent investment advice. This financial promotion is issued by M&G International Investments S.A. 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.

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The value of 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 and you may get back less than you originally invested.