M&G (Lux) Episode Macro Fund

ISIN
LU1670713921

Price (20.08.2019)
13.47

% Price Change
-0.45

Objective and investment policy

Objective

The fund aims to provide a combination of capital growth and income of 4-8% above the 3-month LIBOR, over any five-year period. LIBOR is the rate at which banks borrow money from each other.

Investment policy and strategy

Core investment: The fund typically invests via derivatives in a mix of assets, including company shares, bonds, currencies, cash and assets that can be turned quickly into cash. The fund may also invest in assets directly. The fund is fully flexible and has no investment limits or ranges in any particular asset class.

The fund may invest in China A-Shares and in Chinese bonds denominated in Renminbi.

Other investment: The fund may invest in asset-backed securities, convertibles, contingent convertible debt securities, other funds and property-related securities.

Derivatives: The fund invests via derivatives and may use derivatives with the aim of reducing the risks and costs of managing the fund.

Strategy in brief: The fund has a highly 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 investment 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.

Performance comparator: The fund is actively managed. The 3-month LIBOR plus 4-8% is a point of reference against which the performance of the fund is 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.

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 may be highly concentrated at times in a limited number of investments or areas of the market, which could result in large price rises and falls.

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

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 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 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 Equities Investment 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 30 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.

 View profile
Eric Lonergan

Eric Lonergan - Co-manager

Eric Lonergan joined M&G in 2006 as a member of its Multi Asset team. Together with Dave Fishwick, he manages the M&G (Lux) Episode Macro Fund and is also co-manager of the M&G Episode Growth Fund (a UK-authorised OEIC), as well as co-deputy manager of the M&G (Lux) 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.

 View profile
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.

 View profile
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.

 View profile
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.

 View profile

Need further information?


Viewing this website in 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, not for onward distribution to any other person or entity.

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.