Objective
The fund aims to provide a combination of capital growth and income, net of the Ongoing Charge Figure, that is higher than the MSCI ACWI Index over any five-year period.
Investment policy and strategy
Core investment: At least 80% of the fund is invested in the shares of companies from anywhere in the world (including emerging markets), across any sector and of any size.
Other investments: The fund may also invest in other funds (including funds managed by M&G), cash or assets that can be turned into cash quickly.
Use of derivatives: Derivatives may be used for investment purposes or to reduce risks or costs.
Strategy in brief: The fund employs a disciplined approach to analyse and select each company. The ‘recovery’ strategy invests in companies that have experienced difficulties but have the potential to deliver returns for shareholders through their turnaround over the long term. The approach focuses on three key factors: people, strategy and cashflow. Developing a constructive dialogue with company management is fundamental to the investment process. The fund manager takes a long-term view with a typical holding period of five years or more.
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.
Changes in currency exchange rates will affect the value of your investment.
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 invests mainly in company shares and is therefore likely to experience larger price fluctuations than funds that invest in bonds and/or cash.