M&G Investments

M&G (Lux) Conservative Allocation Fund

Share Class

ISIN
LU1582983091

Price (19.07.2019)
9.55

% Price Change
0.31

Objective and investment policy

Objective

The fund aims to provide a positive total return (combined income and capital growth) of 3-6% on average per year over any three-year period by investing in a mix of assets from anywhere in the world.

Investment policy and strategy

Core investment: The fund will typically invest within the following net allocation ranges:

• 0-100% in bonds

• 0-35% in company shares

• 0-20% in other assets (including convertibles and property-related securities)

The fund typically invests in the above assets via derivatives. The fund may also invest in assets directly or through other funds. The ranges shown above are on a net basis, that is, ‘long’ positions (investments that profit from a rise in asset prices) net of ‘short’ positions (investments held via derivatives that profit from a fall in asset prices). 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 investment: The fund may also invest in currencies and hold cash, deposits and warrants.

Strategy in brief: The fund is managed with a highly flexible investment approach. The investment manager has the freedom to allocate capital between different types of assets in response to changes in economic conditions and asset prices. The approach combines in-depth research to work out the ‘fair’ value of assets over the medium to long term, with analysis of the market’s short-term reactions to events, to identify investment opportunities. The fund seeks to manage risk by investing globally across multiple asset classes, sectors, currencies and countries. Where the investment manager believes opportunities are limited to a few areas, the portfolio may be very concentrated in certain assets or markets. The investment manager will normally seek to hold at least 60% of the fund in euros.

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 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 may lose as much as or more than the amount invested.

Investments in bonds are affected by interest rates, inflation and credit ratings. It is possible that bond issuers will not pay interest or return the capital. All of these events can reduce the value of bonds held by the fund.

The fund is exposed to different currencies. Derivatives are used to minimise, but may not always eliminate, the impact of movements in currency exchange rates.

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 informaton

The Fund allows for the extensive use of derivatives.

Performance

Past performance prior to 16 January 2018 is that of the M&G Prudent Allocation Fund (a UK-authorised OEIC) which merged into this fund on 16 March 2018. Tax rates and charges may differ.

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.

Source: Price: State Street. Performance: Morningstar. Performance figures are on a price to price basis with income reinvested. 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.

Fund Team

Juan Nevado - Fund manager

Juan Nevado joined PPM (now M&G) in 1988 and has been working as part of the Multi Asset team led by Dave Fishwick since 1999. He is co-fund manager of the M&G (Lux) Conservative Allocation Fund and the M&G (Lux) Dynamic Allocation Fund (and held the same positions on the UK-authorised UCITS which merged into these funds on 16 March 2018). Since January 2011 he has been co-fund manager of the M&G Episode Allocation Fund, a UK-authorised UCITS. Prior to joining M&G, Juan worked as a bond economist at the Bank of Montreal, and before that, as an economist for the Commodities Research Unit, a private business consultancy specialising in macro/micro research on commodities markets. Juan has a BSc in economics from the LSE and an MA in economics from Warwick University.

Team member biography

Craig Moran - Co-manager

Craig Moran is co-fund manager of the M&G (Lux) Conservative Allocation Fund and M&G (Lux) Dynamic Allocation Fund. He is also deputy fund manager of the M&G Episode Allocation Fund, M&G Managed Growth Fund and M&G Episode Growth Fund, all three UK-authorised OEICs. Craig joined M&G in 2005 as a performance and risk analyst, and was later promoted to a fund managers’ assistant to the Multi Asset team. In 2010, he became the team’s investment analyst. Craig holds a bachelor of business degree from Queensland University of Technology and a masters in applied finance and investments from the Financial Services Institute of Australasia. He is a CFA charterholder.

Team member biography

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.

Team member biography

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.

Team member biography

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.

Team member biography

Graziano Creperio - Investment specialist

Graziano Creperio is Investment director for M&G’s Multi Asset fund range. Graziano joined M&G in 2012 as a Fund Data Analyst before moving to the Multi Asset team as an Associate Investment Specialist providing support for the M&G multi-asset funds. Prior to joining M&G, Graziano worked as a portfolio data analyst at Morningstar. He holds a MSc in management and a BA in economics from Bocconi University in Milan. He also studied at Babson College in Boston and at Jiao Tong University in Shanghai.

Team member biography

Ratings

Rating is at a share class level

Past performance prior to 16 January 2018 is that of the M&G Prudent Allocation Fund (a UK-authorised OEIC) which merged into this fund on 16 March 2018. Tax rates and charges may differ.

Source: Price: State Street. Performance: Morningstar. Performance figures are on a price to price basis with income reinvested. Performance figures may not reflect all relevant charges.