x Episode Allocation Fund

Episode Allocation Fund

ISIN
GB00B1P9ZJ26

Price (03.07.2020)
176.98

% Price Change
0.23

Objective and investment policy

Objective

The fund aims to deliver combined income and capital growth of at least 5% a year above the 3-month GBP LIBOR, before any charges are taken, over any five-year period. LIBOR is the rate at which banks borrow money from each other. There is no guarantee that the fund will achieve a positive return over any period. Investors may not get back the original amount they invested.

Investment policy and strategy

Core investment:The fund is typically invested in a mix of assets, including company shares, bonds, convertibles and currencies. The fund may invest directly or indirectly via other funds or derivatives. A minimum of 30% of the fund is exposed to sterling and a minimum of 60% to developed market currencies (including sterling).

Other investments: The fund may also invest indirectly in property and other assets via other funds or derivatives. Derivatives may also be used to reduce risk and costs and to manage the impact of changes in currency exchange rates on the fund’s investments.

Strategy in brief: The fund has a very flexible investment approach, with the freedom to invest in different types in response to changes in economic conditions and the valuation of assets. The fund will typically invest 20-60% of its assets in company shares and convertibles, 30-75% in bonds or cash, and up to 20% in other assets.

These allocations reflect the net exposure of the portfolio. 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 particular, the fund manager seeks to respond when asset prices move away from a reasonable sense of "fair" long-term value due to the market’s reaction to events.

Benchmark: 3-month GBP LIBOR + 5%

The fund manager makes active investment decisions for the fund. The benchmark is a target which the fund seeks to achieve. The target benchmark is used solely to measure the fund’s performance.

For unhedged share classes, the rate is shown in the share class currency.

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.

The fund invests in other funds, which are subject to the risks associated with the type of assets held in those funds.

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

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.

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.

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.


The performance webpage for this fund is currently being reconfigured.

Fund Team

Juan Nevado

Juan Nevado - Co-manager

Juan Nevado joined PPM (now M&G) in 1988 and is a member of the M&G Multi Asset team, with more than 20 years of investment experience. In January 2011, Juan was appointed co-manager of the M&G Dynamic Allocation and the M&G Episode Allocation strategies. In April 2015, he was appointed co-manager of the M&G Conservative Allocation strategy (then named Prudent Allocation) on its launch. 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
Tony Finding

Tony Finding - Co-manager

Tony Finding joined PPM (now M&G) in 1997 as an economist and subsequently took responsibility for the generation of views on yield curve and foreign exchange trading opportunities. In 2001, Tony developed his expertise in credit and exotic fixed interest securities by spending time seconded to Prudential's US-based investment management team. Tony has been a member of the Multi Asset team since 1999 and currently co-manages the Episode Allocation strategy. He holds a BSc in economics from the LSE and is a CFA charterholder.

 Team member biography
Craig Moran

Craig Moran - Deputy Manager

Craig Moran 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 and was subsequently promoted to deputy fund manager and co-fund manager for a range of multi-asset funds domiciled in London and Luxembourg. 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

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

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

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

Ratings

Rating is at a share class level

3 Star Rating

Ratings as at 28/02/2020. 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 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.