x Episode Growth Fund

Episode Growth Fund

ISIN
GB0031960585

Price (08.04.2020)
73.11

% Price Change
-2.26

Objective and investment policy

Objective

The fund aims to provide a combination of capital growth and income, net of the ongoing charge figure, that is higher than that of a composite index comprising two thirds of global company shares and one third of global bonds, over any five-year period.

The composite index is 2/3 MSCI ACWI Index and 1/3 Bloomberg Barclays Global Aggregate GBP Hedged Index.

Investment policy and strategy

Core investment: The fund typically invests in a mix of assets, including company shares, bonds, convertibles and currencies. The fund may invest in these assets directly, via derivatives or through other funds. At least 25% of the fund is held in sterling and at least 50% of the fund is held in US dollar, sterling, yen and euro combined.

Other investments: The fund may invest in other assets (such as property) via derivatives or through other funds.

Derivatives: The fund may use derivatives to reduce the risks and costs of managing the fund.

Strategy in brief: The fund has a very flexible investment approach, with the freedom to invest in different types of assets in response to changes in economic conditions and the valuation of assets. The fund typically invests 40-85% of its assets in company shares and convertibles, 15-50% in bonds or cash, and up to 10% 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:

2/3 MSCI ACWI Index

1/3 Bloomberg Barclays Global Aggregate GBP Hedged Index

The benchmark is a target which the fund seeks to outperform. The composite index has been chosen as the fund’s benchmark as it best reflects the scope of the fund’s investment policy. The benchmark is used solely to measure the fund’s performance and does not constrain the fund's portfolio construction.

The fund is actively managed. The fund manager has complete freedom in choosing which investments to buy, hold and sell in the fund. The fund’s holdings may deviate significantly from the benchmark’s constituents.

For unhedged and hedged share classes, the benchmark is shown in the share class currency.

You can find more information about the objective and investment policy of the fund in the Prospectus.

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.

The fund may use derivatives with the aim of profiting from a rise or a fall in the value of an asset (for example, a company’s bonds). However, if the asset’s value varies in a different manner, the fund may incur a loss.

The fund invests in other funds, and there is a risk that the value of the assets held by those funds is not always reflected in the funds’ reported values. The fund manager will not have control over the management of those funds or the pricing of the assets they hold.

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 allows for the extensive use of derivatives


The performance webpage for this fund is currently being reconfigured. In the interim, for performance information, please refer to the latest Fund Factsheet which can be found in the Literature section.

Fund Team

Eric Lonergan

Eric Lonergan - Fund 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.

 Team member biography
Craig Moran

Craig Moran - Deputy 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

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

2 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.