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M&G (Lux) Income Allocation Fund

Objective and investment policy

Objective

The fund has two aims:
- To provide growing income over any three-year period
- To provide capital growth of 2-4% on average per year over any three-year period.

Investment policy and strategy

Core investment: The fund typically invests directly in a mix of income-generating assets within the following allocation ranges:

• 40-80% in fixed income securities (including bonds and asset-back securities)

• 10-50% in company shares

The fund may also invest in the above assets indirectly via derivatives or through other funds. The fund may invest in China A-Shares and in Chinese bonds denominated in Renminbi. A minimum of 70% of the fund is typically invested in assets denominated in euro or hedged back to the euro.

Other investment: The fund may invest up to 20% in convertibles and contingent convetible debt securities, other funds and cash or assets that can be turned into cash quickly.

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

Strategy in brief: The fund is actively 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 70% of the fund in euros.

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 value of the fund will fall if the issuer of a fixed income security held is unable to pay income payments or repay its debt (known as a default). Fixed income securities that pay a higher level of income usually have a lower credit rating because of the increased risk of default. The higher the rating the less likely it is that the issuer will default, but ratings are subject to change.

Changes in currency exchange rates will affect the value of your investment.

Hedged share classes aim to mirror the performance of another share class. We cannot guarantee thatthe hedging objective will be achieved. The hedging strategy will limit holders of the hedged share class from benefiting if the hedged share class currency falls against the euro.

Other information

The Fund allows for the extensive use of derivatives.

Performance

Fund Team

Steven Andrew

Steven Andrew - Fund manager

Steven Andrew joined M&G in 2005 as a member of the portfolio strategy and risk team, before moving to the multi-asset team, where he helped to formulate asset allocation strategies for M&G's multi-asset fund range. In November 2010, Steven was appointed manager of the M&G Episode Income Fund (a UK-authorised OEIC). Three years later, he became manager of the M&G Income Allocation Fund upon its launch, a fund that merged into the M&G (Lux) Income Allocation Fund in March 2018. He was appointed deputy manager of the M&G (Lux) Sustainable Allocation Fund upon launch in November 2018. Steven began his career at the Bank of England in 1987 and subsequently worked at F&C Asset Management and Merrill Lynch before joining M&G. He holds a BSc (Hons) degree in financial economics from the University of London.

 Team member biography
Maria Municchi

Maria Municchi - Deputy Manager

Maria Municchi is manager of the M&G (Lux) Sustainable Allocation Fund since launch. She is also deputy manager of the M&G (Lux) Income Allocation Fund and M&G Episode Income Fund (UK-authorised OEIC). Before joining M&G in 2009, Maria worked at Barings and UBS Asset Management. She has an MSc in international management and finance and 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

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

5 Star Rating

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This website is intended only for Intermediary Investors in Singapore.
Specifically, the information on these pages should not be used or relied upon by the public of Singapore or any other type of investor from any other jurisdiction.
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.