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Audience

Multi-asset funds

Allocation range

Find out more about our funds within M&G Allocation range equipped to meet a range of investment needs

Allocation range

Allocation blog

The direct line with the M&G Multi Asset team

Visit our Allocation blog

Why choose a multi-asset fund?

Multi asset funds can offer investors a diversified blend of equities, fixed income, property, cash and currencies in a single portfolio.

But markets move and change. As they do so, different asset classes offer opportunities. A good fund manager will seek to spot these opportunities and position your investment so as to generate the best performance within your chosen fund's objectives.

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 funds will achieve their objective, and you may not get back the amount you originally invested.

Why invest with M&G

We believe the investment philosophy we use in our multi-asset funds is unique, based on the ‘Episode’ process developed by Dave Fishwick, head of macro and equities investment at M&G.

This approach seeks to combine our robust valuation framework with a behavioural finance philosophy that seeks to identify instances when investors’ emotions, rather than fundamentals, drive markets - thus creating opportunities.

M&G multi-asset funds

M&G (Lux) Conservative Allocation Fund*

M&G (Lux) Dynamic Allocation Fund*

M&G (Lux) Income Allocation Fund*

M&G Episode Macro Fund

M&G (Lux) Global Target Return Fund

*The M&G (Lux) Dynamic Allocation Fund, M&G (Lux) Conservative Allocation Fund and M&G (Lux) Income Allocation Fund, Luxembourg-authorised SICAVs, launched on 16 January 2018. On 16 March 2018, the M&G Dynamic Allocation Fund, M&G Prudent Allocation Fund and M&G Income Allocation Fund, (UK-authorised OEICs) merged into the respective SICAVs. The SICAVs are run by the same fund managers, applying the same investment strategy, as the respective UK-authorised OEICs.

M&G Dynamic Allocation Fund

Neutral position: Fixed interest* Equities Other

Mainly convertibles

* Excluding cash and cash equivalents.

The pie charts above show the neutral positions of the funds if all assets were trading at their 'fair value'. This can be thought of as a strategic asset allocation. In a ideal world, when all assets were trading at their 'fair value', then neutrality would be how a fund was positioned, given its strategy and risk profile. However, assets seldom trade at fair value, so the actual allocation of each fund may not match the neutral position.

The fund may be suitable for investors:

  • Who are seeking to cautiously grow capital but wish to limit equity exposure to manage volatility.
  • Who are willing to take some risk with their capital in order to potentially generate better returns than those available from cash in a bank account and mainstream government bonds, over the medium term.
  • Who are comfortable with the use of derivative strategies for risk management purposes.

Key facts

  • Aims to deliver a positive total return (the combination of income and growth of capital) over any three-year period through an investment approach which seeks to manage volatility.
  • A flexible, global multi-asset fund that is able to take long or short positions within a range of asset classes such as equities, fixed income and currencies.
  • The managers estimate that the fund has the potential to deliver returns between 3% and 6% per annum with volatility between 3% and 7% per annum, over the medium term*. However, this is not guaranteed and may be revised in future.

Other M&G multi-asset funds:

M&G Episode Macro Fund

Please note, these figures are internal guidelines only and may be revised in future.

* The potential return is quoted net of charges on a total return basis (combination of income and capital growth) and calculated over a three- to five-year period. The potential volatility figures are calculated on a monthly basis over the medium term.

These funds allow for the extensive use of derivatives.

M&G Prudent Allocation Fund

Neutral position: Fixed interest* Equities Other

Mainly real estate securities and convertibles

* Excluding cash and cash equivalents.

The pie charts above show the neutral positions of the funds if all assets were trading at their 'fair value'. This can be thought of as a strategic asset allocation. In a ideal world, when all assets were trading at their 'fair value', then neutrality would be how a fund was positioned, given its strategy and risk profile. However, assets seldom trade at fair value, so the actual allocation of each fund may not match the neutral position.

The fund may be suitable for investors:

  • Who are seeking to combine relatively uncorrelated assets in a single portfolio and delegate asset allocation decisions to experienced fund managers.
  • Who have a medium appetite for risk and would like an even balance between ‘risky’ and ‘safe’ assets, in ‘normal’ market conditions.
  • Who would like a fund with a high degree of flexibility to manage risk and return by varying asset allocations materially in response to rapidly changing market conditions.

Key facts

  • A flexible, global multi-asset fund that is able to take long or short positions within a range of asset classes such as equities, fixed income and currencies.
  • Aims to deliver positive total returns in any three-year period from a flexibly managed portfolio of global assets. There is no guarantee that the fund will achieve a positive return over this, or any other, period and investors may not recoup the original amount they invested.
  • The managers estimate that the fund has the potential to deliver returns of between 5% and 10% per annum, with volatility between 5% and 12%.*

Other M&G multi-asset funds:

M&G Episode Macro Fund

Please note, these figures are internal guidelines only and may be revised in future.

*The potential return is quoted net of charges on a total return basis (combination of income and capital growth) and calculated over a three- to five-year period. The potential volatility figures are calculated on a monthly basis over the medium term.

These funds allow for the extensive use of derivatives.

M&G Income Allocation Fund

Neutral position: Fixed interest* Equities Other

† Mainly real estate securities and convertibles

* Excluding cash and cash equivalents.

The pie charts above show the neutral positions of the funds if all assets were trading at their 'fair value'. This can be thought of as a strategic asset allocation. In a ideal world, when all assets were trading at their 'fair value', then neutrality would be how a fund was positioned, given its strategy and risk profile. However, assets seldom trade at fair value, so the actual allocation of each fund may not match the neutral position.

The fund may be suitable for investors:

  • Who are seeking a regular income along with some capital growth, over the long term.
  • Who are considering their long-term income requirements, ongoing financial obligations and ambitions, and understand the need to grow the income stream over time in order to meet the rising cost of living.
  • Who would like to manage risk by combining a globally diversified range of income-generating assets in a single portfolio.

Key facts

  • Aims to generate a high and rising level of income over time through investment in a diversified range of assets. Subject to this, the fund aims to provide capital growth over the long term.
  • Has the potential to deliver an estimated gross annual yield of around 4%*, distributed monthly.
  • Income distributed is income produced by the assets held in the portfolio, and is never drawn from capital. The fund manager believes it is vital not to over-reach for income in very high-yielding assets at the potential expense of capital growth.

Other M&G multi-asset funds:

M&G Episode Macro Fund

Please note, these figures are internal guidelines only and may be revised in future.

These funds allow for the extensive use of derivatives.

*Estimated annual yield based on the gross income, before withholding tax, expected to be received from the underlying investments in the fund, as a percentage of the current fund share price. The estimated annual yield is not guaranteed and may be revised in the future. The ongoing charge is taken from investments held in the fund’s portfolio and not from the income these investments produce.

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For Investment Professionals only. Not for onward distribution to any other type of client. No other persons should rely on the information contained on this website. Content should therefore be shared responsibly with other investment professionals. 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.