The fund has two aims:
- To pay a fixed annual distribution of 2.5% based on the initial amount invested until maturity in December 2023;
- To grow capital over the six-year term.
Investment policy and strategy
Core investment: The fund invests in M&G funds to gain exposure to a range of
assets. The M&G funds can be invested in a single asset class, or in a range of asset classes, including company shares, bonds, convertibles, currencies and money market instruments, from anywhere in the world. In the period leading up to maturity, the fund may hold high levels of cash and assets that can be turned quickly into cash. The fund will be established for a period of six years after the launch date, during which time no further subscriptions will be allowed. Investors who remain invested until maturity will not be subject to any redemption charge, but investors who redeem prior to maturity will be subject to a regressive redemption charge.
For more information on the redemption charge applicable, please refer to the Prospectus, which can be found by visiting www.mandg.lu
Strategy in brief: The investment approach combines in-depth research to work out the value of assets over the short to medium term, with analysis of market reactions to events, to identify investment opportunities. The investment manager has a flexible top-down approach to the allocation of capital between different funds in response to changes in economic conditions and asset values. The fund will invest in different types of M&G funds, including those that provide income in order to generate an income, but can distribute from capital to meet its annual fixed distribution of 2.5%.
Key risks associated with this 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. The income distributions you receive from the fund are set at a fixed rate. If the income generated by the investment within the fund is too low, your income distribution may be paid out partially or completely from capital. There is no guarantee that the fund will achieve its objective and you may get back less than you originally invested.
The fund can be exposed to different currencies. Movements in currency exchange rates may adversely affect the value of your investment.
The fund invests in other funds, which are subject to the risks associated with the type of assets held in those funds.
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.