Connecting a world of investment opportunities

Transcription

1 Connecting a world of investment opportunities

2 Contents Your passport to a world of investment potential 3 Switch on to worldwide investment potential 4 Connect to a mainframe of investment expertise 6 Global access to all the key asset classes 6 Expertly connecting with our investors 7 A responsible approach to managing your money 7 Protecting your long-term savings potential 8 Connecting a world of investment opportunities 9 M&G Global Dividend Fund 10 M&G Global Emerging Markets Fund 12 M&G Recovery Fund 14 M&G Optimal Income Fund 16 Glossary 18 How to invest with M&G 19 Please refer to the glossary on page 18 for an explanation of the words highlighted in bold throughout this brochure. 2

3 Your passport to a world of investment potential The investment world can have a lot to offer those who are willing to look beyond their own shores. Not only are there many markets that could contribute to an investor s long-term returns, but different economies tend to perform well at different times, so a well-diversified portfolio with global reach could lead to more untapped investment opportunities than ever before. With so much potential on offer, we believe you need a truly active investment specialist to take full advantage. That s where M&G can help. Our experience and breadth of resources can help connect you to a whole new world of opportunities. The value of stockmarket 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. 3

4 Switch on to worldwide investment potential A truly global investment can access opportunities in economies that are at very different stages of development. It may seem tempting to stay close to home when the local economy looks as strong as it does now, but here are six reasons why we believe a global approach could help you reach your investment goals sooner. 1. Connecting to fast-growing emerging markets As a key emerging economy China isn t just a major exporter, far from it. Based on purchasing power, it is thought that China could become the world s largest economy by the year It s already the fourth largest on some measures, having overtaken Italy and maybe even soon France and the UK You can benefit from the rising wealth of consumers in the developing world This doesn t just help the companies in these regions. These increasingly wealthy, middle-class consumers are becoming more selective in their spending and often favour more established brands popular in developed economies when it comes to luxuries such as cosmetics, vehicles and clothing. It is this market that some believe is here to stay. It s predicted that by 2030, Asia will be home to three billion middle-class people 10 times more than the US and five times more than Europe You can target a wider range of long-term investment opportunities Take research and development (R&D) as an example. Investors may associate this with more developed regions, but it s thought that China and India are responsible for around 20% of the total global investment in R&D due to their need for economic growth 3. The resulting new products made for their own markets are later sold across the globe. This means that companies in the developed world such as the UK and US are forced to respond with their own development to safeguard their foothold in products and services they once dominated globally. 4. You can take advantage of global trends A good example of a significant trend we are witnessing in many developing countries is the movement of people from rural, sparsely populated areas to the cities, where industry and employment opportunities are growing at a vast rate. Such mass urbanisation generates investment opportunities across the spectrum through an increase in demand in areas such as housing, healthcare, leisure provision and infrastructure development. 1 China & India: Key facts, The rise of the global middle class, Emerging markets drive innovation,

5 5. Emerging economies are joining forces to attract foreign investment The new development bank recently established by the five BRICS nations (Brazil, Russia, India, China and South Africa) will mainly fund infrastructure projects such as power plants, sewerage systems and roads 4. Such development is vital to both local and foreign industrial progress and could open up new investment opportunities when these locations are more conducive to industrial growth. 6. You can reduce risk by exposure to economies that perform well at different times In India, for example, we have heard how Prime Minister Modi aims to reinvigorate economic growth 5. If he succeeds, India may see the level of rapid growth that China enjoyed a few years ago. This shows how the two countries are at different stages in their economic development and as such present different investment opportunities. For truly global diversification, we believe UK exposure is key We believe that a diversified global portfolio takes advantage of all the opportunities the world has to offer. Importantly, this means looking at investment potential in the UK alongside other more fast-paced markets. Indeed, experts are forecasting the UK economy to grow by 3.1% in 2014, faster than any other G7 economy 6. 4 The BRICS bank is a glimpse of the future, FT.com, Viewpoint: How Narendra Modi can revive India s economy, UK to post strongest growth in G7, says Item Club,

6 Connect to a mainframe of investment expertise With so much potential out there, selecting the best investment opportunities can be a real challenge. There are a multitude of factors to take into account, such as fluctuating exchange rates, political developments, which asset classes to choose and the potential costs of buying and selling holdings. One way to access this potential is through an investment fund that pools your savings with those of other investors. However, you still need to act with caution, as some global funds may not be as internationally diverse as they seem, with heavy concentrations in particular markets or regions. M&G takes a different approach. Global access to all the key asset classes Our range of over 40 funds is backed by our unique expertise and industry knowledge. Our scale of resources gives us access to a world of opportunities through a truly international range of investment funds. Our 83 years of experience and innovation has helped to shape the financial services industry as we know it today. It is this unrivalled experience that has helped us to build up an extensive research and analysis network providing market-leading insight into both major developed and emerging markets, across all the key asset classes. Our expertise means we re able to invest globally in equities, bonds and commercial property as well as multiasset investments. The work of our analysts and credit specialists helps our fund managers focus on outperforming their competitors over the long term through expert, active stockpicking. The value of stockmarket 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. 6

7 Expertly connecting with our investors Our position as one of Europe s largest active investment managers has helped M&G achieve a number of awards across many areas of expertise. Past performance is not a guide to future performance. The value of stockmarket 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. A responsible approach to managing your money M&G takes its responsibilities as an investor seriously and as such, our investment teams share an acute awareness of their duties as guardians of our clients money. Our responsible approach to investing is one of the reasons we have been in the industry for over 80 years. Environmental, social and governance (ESG) factors can all have an impact on long-term investment returns and this is why we take an all-round perspective on investment opportunities. While we consider it essential to include these considerations in our investment analysis, we do not make investment decisions based solely on our ESG views. Rather, investment decisions are made after giving appropriate consideration to all factors that influence an investment s risk or return. For further insight into our responsible approach to investing you can visit 7

8 Protecting your long-term savings potential Investing for the long term isn t just about deciding where you want to invest and in which asset classes. It s also about using all the tax advantages available to you. Here are two ways M&G can help. The M&G ISA The M&G ISA not only connects you to our extensive range of funds across the globe, it also provides a number of powerful tax benefits and could be a great way to target either a regular income or long-term capital growth. In particular, you don t have to pay capital gains tax or personal income tax on any growth you may generate in The M&G ISA and you don t need to declare your Individual Savings Account (ISA) on your tax return. Please note that any losses made in an ISA cannot be used to offset gains elsewhere. What s more, you have access to it whenever you want it doesn t lock your money away like a pension so it s a flexible option that can help you save for your future. The M&G Junior ISA The M&G Junior ISA could help you give your children the financial support they need to help them achieve their full potential. Junior ISAs carry the same tax advantages as regular ISAs with the benefit of it being out of reach until the children turn 18. The M&G Junior ISA has to be opened by a parent or guardian, but anyone can then contribute to it. With a minimum investment of just 10 a month, you are free to choose the funds it invests in and can change them whenever you want. There are no entry or exit fees to pay, although ongoing charges still apply. Junior ISAs are currently only available to children under the age of 18 who don t already have a Child Trust Fund. The value of stockmarket 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. ISA and Junior ISA tax advantages depend on your individual circumstances and ISA and Junior ISA tax rules may change in the future. ISA and Junior ISA investment limits for the 2014/2015 tax year ISA allowance: 15,000 per person Junior ISA allowance: 4,000 per child 8

9 Connecting a world of investment opportunities Whether you are targeting a regular income or long-term capital growth, M&G has the experience to connect you to a wide range of investment opportunities wherever in the world they re found. Here is just a taste of our global reach and asset class expertise: M&G Global Dividend Fund The consistent application of a successful global investment approach makes the M&G Global Dividend Fund an ideal core equity holding for a diversified portfolio. M&G Global Emerging Markets Fund Broadening your investment horizons to include emerging markets opens the door to an enormous range of companies that have the potential to become leading firms of the future. M&G Recovery Fund The M&G Recovery Fund offers the best of both worlds: a long-term UK-based equity fund with an international flavour. M&G Optimal Income Fund Whatever happens to interest rates in the future, this is one fixed interest fund that has the freedom to go wherever the best value lies. Important information We are unable to give financial advice. If you are unsure about the suitability of your investment, speak to your financial adviser. The views expressed in this document should not be taken as a recommendation, advice or forecast. 9

10 M&G Global Dividend Fund Going where the dividends grow Dividend investing works. Well established in the UK, the approach has long helped investors generate superior returns due to the compounding effect of reinvested dividends. But why restrict your investment universe? Dividend investing works all over the world and some of the best dividend track records are found outside the UK. Fund Manager: Stuart Rhodes The US, for example, has a particularly long and compelling history for dividends. to be found there is an elite group of companies known as dividend achievers that have increased their dividend for over 25 consecutive years 1. Household names such as Coca- Cola, McDonald s and Johnson & Johnson are included in the group. Since the turn of the century, during which US equities have delivered lacklustre returns, barely beating inflation on a total return basis, the dividend achievers have outperformed materially on both a capital and total return basis 2. Stuart Rhodes, Fund Manager of the M&G Global Dividend Fund, believes this is no coincidence. He believes that dividends and share prices go hand in hand and, more importantly, that investors should focus on dividend growth over dividend yield. In light of this, Stuart looks around the world for companies that are able to grow their dividends over the long term, wherever they may be. He then picks companies from three distinct dividend categories to help the fund cope with different stockmarket conditions. The categories complement each other and provide the portfolio with a balance between defensiveness and cyclicality (sensitivity to the economic cycle). Through the consistent application of this investment approach, the M&G Global Dividend Fund has delivered both an excellent total return and a growing level of income to investors since launch in y The dividend growth and the attractive valuations seen in the fund s underlying holdings give Stuart the confidence that he can build on this track record. The favourable tailwind of dividend investing, combined with the opportunity for geographical diversity, makes the M&G Global Dividend Fund an ideal core equity holding in an investor s portfolio. Long-term performance As at 31 y 2014, an investment into the M&G Global Dividend Fund would have achieved a total return of: 34.4% over 3 years 92.4% over 5 years 97.6% since launch (y 2008) Past performance is not a guide to future performance. Fund geographical breakdown As at 31 y % US Geographical breakdown 12.7% UK 1.2% Cash and near cash 2.1% Belgium 2.7% France 4.0% Australia 4.7% Norway 12.1% Canada 10.5% Other 5.4% Switzerland 1 Mergent s Dividend Achievers, Datastream, as at

11 Five year performance % Indexed to % M&G Global Dividend Fund IMA Global Sector Single year performance (5 years ending y) From To M&G Global Dividend Fund +3.33% % +5.86% % % IMA Global Sector +3.85% % -2.74% % % Past performance is not a guide to future performance. The fund is suitable for those investors who understand its distinctive investment strategy. Please refer to the Key Investor Information Document (KIID) contained within this pack for further information, including the risks associated with this fund, before investing. Important information for the M&G Global Dividend Fund The fund invests mainly in company shares and is therefore likely to experience larger price fluctuations than funds that invest in bonds and/or cash. The value of stockmarket 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. The level of any income earned by the fund will fluctuate. Any investment in international companies means that currency exchange rate fluctuations will have an impact on the fund. Please be aware, your investment may increase or decrease as a result of currency fluctuations. 11

12 M&G Global Emerging Markets Fund Seeking out the best companies the emerging markets have to offer Emerging markets cover a vast proportion of the globe and are home to over 80% of the world s population. They also offer an enormous spectrum of companies spanning a diverse selection of countries and industries. The M&G Global Emerging Markets Fund has the freedom to search the entire developing world for the most promising investments. Fund Manager: Matthew Vaight Fund Manager Matthew Vaight has developed a distinctive approach to investing in these fast-changing markets. He looks beyond headlines about the pace of a country s economic growth and focuses on what is happening at the company level. He takes a longterm view and concentrates on finding businesses whose future prospects are being under-appreciated by the market. In particular, he focuses on how firms are run and whether they can create value for their shareholders over time. One of the most exciting trends taking place in emerging markets today, in Matthew s opinion, is the improvement in corporate culture. He believes the emergence of world-class companies in developing nations offer compelling opportunities for investors. Across the emerging world, Matthew is finding plenty of dynamic firms that are striving to improve their performance and embracing innovation and modernisation to become globally competitive. Take Samsung Electronics for example. The South Korean technology giant produces consumer electronic devices and is the world s largest manufacturer of smartphones. Over the past few decades, Samsung has transformed itself into a brand that people want to own. The company has moved away from competing on cost and is now at the forefront of its industry offering innovative, quality products. In future, it is likely that there will be many more emerging market brands enjoying similar success in the developed world. Emerging markets are destined to become an increasingly important part of the global economy in the coming years. This trend will undoubtedly be accompanied by the arrival of emerging market businesses on the world stage. For Matthew, the opportunity to identify the firms that are aiming to become the leading companies of the future is a powerful reason to invest globally, and specifically in emerging markets. Long-term performance As at 31 y 2014, an investment into the M&G Global Emerging Markets Fund would have achieved a total return of: 3.8% over 3 years 49.6% over 5 years 126.8% since launch (ruary 2009) Past performance is not a guide to future performance. Fund geographical breakdown As at 31 y % China/Hong Kong 18.1% South Korea 16.9% Other Geographical breakdown 1.1% Cash and near cash 5.0% UK 6.1% Taiwan 11.5% Brazil 7.2% Russia 8.1% India 6.4% South Africa 12

13 Five year performance % % Indexed to M&G Global Emerging Markets Fund IMA Global Emerging Markets Sector Single year performance (5 years ending y) From To M&G Global Emerging Markets Fund +5.60% +7.39% -8.49% % % IMA Global Emerging Markets Sector +2.57% +5.90% -8.92% % % Past performance is not a guide to future performance. The fund is suitable for those investors who understand its distinctive investment strategy. Please refer to the Key Investor Information Document (KIID) contained within this pack for further information, including the risks associated with this fund, before investing. Important information for the M&G Global Emerging Markets Fund The fund invests mainly in company shares and is therefore likely to experience larger price fluctuations than funds that invest in bonds and/or cash. The value of stockmarket 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. The fund will invest in emerging markets which tend to have larger price fluctuations than more developed countries. The fund may encounter difficulties when buying and selling these investments or converting the proceeds of a sale or any income earned back into the base currency of the fund. The fund will invest in emerging markets which tend to have larger price fluctuations than more developed countries. Any investment in international companies means that currency exchange rate fluctuations will have an impact on the fund. Please be aware, your investment may increase or decrease as a result of currency fluctuations. 13

14 M&G Recovery Fund A UK-focused fund with international reach A UK-focused fund is an important component of a truly diversified global portfolio. Launched in 1969, the M&G Recovery Fund is now one of the largest and most successful funds of its type in the UK, having been established as a mainstream savings platform for long-term investors seeking exposure to the UK stockmarket. Fund Manager: Tom Dobell Managed by Tom Dobell since 2000, the fund s approach of backing the underdog investing in companies that are out of favour with the stockmarket, but where a good management team is making concerted efforts to turn the business around has remained essentially unchanged over its 45-year history. In today s fast-paced world, the sheer overload of available information and data can encourage investors to take a short-term view, often at the expense of patient, long-term investing. However, patience is at the heart of the M&G Recovery Fund s investment process and Tom can therefore enjoy the luxury of being able to wait to realise true value. The fund focuses on corporate rather than economic recovery and acts as an active rather than an activist investor. Tom and his team actively engage on a regular basis with the people that run the businesses in which the fund invests, looking to build a strong relationship with them over time. It is the management of these businesses that will devise and implement the strategy that will, hopefully, lead to corporate recovery. This level of engagement is essential for the team to fully appreciate the challenges each company faces and to properly understand the potential opportunities the management teams are seeking to exploit. Although the fund invests predominantly in UK-listed companies, it nonetheless has an international reach. Companies held in the fund generate over 70% of their sales revenue outside the UK* and the team regularly visits companies overseas businesses to kick the tyres and reinforce relationships with management. The M&G Recovery Fund therefore offers the best of both worlds: a long-term UK-based fund with an international flavour. For an in-depth look at the M&G Recovery Fund including information about its management team and a Q&A with Tom Dobell, visit to request a copy of our M&G Recovery Fund brochure. Long-term performance As at 31 y 2014, an investment into the M&G Recovery Fund would have achieved a total return of: 11.1% over 3 years 56.6% over 5 years Fund manager tenure: 151.8% (March 2000) Past performance is not a guide to future performance. Largest fund holdings As at 31 y % HSBC 7.6% BP Largest holdings 2.3% Unilever 2.4% EasyJet 2.7% Aviva 3.3% Lloyds 2.7% First Quantum Minerals Over the past few years, the team has made a number of overseas research trips, all of which have made a valuable contribution to their understanding of how some of the companies held in the fund are working to improve their returns. This level of engagement is absolutely critical to the investment process. *Source: Citi, % Prudential 4.2% Royal Dutch Shell 3.8% GSK 14

15 Five year performance % 180 Indexed to % M&G Recovery Fund IMA UK All Companies Sector Single year performance (5 years ending y) From To M&G Recovery Fund +0.17% % -3.17% % % IMA UK All Companies Sector +6.66% % -0.44% % % Past performance is not a guide to future performance. The fund is suitable for those investors who understand its distinctive investment strategy. Please refer to the Key Investor Information Document (KIID) contained within this pack for further information, including the risks associated with this fund, before investing. Important information for the M&G Recovery Fund The fund invests mainly in company shares and is therefore likely to experience larger price fluctuations than funds that invest in bonds and/or cash. The value of stockmarket 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. Any investment in international companies means that currency exchange rate fluctuations will have an impact on the fund. Please be aware, your investment may increase or decrease as a result of currency fluctuations. 15

16 M&G Optimal Income Fund A flexible bond fund with the ability to perform in a variety of economic conditions The M&G Optimal Income Fund is a flexible bond fund that seeks to provide returns in a wide variety of bond market conditions. Whatever happens to interest rates in the future, there is one fixed interest fund that has the freedom to go wherever the best value lies. Fund Manager: Richard Woolnough Managed by Richard Woolnough, the fund can invest across a broad range of fixed income assets. At each stage of the economic cycle, Richard aims to be invested in those assets that collectively provide the most attractive, or optimal, income stream for the fund. He has the flexibility to move between government bonds (or gilts), investment grade corporate bonds and high yield corporate bonds. He can even invest a portion of the fund in company shares when they appear to be more attractive than a company s debt. Investment grade corporate bonds are usually issued by established companies that are considered less likely to default on their debt payment obligations, therefore providing investors with a more reliable source of income. High yield corporate bonds are issued by companies with a higher risk of default, but that have the potential for higher returns. Richard s decisions regarding which part of the bond market to invest in are largely based on his macroeconomic views his assessment of the prospects for economic growth, interest rates and inflation, among other things. This top-down investment approach is supplemented by the bottomup analysis of individual bonds and bond issuers. The aim is to determine where the best value lies in the particular area of the market he has identified as attractive through both his own research and that of his team. M&G s Retail Fixed Interest fund management team has grown significantly in recent years, and today includes specialists in many areas of the bond markets, such as government bonds, investment grade and high yield corporate bonds, as well as emerging markets. As well as feeding directly into the more focused portfolios that they manage, the ideas these managers generate help Richard invest in an increasingly global fashion in the M&G Optimal Income Fund. The fund s flexible approach gives Richard the tools to generate returns in a variety of market environments. For this reason, over a full economic cycle, the M&G Optimal Income Fund seeks to outperform funds that can only invest in one particular sector of the bond market. Long-term performance As at 31 y 2014, an investment into the M&G Optimal Income Fund would have achieved a total return of: 26.8% over 3 years 55.9% over 5 years 86.8% since launch (December 2006) Past performance is not a guide to future performance. Largest fund holdings* As at 31 y % Verizon 2.3% Lloyds 2.1% European Investment Bank Largest holdings 0.6% Telefonica 0.6% Virgin Media 1.5% Granite Master Issuer 0.7% Goldman Sachs 0.9% HSBC 1.0% BAA *For more information on the full spectrum of asset types for the M&G Optimal Income Fund please visit 0.7% Thames Water 16

17 Five year performance % % Indexed to M&G Optimal Income Fund IMA Strategic Bond Sector Single year performance (5 years ending y) From To M&G Optimal Income Fund +6.27% +9.44% +9.03% +7.59% % IMA Strategic Bond Sector +6.20% +7.33% +6.25% +6.18% % Past performance is not a guide to future performance. The fund is suitable for those investors who understand its distinctive investment strategy. Please refer to the Key Investor Information Document (KIID) contained within this pack for further information, including the risks associated with this fund, before investing. Important information for the M&G Optimal Income Fund The fund manager has invested or intends to invest more than 35% of the portfolio in securities issued by one or more of the governments of the UK and the USA. Such an investment is in the pursuit of the fund objective. The fund manager s view is subject to change and as a result the list of governments above may also change, provided they are permitted in the Fund s full Prospectus. The Fund allows for the extensive use of derivatives. The value of stockmarket 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. The level of any income earned by the fund will fluctuate. Changes in the interest rate will affect the value and the interest earned from the fixed income securities held by the fund. When interest rates rise, the capital value of the fund is likely to fall and vice versa. 17

18 Glossary Asset Anything having commercial or exchange value that is owned by a business, institution or individual. Asset class Category of assets, such as cash, company shares, fixed income securities (investments that provide a certain level of income or interest) and their sub-categories, as well as tangible assets such as real estate. Bond A type of security, usually issued by a government or company, that normally pays a fixed rate of interest over a given time period, at the end of which the initial investment is repaid. Bottom-up selection Selecting stocks based on the attractiveness of a company. Capital Refers to the financial assets, or resources, that a company has to fund its business operations. Capital growth Occurs when the current value of an investment is greater than the initial amount invested. Developed economy/market Well-established economies with a high degree of industrialisation, standard of living and security. Diversification/Diversified The practice of investing in a variety of assets. This is a risk management technique where, in a well-diversified portfolio, any loss from an individual holding should be offset by gains in other holdings, thereby lessening the impact on the overall portfolio. Dividend Dividends represent a share in the profits of the company and are paid out to a company s shareholders at set times of the year. Emerging economy/market Economies in the process of rapid growth and increasing industrialisation. Investments in emerging markets are generally considered to be riskier than those in developed markets. Equities/Equity Shares of ownership in a company. Fixed interest/income Investments that provide a fixed rate of income or interest, and which repay the initial investment amount at the end of their life. Government bonds Fixed income securities issued by governments, that normally pay a fixed rate of interest over a given time period, at the end of which the initial investment is repaid. High yield bonds Fixed income securities issued by companies with a low credit rating from a recognised credit rating agency. They are considered to be at higher risk of default than better quality, ie higherrated fixed income securities but have the potential for higher rewards. Default means that a company or government is unable to meet interest payments or repay the initial investment amount at the end of a security s life. Inflation The rate of increase in the cost of living. Inflation is usually quoted as an annual percentage, comparing the average price this month with the same month a year earlier. Investment grade bonds Fixed income securities issued by a company with a medium or high credit rating from a recognised credit rating agency. They are considered to be at lower risk from default than those issued by companies with lower credit ratings. Default means that a company or government is unable to meet interest payments or repay the initial investment amount at the end of a security s life. Macroeconomic Refers to the performance and behaviour of an economy at the regional or national level. Macroeconomic factors such as economic output, unemployment, inflation and investment are key indicators of economic performance. Sometimes abbreviated to macro. Risk The chance that an investment s return will be different to what is expected. Risk includes the possibility of losing some or all of the original investment. Top-down investing An investment approach that analyses economic factors, ie surveys the big picture, before selecting which companies to invest in. The top-down investor will look at which industries are likely to generate the best returns in certain economic conditions and limit the search to that area. Total return The term for the gain or loss derived from an investment over a particular period. Total return includes income (in the form of interest or dividend payments) and capital gains. Valuation The worth of an asset or company based on its current price. Yield Refers to the income received from an investment and is usually expressed annually as a percentage based on the investment s cost, its current market value or face value. 18

19 How to invest with M&G Whatever your investment goals, M&G has a fund to help you get there. But don t delay. We believe the sooner you start making the most of the opportunities investing with M&G can bring, the better. The views expressed in this document should not be taken as a recommendation, advice or forecast. Please note that we are unable to give financial advice. If you are unsure about the suitability of your investment, please speak to a financial adviser. Before you invest, please make sure you have read the Prospectus as well as the Important Information for Investors document (III) and the Key Investor Information Document (KIID) for the fund in which you wish to invest. The III and the KIIDs for the funds explained within this brochure are featured within a supplementary booklet enclosed within this pack. Within the KIIDs you will find more information about your investment, including details about the fund s different share classes be sure to choose the appropriate one for you. It also explains fund charges, including the ongoing charge, a deduction from your fund which M&G makes to cover the costs of investment management and administration. If you wish to invest in any other funds in the M&G range, the relevant and most up-to-date KIIDs (including fund charges) can be downloaded from or requested by calling our Customer Relations team on When you have read the relevant documents: Invest by post Complete the relevant application form and return it to us, with your cheque (if applicable), in the reply paid envelope provided in this pack. If you require any additional M&G forms these can be downloaded from our website Invest by phone* Call our Investment Helpline on and quote reference XGDC. We are open from 8.00am to 6.00pm Monday to Friday and from 9.00am to 1.00pm on Saturday. For security purposes and to improve the quality of our service, we may record and monitor telephone calls. Invest online** If you are an existing My Account customer and wish to invest online using a debit card***, visit us at Please ensure that you enter XGDD in the box marked Marketing code. If you are not yet registered for My Account but would like to invest online, please visit us at * Existing M&G customers will need their M&G client reference. Failure to provide this may affect your ability to transact with us. Your M&G client reference can be found on your M&G statement. **Not available for The M&G Junior ISA. ***We accept Maestro, Switch, MasterCard Debit, Visa Debit, Solo and Visa Delta. 19

20 Connect with tomorrow s investment opportunities, today mandg.co.uk/connecting A booklet containing the Key Investor Information Documents for the four funds discussed within this brochure and the Important Information for Investors document has been included within this pack. If you would like to request the Key Investor Information Documents for other funds in the M&G range please contact the Investment Helpline or visit our website. Source of performance figures for all funds: Morningstar, Inc. and M&G Statistics, Sterling Class A shares, bid to bid with net income reinvested as at All ratings as at Ratings should not be taken as recommendations. Morningstar logo copyright 2011 Morningstar UK Ltd. All rights reserved. If you would like to receive a copy of the Prospectus in English free of charge, please call our Customer Relations team on Lines are open from 8.00am to 6.00pm Monday to Friday and from 9.00am to 1.00pm on Saturday. For your protection calls may be recorded. This Financial Promotion is issued by M&G Financial Services Limited and M&G Securities Limited which are both authorised and regulated by the Financial Conduct Authority in the UK and provide ISAs and other investments. The registered office of both companies is Laurence Pountney Hill, London EC4R 0HH. M&G Financial Services Limited is registered in England No M&G Securities Limited is registered in England No AUG 14 / 50313