Simplified Prospectus. M&G Investment Funds (1) Issued by M&G Securities Limited 30 September Special version for Switzerland

Transcription

1 M&G Investment Funds (1) Issued by M&G Securities Limited 3 September Simplified Prospectus M&G Investment Funds (1) Special version for Switzerland An open ended investment company with variable capital structured as an umbrella incorporated in England and Wales. M&G American Fund M&G Asian Fund M&G European Fund M&G European Smaller Companies Fund M&G Global Basics Fund M&G Global Growth Fund M&G Global Leaders Fund M&G Japan Fund M&G Japan Smaller Companies Fund M&G North American Value Fund M&G Pan European Fund

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3 Contents: M&G Investment Funds (1) SECTION 1 - THE COMPANY... 4 SECTION 2 - INVESTMENT INFORMATION... 4 SECTION 3 - FURTHER INFORMATION... 6 SECTION 3A - SPECIAL INFORMATION FOR INVESTORS IN SWITZERLAND... 7 SECTION 4 - THE FUNDS

4 Simplified Prospectus M&G Investment Funds (1) SECTION 1 - THE COMPANY This document constitutes the Simplified Prospectus for M&G INVESTMENT FUNDS (1) (the Company ) which has been prepared in accordance with the Open-Ended Investment Companies Regulations 1 and the rules contained in the Collective Investment Schemes Sourcebook published by the Financial Services Authority (FSA) as part of its handbook of Rules and Guidance. The Simplified Prospectus is dated and valid as at 3 September. Management and Administration The Authorised Corporate Director (ACD) is M&G Securities Limited a private company limited by shares incorporated in England and Wales under the Companies Acts 1862 to 19 on 12 November 196. Its ultimate holding company is Prudential plc, a company incorporated in England and Wales, Registered Office Laurence Pountney Hill, London EC4R HH. M&G Securities Limited is authorized and regulated by the Financial Services Authority (FSA) whose address is 25 The North Colonnade, Canary Wharf, London E14 5HS. The Depositary is The Royal Bank of Scotland PLC, Trustee and Depositary Services, The Broadstone, 5 South Gyle Crescent, Edinburgh EH12 9UZ. Please note that the Royal Bank of Scotland plc (RBS), the Depositary of the Company, has indicated its intention to transfer its Trustee and Depositary Services business to National Westminster Bank plc on 28th October. National Westminster Bank plc is a subsidiary company of RBS and as such The Royal Bank of Scotland Group plc will remain as the ultimate holding company of the Depositary. As Depositary National Westminster Bank plc will have the same duties and responsibilities as RBS and the change of Trustee will have nonimpact on the way the Company is operated. The change is not subject to the approval of the Shareholders however the Shareholders will be informed as to the actual date of the change in the next report and accounts following the date of the change. The Auditor is PricewaterhouseCoopers LLP, 7 More London Riverside, London, SE1 2RT. The Registrar is International Financial Data Services (UK) Limited (IFDS), IFDS House, St Nicholas Lane, Basildon, Essex SS15 5FS. The Investment Manager is M&G Investment Management Limited, Laurence Pountney Hill, London EC4R HH (unless otherwise stated). M&G Investment Funds (1) M&G INVESTMENT FUNDS (1) is an Open-Ended Investment Company (OEIC) with variable capital, authorised by the FSA with effect from 6 e 1. The Company has been established for an unlimited duration. The base currency of the Company is pounds sterling. M&G INVESTMENT FUNDS (1) is an umbrella OEIC. The assets of each fund are treated as separate from those of every other fund and will be invested in accordance with that fund s own investment objective and policy. At present, there are funds available for investment, all of which are suitable for investors seeking long-term capital growth, a regular income or a combination of both. SECTION 2 - INVESTMENT INFORMATION You should consider the following risk factors before investing. Full details of all the risks mentioned here may be found in the full prospectus of the Company. The Risks Of Investing * The value of your investment may fall as well as rise and you may not get back your original investment. * Past performance is not a guide to future performance, the level of income is not fixed and will vary. * A rising rate of inflation will have the effect of reducing the actual value of any gain by an equivalent amount. * The current tax regime applicable to investors in collective investments schemes is not guaranteed and may change in the future. * Where sub-fund charges are taken from capital, this will increase the level of income at the expense of capital growth. * The value of overseas investments may be affected by currency exchange rates. Specific risk factors In addition to the general risk factors, there are other risks which are specific or significant to certain types of investment. These are described below. High Volatility Investors in M&G Asian Fund, M&G European Smaller Companies, M&G Japan Fund and M&G Japan Smaller Companies Fund should expect wider than average price fluctuations as the investments held by the fund tend to be highly volatile. Liquidity Investments in M&G European Smaller Companies and M&G Japan Smaller Companies Fund may be subject to liquidity constraints which means that they may trade infrequently and in small volumes. Normally liquid investments may also be subject to periods of significantly lower liquidity in difficult market conditions. As a result, changes in the value of investments may be more unpredictable and in certain cases, it may be difficult to sell an investment at the last market price quoted or at a value considered to be fair. Concentrated portfolio Sub-funds investing primarily in a specific geographic region, specific asset class, or sector such as smaller companies may have more concentrated portfolios and will therefore carry a higher risk to capital. They will also be potentially more volatile than funds investing in a more diversified portfolio. This risk currently applies to Asian Fund, European Smaller Companies, Japan Fund, Japan Smaller Companies Fund Hedged Share Classes There will be imperfections within any hedging strategy. As such the currency exposure will not be completely eliminated in the hedged Share Classes and no assurance can be given that the hedging objective will be achieved. There is a risk that under certain circumstances, currency hedging transactions in relation to one Share Class could result in liabilities which might affect the Net Asset Value of other Share Classes of the same Sub-fund. This risk currently applies to M&G American Fund only. Investments via M&G International Investments Ltd. Clients should contact our Customer Services Team for information in order to make an initial purchase of shares in any M&G Fund. Customer Services Team M&G International Investments Limited - Branch Office Germany Bleidenstrasse 6- D-63 Frankfurt info@mandg-investments.de Tel.: +49 ()

5 Simplified Prospectus M&G Investment Funds (1) Fax.: +49 () For your security and to improve the quality of our service, we may record and randomly monitor telephone calls. The information contained in an cannot be guaranteed as secure. We advise that you do not include any sensitive information when corresponding with M&G in this way. Shares will be registered in the name of M&G International Nominee Limited, Laurence Poutney Hill, London EC4R HH (the Nominee ), for the account of the investor. This nominee service for investors is free of charge. The minimum amount for any initial investment is 1. for Euro and Euro Class B shares and Euro -H, 5. for Euro Class C shares and Euro Class C-H shares, $ 1. for U.S. Dollar shares and $ 5. for U.S. Dollar Class C shares per fund and share class. Please note that M&G does not accept cash or cheques. On completion of the purchase investors will receive a contract note giving details of their purchase, including the number of shares held by the nominee for their account. Shareholders do not have the right to cancel and withdraw from the purchase. Subsequent investments or any redemption instructions should be sent to M&G International and must state the investor s account number (which is stated on each contract note), the name of the investor/beneficiary, the name of the sub-fund into which the money shall be invested and the respective share class (ISIN). The minimum amount for a subsequent investment in shares of Euro, Euro -H and Euro Class B is 75, Euro Class C and Euro Class C- H 5., U.S. Dollar shares $ 75 and U.S. Dollar Class C shares $ 5. per fund and share class. There are minimum holding and minimum redemption requirements which apply per fund and share class and are listed below. Minimum Holding: Euro - 1.; Euro -H - 1.; Euro Class B - 1.; Euro Class C - 5.; Euro Class C-H - 5.; U.S. Dollar - $ 1.; U.S. Dollar Class C - $ 5.. Minimum redemption: Euro - 75; Euro -H - 75; Euro Class B - 75; Euro Class C - 5.; Euro Class C-H - 5.; U.S. Dollar - $ 75; U.S. Dollar Class C - $ 5.. This share class is available in selected countries only. Investors have the right to switch shares held in one sub-fund of the Company for shares in another sub-fund of the Company subject to the provisions of the prospectus and the minimum holding thresholds outlined above. Switching between funds may incur a charge. Charges And Expenses On Your Investment Annual charges and expenses Each fund has an annual management charge, a depositary fee, a custodian charge and an administration fee, and some funds may have a share class hedging fee. The annual management charge, custodian charge, administration fee and share class hedging fee for each fund are shown in section 4 The Funds. The depositary fee is shown at the end of this section. Paying agents in non UK countries where shares are registered for retail sale may charge investors for their services. Dilution policy The actual cost of purchasing or selling a fund s assets may deviate from the mid-market value used in calculating the fund s share price and may have an adverse effect on the value of the fund. In order to protect the interests of the ongoing shareholders a dilution adjustment may be applied on the purchase and or/redemption of shares. This means that we can apply a dilution adjustment to the single price. This has the effect of moving the single price up or down from the mid-price to allow for the cost of buying or selling investments and is known as swinging. This change protects existing shareholders from being disadvantaged when large deals are placed to buy or sell shares in the funds. Stamp Duty Reserve Tax ( SDRT ) This applies to surrenders and certain transfers of shares. SDRT is technically a liability of the Depositary of the fund but in most cases it will be covered by a charge to the fund. For more information, please see the Prospectus. Monitoring The Value Of Your Shares The most recent prices of Euro and U.S. Dollar Share Classes appear daily in the following newspapers or on our website at Country Germany Newspaper Italy All prices are published on website and a selection of prices are published in Il Sole 24 Ore. Switzerland Luxembourg Spain A selection of prices in Tageblatt Expansión The prices of Sterling Share Classes appear on Tax Liability On Your Investment Your individual tax liability arising from income received and/or realised capital gain from your investment depends on your personal tax situation. For detailed information we would recommend you contact an accountant or other Financial Adviser for independent advice. Taxation Of The Fund tax Each fund will be liable to corporation tax on its taxable income less expenses at the lower rate of income tax (currently %). Capital gains tax Capital gains accruing to a fund will be exempt from UK tax. Depositary fee.75 % per annum of the first 15 million of the Scheme Property,.5% per annum of the next 5 million of the Scheme Property,.25 % per annum of the balance. 5

6 Simplified Prospectus M&G Investment Funds (1) from debt securities Each fund distributes any income from interest-bearing securities on an effective yield basis. For more information, please see the Prospectus SECTION 3 - FURTHER INFORMATION Prospectuses The Prospectus, Simplified Prospectus and Fund Reports are available free of charge on request from the following: Luxembourg J.P. Morgan Bank Luxembourg S.A. 6 Route de Treves, Senningerberg L-2633 Luxembourg Grand Duchy of Luxembourg Germany J.P. Morgan AG ghofstrasse Frankfurt am Main Germany PPM America, Inc Austria Raiffeisen Bank International AG Am Stadtpark 9, A-3 Vienna Austria Italy All the distributors and paying agents appointed in Italy, a list of which is available from each distributor, and from each paying agent. Paying agents appointed may be found on website Switzerland First Independent Fund Services AG Klausstrasse 33 CH 88 Zurich Switzerland Spain The offices of any of the Spanish authorised distributors listed at the CNMV web page ( France RBC Dexia Investor Services Bank France SA 5 rue Réamur 752 Paris France Sweden Skandinaviska Enskilda Banken AB (publ) Sergel Torg Stockholm Sweden Commission sharing arrangements In certain circumstances, M&G may receive information on a stock by a research agency, M&G may then request that following a purchase of this stock, the broker who placed the deal, passes some of their trading commission to the research agency who provided the initial research into the investment decision. Further information on this can be found in the full prospectus. Client money Cash may be held for you in a client money account in any approved EU Financial Institution in certain circumstances. Interest is not paid on any such balances. If the bank becomes insolvent, we will have a claim on behalf of our clients against the bank. If, however, the bank cannot repay all of its creditors, any shortfall may have to be shared pro rata between them. M&G reserves the right to retain any balance where cash has been held in a Client Account for a period of not less than six years and we are unable to trace the client to whom the cash belongs. M&G undertakes to pay all amounts due in instances where contact is re-established with the client. M&G International Investments Nominees Limited Shares will be registered in the name of M&G International Investments Nominees Limited, whose address is the same as our Registered Address. Investments are held on trust and will continue to belong to you even if the nominee becomes insolvent. We are responsible for the acts and omissions of our Nominee. The Nominee is not itself an authorised person under the Financial Services and Markets Act ; it can only hold Investments and does not carry on business in its own right. Law M&G INVESTMENT FUNDS (1) is governed by English Law. All information we will provide will be in English, German, Italian, French or Spanish. You are classified as a retail client within the meaning of the FSA handbook unless we inform you otherwise in writing. Shareholder meetings In accordance with the provisions of the Open-Ended Investment Companies (Amendment) Regulations 5, M&G has elected not to hold annual general meetings. Restriction on investors in the United States The shares in the sub-funds have not been and will not be registered with the US Securities and Exchange Commission under the United States Securities Act of 1933, as amended, or registered or qualified under the securities laws of any state of the United States and may not be offered, sold, transferred or delivered, directly or indirectly, to any investors within the United States. Complaints If you wish to complain about any aspect of the service you have received, or to request a copy of M&G s complaint handling procedures, please contact the relevant M&G contact for your location. If your complaint is not dealt with to your satisfaction, you can write to: The Financial Ombudsman Service (FOS), South Quay Plaza, 183 Marsh Wall, London E14 9SR. 6

7 Simplified Prospectus M&G Investment Funds (1) Compensation We are covered by the Financial Services Compensation Scheme. You may be entitled to compensation from the scheme if we cannot meet our obligations. This depends on the type of business and the circumstances of the claim. Most types of investment business are covered for % of the first 5,. Further information about compensation arrangements is available from the Financial Services Compensation Scheme, 7th Floor, 1 Portsoken Street, London E1 8BN. Order execution of M&G International Investments Limited We will deal with any order to buy or sell shares in a way that achieves the best possible result for you in the circumstances. This will usually involve execution outside of a regulated market or multilateral trading facility as the shares are not quoted on a regulated market or multilateral trading facility. Execution factors We are required under the policy to consider various execution factors in deciding how best to execute a client order. These include price, cost, speed, likelihood of execution and settlement, size, nature and other relevant matters. We will usually consider price to be the most important factor for you. Policy for buying and selling shares When it is necessary to buy or sell shares for you, these orders will be executed with M&G Securities Limited as Authorised Corporate Director (ACD) of M&G Investment Funds (1). We believe that the ACD is best placed to provide us on a consistent basis with a competitive market price and the required level of liquidity. Sometimes a Fund may be available via another trading platform provided by a third party. Although this could be an alternative execution venue, we do not use such platforms as we do not believe that we would obtain a better price by doing so. Monitoring We will monitor the effectiveness of these arrangements and implement any necessary changes to our Order Execution Policy from time to time. This will involve us reviewing whether using other execution venues would be feasible and would generate a better result for you. We will notify you of any material changes to our Order Execution Policy and arrangements made from time to time, where they are relevant to you. Summary of M&G s Conflicts of Interest Policy We recognise that we have an obligation to you to identify and manage the conflicts of interest that may arise within our business. It is a matter of trust and we consider it important for you to know that we will use all reasonable endeavours to ensure we identify these conflicts, look to resolve them and to treat you fairly. SECTION 3A - SPECIAL INFORMATION FOR INVESTORS IN SWITZERLAND (a) Representative and Paying Agent in Switzerland Under the terms of a representation agreement made between the Company and First Independent Fund Services AG, Klausstrasse 33, 88 Zurich, the latter has been appointed as the representative of the Company in Switzerland (the Swiss Representative ). Under the terms of a paying agency agreement made between the Company and JPMorgan Chase Bank, National Association, Columbus, Zurich branch, the latter has been appointed as the paying agent of the Company in Switzerland. (b) Place where the relevant documents may be obtained The Prospectus and Simplified Prospectuses, the Instrument of Incorporation as well as the annual and semi-annual reports of the Company may be obtained free of charge from the Swiss Representative. (c) Publications The Net Asset Value of the Shares of each Sub-Fund, together with an indication commissions excluded will be published daily on Publications in Switzerland relating to the Company, in particular the publication of amendments to the Instrument of Incorporation and the Prospectus, shall be made on and the Swiss Official Gazette of Commerce (SHAB). Specific Instructions Please note, any specific instructions from you as to how you would like your order dealt with may prevent us from taking the steps that we have designed to obtain the best possible result in the circumstances. In any case, however, it is our policy not to take specific instructions from our customers as to how we should fulfil their orders to buy or sell shares. Your Acknowledgement By placing an order with us, you acknowledge that you have been made aware of and accept the nature, policy and processes which we have in place for providing best execution as defined in this Order Execution Policy and that we shall have full discretion to choose a relevant venue for executing any order or orders, but in doing so shall assess and balance a range of all relevant factors, including those set out in this policy disclosure statement which, in our reasonable determination, we consider relevant to achieving the best result for your order. 7

8 M&G Investment Funds (1) Please note that only the Euro and U.S. Dollar share classes (where relevant) are distributed in Continental Europe. M&G American Fund The fund s aim is long term capital growth through investment wholly or mainly in securities of North American (including Canadian) issuers. When not wholly invested as above, it may only invest in companies which are listed, registered, or trading within North America. Policy for achieving objectives The Fund identifies the best stocks from all sectors, size ranges, and phases of the company life cycle (growth, fading, mature and recovery). No top-down views are imposed on sector choices, and there is no reference to a benchmark in the stock selection process. Additional risk factor (s) Transactions will be undertaken to reduce the exposure of material currency movements for investors in the hedged Euro share class. The costs of these transactions will be borne solely by that share class. However, there is a risk that, should the ACD enter into commitments which cannot be met by assets of the hedged Euro share class, this could result in liabilities arising in other share classes of the fund. is paid annually on 31 December. Initial charge Sterling * 4% Euro */A-H 5.25% U.S. Dollar 5.25% Euro/U.S. Dollar Class C 3.25% Euro Class C-H: 3.25% Redemption fee Sterling * Euro */A-H U.S. Dollar Euro/U.S. Dollar Class C Euro Class C-H: Annual management charge** Sterling * 1.5% 1.5% Euro */A-H 1.5% U.S. Dollar 1.5% Euro/U.S. Dollar Class C.75% Euro Class C-H:.75% Custodian charge All Share Classes.36% Administration fee All Share Classes.15% Share class hedging fee Euro -H.6% Euro Class C-H:.6% Total Expense Ratio Sterling * 1.66% (as at 28/2/) 1.66% Euro * 1.65% Euro -H 1.73% Euro Class C.91% Euro Class C-H 1.1% U.S. Dollar * 1.66% U.S. Dollar Class C.91% ** The annual management charge and all other annual charges are taken from income. as at 28 February was 16.6%. It is Sterling Share Fund Bar Chart to end e each year M&G American Fund Source: Morningstar Inc, last years, % return, bid to bid, net income reinvested, sterling Share The cumulative performance over the last years is 8.4% Euro Share Fund Bar Chart to end e each year M&G American Fund Source: Morningstar Inc, last years, % return, bid to bid, net income reinvested, euro Share The cumulative performance over the last years is -27.9% U.S. Dollar Share Fund Bar Chart to end e each year M&G American Fund Source: Morningstar Inc, last years, % return, bid to bid, net income reinvested, US$ Share The cumulative performance over the last years is 23.6%

9 M&G Investment Funds (1) (continued) M&G Asian Fund The Fund s sole aim is long term capital growth. It invests wholly or mainly in a range of Asian (including Australasian) securities. When not wholly invested as above, the Fund may also invest in global securities with the exception of Japanese securities. Policy for achieving objective The Fund comprises a concentrated portfolio of 5-7 stocks from the major Pacific Basin stock markets, including Australia and India. Stocks selected fall into two broad investment categories: companies that are undergoing improvements in their return on capital, either through internal change, external change or innovation, and undervalued business franchises where the sustainability of a company s return is under-appreciated by the market. Additional risk factor(s) High Volatility: Shares held by this Fund tend to be highly volatile and investors should expect wider-than-average price fluctuations. is paid annually on 31 December. Initial charge Sterling * 4% Euro/U.S. Dollar * 5.25% Euro/U.S. Dollar Class C 3.25% Redemption fee Sterling * Euro/U.S. Dollar * Euro/U.S. Dollar Class C Annual management charge** Sterling * 1.5% 1.5% Euro/U.S. Dollar * 1.5% Euro/U.S. Dollar Class C.75% Custodian charge All Share Classes.676% Administration fee All Share Classes.15% Total Expense Ratio Sterling * 1.73% (as at 28/2/) 1.73% Euro * 1.72% Euro Class C.99% U.S. Dollar * 2.41% U.S. Dollar Class C.98% ** The annual management charge and all other annual charges are taken from income. Investment Adviser: M&G Investment Management Limited. as at 28 February was -23.7%. It is Sterling Share Fund Bar Chart to end e each year M&G Asian Fund Source: Morningstar Inc, last years, % return, bid to bid, net income reinvested, sterling Share The cumulative performance over the last years is 255.8% Euro Share Fund Bar Chart to end e each year M&G Asian Fund Source: Morningstar Inc, last years, % return, bid to bid, net income reinvested, euro Share The cumulative performance over the last years is 133.8% U.S. Dollar Share Fund Bar Chart to end e each year M&G Asian Fund Source: Morningstar Inc, last years, % return, bid to bid, net income reinvested, US$ Share The cumulative performance over the last years is 33.9% 9

10 M&G Investment Funds (1) (continued) M&G European Fund The Fund aims primarily for long term capital growth. It invests wholly or predominantly in a diversified portfolio of securities of European (excluding United Kingdom) issuers. When not wholly invested as above, it may also invest in companies which are listed or registered outside Europe but trade within it. is of secondary importance when investments are selected. Policy for achieving objective The Fund is well diversified, containing around 5 stocks, with a bias towards blue chip stocks and invests in companies from all continental European markets. Additional risk factor(s) is paid annually on 31 December. Initial charge Sterling * 4% Nil Euro * 5.25% Euro Class C 3.25% Redemption fee Sterling * Euro * Euro Class C Annual management charge** Sterling * 1.5% 1.5% Euro * 1.5% Euro Class C.75% Custodian charge All Share Classes.193% Administration fee All Share Classes.15% Total Expense Ratio Sterling * 1.67% (as at 28/2/) 1.67% Euro * 1.66% Euro Class C.92% ** The annual management charge and all other annual charges are taken from income. as at 28 February was 25.%. It is Sterling Share Fund Bar Chart to end e each year M&G European Fund Source: Morningstar Inc, last years, % return, bid to bid, net income reinvested, sterling Share The cumulative performance over the last years is 39.4% Euro Share Fund Bar Chart to end e each year M&G European Fund 5-6 The cumulative performance over the last years is -8.7% Source: Morningstar Inc, last years, % return, bid to bid, net income reinvested, euro Share

11 M&G Investment Funds (1) (continued) M&G European Smaller Companies Fund The Fund s sole aim is long term capital growth by investment in smaller companies in Europe. Policy for achieving objective The Fund will include both growth and value stocks within the portfolio. We seek to identify companies that exhibit the following qualities: strong competitive edge (leadership in a niche market, natural barriers to entry, technological advantage), financial strength (strong balance sheet, earnings growth) and a management team able to deliver the appropriate strategy for the business. Additional risk factor(s) High volatility: Shares held by this Fund tend to be highly volatile and investors should expect wider-than-average price fluctuations. is paid annually on 31 December. Initial charge Sterling * 4% Euro * 5.25% Euro Class C 3.25% Redemption fee Sterling * Euro * Euro Class C Annual management charge** Sterling * 1.5% 1.5% Euro * 1.5% Euro Class C.75% Custodian charge All Share Classes.2% Administration fee All Share Classes.15% Total Expense Ratio Sterling * 1.7% (as at 28/2/) 1.69% Euro * 1.74% Euro Class C.95% ** The annual management charge and all other annual charges are taken from income. as at 28 February was 68.86%. It is Sterling Share Fund Bar Chart to end e each year M&G European Smaller Companies Fund Source: Morningstar Inc, last years, % return, bid to bid, net income reinvested, sterling Share The cumulative performance over the last years is 97.3% Euro Share Fund Bar Chart to end e each year M&G European Smaller Companies Fund The cumulative performance over the last years is 3.6% Source: Morningstar Inc, last years, % return, bid to bid, net income reinvested, euro Share

12 M&G Investment Funds (1) (continued) M&G Global Basics Fund The Fund s sole aim is long term capital growth through investing wholly or mainly in companies operating in basic industries ( primary and secondary industries) and also in companies that service these industries. The Fund may also invest in other global equities. Policy for achieving objective The Fund focuses on companies that are considered to be the building blocks of the world s economy. Its investment universe comprises both primary industries (where potential investments will be involved in the extraction of raw materials) and secondary industries (where potential investments will be involved in the conversion of materials into products and services for the consumer). Additional risk factor(s) is paid annually on 31 December. Initial charge Sterling * 4% Euro/U.S. Dollar * 5.25% Euro/U.S. Dollar Class C 3.25% Redemption fee Sterling * Euro/U.S. Dollar * Euro/U.S. Dollar Class C Annual management charge** Sterling * 1.5% 1.5% Euro/U.S. Dollar * 1.75% Euro/U.S. Dollar Class C.75% Custodian charge All Share Classes.193% Administration fee All Share Classes.15% Total Expense Ratio Sterling * 1.67% (as at 28/2/) 1.67% Euro * 1.93% Euro Class C.93% U.S. Dollar * 1.93% U.S. Dollar Class C.88% ** The annual management charge and all other annual charges are taken from income. as at 28 February was 23.96%. It is Sterling Share Fund Bar Chart to end e each year M&G Global Basics Fund Source: Morningstar Inc, last years, % return, bid to bid, net income reinvested, sterling Share The cumulative performance over the last years is 246.2% Euro Share Fund Bar Chart to end e each year M&G Global Basics Fund Source: Morningstar Inc and M&G, last years, % return, bid to bid, net income reinvested, euro Share The cumulative performance over the last years is 122.1% U.S. Dollar Share Fund Bar Chart to end e each year M&G Global Basics Fund Source: Morningstar Inc and M&G, last years, % return, bid to bid, net income reinvested, US$ Share The cumulative performance over the last years is 289.6% 12

13 M&G Investment Funds (1) (continued) M&G Global Growth Fund The Fund aims to maximise long term total return (the contribution of capital growth and income) by investing mainly in a wide range of global equities. Policy for achieving objective The Fund will invest globally (including the UK) in the equities of companies across a wide range of geographies, sectors and market capitalisations. is of a secondary importance to capital growth when investments are selected. Additional risk factor(s) is paid annually on 31 December. (Interim payment on 3 e, if applicable). Initial charge Sterling * 4% Euro Class/U.S. Dollar * 5.25% Euro Class B Euro Class/U.S. Dollar Class C 3.25% Redemption fee Sterling * Euro Class/U.S. Dollar * Euro Class B Euro Class/U.S. Dollar Class C Annual management charge** Sterling * 1.5% 1.5% Euro Class/U.S. Dollar * 1.75% Euro Class B 2.% Euro Class/U.S. Dollar Class C.75% Custodian charge All Share Classes.185% Administration fee All Share Classes.15% Total Expense Ratio Sterling * 1.68% (as at 28/2/) 1.68% Euro * 1.92% Euro Class B 2.17% Euro Class C.92% U.S. Dollar * 1.94% U.S. Dollar Class C.92% ** The annual management charge and all other annual charges are taken from income. This share class is available in selected countries only. as at 28 February was -9.53%. It is Sterling Share Fund Bar Chart to end e each year M&G Global Growth Fund Source: Morningstar Inc, last years, % return, bid to bid, net income reinvested, sterling Share The cumulative performance over the last years is 1.7% Euro Share Fund Bar Chart to end e each year M&G Global Growth Fund Source: Morningstar Inc, last years, % return, bid to bid, net income reinvested, euro Share The cumulative performance over the last years is 31.4% U.S. Dollar Share Fund Bar Chart to end e each year M&G Global Growth Fund Source: Morningstar Inc, last years, % return, bid to bid, net income reinvested, US$ Share The cumulative performance over the last years is 127.7% 13

14 M&G Investment Funds (1) (continued) M&G Global Leaders Fund The Fund aims to maximise long term total return (the combination of income and growth of capital) by investing in a wide range of global equities that the fund manager considers to be leading in their field. Policy for achieving objective The Fund s investment strategy is to select the best stocks from all sectors, countries, size ranges and phases of the company life cycle (growth, fading, mature and recovery). Additional risk factor(s) is paid annually on 31 December. (Interim payment on 3 e, if applicable). Initial charge Sterling * 4% Euro/U.S. Dollar * 5.25% Euro/U.S. Dollar Class C 3.25% Redemption fee Sterling * Euro/U.S. Dollar * Euro/U.S. Dollar Class C Annual management charge** Sterling * 1.5% 1.5% Euro/U.S. Dollar * 1.75% Euro/U.S. Dollar Class C.75% Custodian charge All Share Classes.176% Administration fee All Share Classes.15% Total Expense Ratio Sterling * 1.68% (as at 28/2/) 1.67% Euro * 1.92% Euro Class C.93% U.S. Dollar * 1.93% U.S. Dollar Class C.94% ** The annual management charge is taken from capital, all other annual charges are taken from income. as at 28 February was 61.34%. It is Sterling Share Fund Bar Chart to end e each year M&G Global Leaders Fund Source: Morningstar Inc and M&G, last years, % return, bid to bid, net income reinvested, sterling Share.2 9- The cumulative performance over the last years is 58.1% Euro Share Fund Bar Chart to end e each year M&G Global Leaders Fund Source: Morningstar Inc and M&G, last years, % return, bid to bid, net income reinvested, euro Share The cumulative performance over the last years is 2.% U.S. Dollar Share Fund Bar Chart to end e each year M&G Global Leaders Fund Source: Morningstar Inc and M&G, last years, % return, bid to bid, net income reinvested, US$ Share - The cumulative performance over the last years is 78.2% 14

15 M&G Investment Funds (1) (continued) M&G Japan Fund The Fund aims to secure long term capital growth by investing in a wide range of securities of Japanese issuers, covering most aspects of the economy. Policy for achieving objective The largest and most liquid stocks in the Japanese market are used to form a universe of 38 stocks and this is screened to create a concentrated portfolio of 4-5 high quality companies that are trading on low valuations relative to their history and sector. Additional risk factor(s) High volatility: Shares held by this Fund tend to be highly volatile and investors should expect wider-than-average price fluctuations. is paid annually on 31 December. Initial charge Sterling * 4% Euro * 5.25% Euro Class C 3.25% Redemption fee Sterling * Euro * Euro Class C Annual management charge** Sterling * 1.5% 1.5% Euro * 1.5% Euro Class C.75% Custodian charge All Share Classes.2% Administration fee All Share Classes.15% Total Expense Ratio Sterling * 1.73% (as at 28/2/) 1.73% Euro * 1.73% Euro Class C.97% ** The annual management charge and all other annual charges are taken from income. Investment Adviser: Prudential Asset Management (Singapore) Limited. as at 28 February was.38%. It is Sterling Share Fund Bar Chart to end e each year M&G Japan Fund Source: Morningstar Inc, last years, % return, bid to bid, net income reinvested, sterling Share The cumulative performance over the last years is -4.8% Euro Share Fund Bar Chart to end e each year M&G Japan Fund Source: Morningstar Inc, last years, % return, bid to bid, net income reinvested, euro Share The cumulative performance over the last years is -37.5% 15

16 M&G Investment Funds (1) (continued) M&G Japan Smaller Companies Fund The Fund invests wholly or predominantly in securities of smaller Japanese companies, the universe for which is the bottom third in terms of total market capitalisation of all publicly listed equity in Japan. When not wholly invested as above, the Fund may also invest in medium sized and larger companies in order to enhance its liquidity. Its sole objective is long term capital growth. Policy for achieving objective The Fund invests in a range of good quality, smaller Japanese companies, the universe for which is the bottom third in terms of total market capitalisation of all publicly listed equity in Japan. Additional risk factor(s) High Volatility: Shares held by this Fund tend to be highly volatile and investors should expect wider-than-average price fluctuations. is paid annually on 31 December. Initial charge Sterling * 4% Euro * 5.25% Euro Class C 3.25% Redemption fee Sterling * Euro * Euro Class C Annual management charge** Sterling * 1.5% 1.5% Euro * 1.5% Euro Class C.75% Custodian charge All Share Classes.2% Administration fee All Share Classes.15% Total Expense Ratio Sterling * 1.72% (as at 28/2/) 1.72% Euro * 1.72% Euro Class C.97% ** The annual management charge and all other annual charges are taken from income. Investment Adviser: Prudential Asset Management (Singapore) Limited. as at 28 February was -76.6%. It is Sterling Share Fund Bar Chart to end e each year M&G Japan Smaller Companies Fund Source: Morningstar Inc, last years, % return, bid to bid, net income reinvested, sterling Share The cumulative performance over the last years is 24.% Euro Share Fund Bar Chart to end e each year M&G Japan Smaller Companies Fund Source: Morningstar Inc, last years, % return, bid to bid, net income reinvested, euro Share The cumulative performance over the last years is -18.8% 16

17 M&G Investment Funds (1) (continued) M&G North American Value Fund The Fund aims to achieve long-term capital growth through investment in North American securities of North American companies using a value based investment philosophy. Policy for achieving objective The Fund invests in companies in excess of $1.5 billion. The manager seeks to select solid companies whose share prices do not reflect their potential value. Additional risk factor(s) is paid annually on 31 December. Initial charge Sterling * 4% Euro/U.S. Dollar * 5.25% Euro/U.S. Dollar Class C 3.25% Redemption fee Sterling * Euro/U.S. Dollar * Euro/U.S. Dollar Class C Annual management charge** Sterling * 1.5% 1.5% Euro/U.S. Dollar * 1.5% Euro/U.S. Dollar Class C.75% Custodian charge All Share Classes.% Administration fee All Share Classes.15% Total Expense Ratio Sterling * 1.68% (as at 28/2/) 1.68% Euro * 1.62% Euro Class C.93% U.S. Dollar * 1.72% U.S. Dollar Class C.92% ** The annual management charge and all other annual charges are taken from income. Investment Adviser: PPM America Inc. as at 28 February was %. It is Sterling Share Fund Bar Chart to end e each year M&G North American Value Fund Source: Morningstar Inc, years since launch, % return, bid to bid, net income reinvested, sterling Share The cumulative performance since launch is 9.4% Euro Share Fund Bar Chart to end e each year M&G North American Value Fund Source: Morningstar Inc, years since launch, % return, bid to bid, net income reinvested, euro Share The cumulative performance since launch is -18.% U.S. Dollar Share Fund Bar Chart to end e each year M&G North American Value Fund Source: Morningstar Inc, years since launch, % return, bid to bid, net income reinvested, US$ Share The cumulative performance since launch is -1.1% 17

18 M&G Investment Funds (1) (continued) M&G Pan European Fund The Fund aims to maximise long term total return (the combination of income and growth of capital) through investing mainly in European (including UK) companies or companies that derive the majority of their income from European activity. Policy for achieving objective The fund manager s stock selection process seeks to identify attractively valued companies with sustainable business models that exhibit the following qualities: a competitive edge (market leadership and technological advantage), financial strength (strong balance sheet and sustainable earnings growth) and a management team able to deliver the appropriate strategy for the business. Additional risk factor(s) is paid annually on 31 December. (Interim payment on 3 e, if applicable). Initial charge Sterling * 4% Euro * 5.25% Euro Class B Euro Class C 3.25% Redemption fee Sterling * Euro * Euro Class B Euro Class C Annual management charge** Sterling * 1.5% 1.5% Euro * 1.5% Euro Class B 2.% Euro Class C.75% Custodian charge All Share Classes.149% Administration fee All Share Classes.15% Total Expense Ratio Sterling * 1.68% (as at 28/2/) 1.68% Euro * 1.67% Euro Class B 2.% Euro Class C.93% ** The annual management charge is taken from capital, all other annual charges are taken from income. This share class is available in selected countries only. as at 28 February was %. It is Sterling Share Fund Bar Chart to end e each year M&G Pan European Fund Source: Morningstar Inc, last years, % return, bid to bid, net income reinvested, sterling Share The cumulative performance over the last years is 58.2% Euro Share Fund Bar Chart to end e each year M&G Pan European Fund Source: Morningstar Inc, last years, % return, bid to bid, net income reinvested, euro Share The cumulative performance over the last years is 4.1% - 18

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20 M&G Securities Limited is authorised and regulated by the Financial Services Authority and provides investment products. The company s registered office is Laurence Pountney Hill, London EC4R HH. Registered in England number 9776.