M&G European Smaller Companies Fund

Transcription

1 M&G European Smaller Companies Fund a sub-fund of M&G Investment Funds (1) Annual Short Report August 2017 For the year ended 31 August 2017

2 Fund information The Authorised Corporate Director (ACD) of M&G Investment Funds (1) presents its Annual Short Report for M&G European Smaller Companies Fund which contains a review of the fund s investment activities and investment performance during the period. The ACD s Annual Long Report and audited Financial Statements for M&G Investment Funds (1), incorporating all the sub-funds and a Glossary of terms is available free of charge either from our website at or by calling M&G Customer Relations on ACD M&G Securities Limited, Laurence Pountney Hill, London EC4R 0HH Telephone: (Authorised and regulated by the Financial Conduct Authority. M&G Securities Limited is a member of the Investment Association and of the Tax Incentivised Savings Association.) Important information Please note that with effect from 16 December 2016: We have discounted the initial charge to zero on all new investments into sterling share classes that currently carry such a charge. We have waived the exit charges on future withdrawals from all Sterling Class X shares. Investment objective and policy The Fund invests in smaller companies in Europe, with the sole objective of long term capital growth. It will invest wholly or mainly in securities of European companies which constitute the bottom third in terms of total market capitalisation of all publicly listed equity in Europe. When not wholly invested as above, the Fund may only invest in medium and larger capitalised companies in order to enhance the liquidity of the Fund. Investment approach The M&G European Smaller Companies Fund invests in smaller quality companies, with advantageous characteristics, or economic moats, to protect their profitability and an element of change helping to drive their value. Importantly, the fund manager invests in businesses where short-term disruptions have provided a clear valuation opportunity, and will engage with management where appropriate, to help bring about positive change. The fund manager believes that a focus on both quality and value offers a powerful combination, providing the long-term growth in returns that quality businesses can deliver, as well as the potential boost to a company s share price when a disruption has been resolved and the shares revert to a more appropriate level. Key to his approach is remaining patient and taking a long-term view, both in the entry and exit points of the fund s holdings. The fund manager keeps the portfolio focused, generally holding fewer than 50 wellunderstood stocks from a diverse universe of smaller companies, which is often less well-covered and understood than a universe of larger businesses. Holdings in the fund generally fall into one of two buckets stable growth and opportunities. The manager sees stable growth companies as those that generate high levels of cash with a visible reinvestment plan, and represent lower business risk. Opportunities companies tend to be improving their returns on capital, have more potential for internal change and are more attractively valued at the point of investment. 1 2

3 Fund information Investment review Risk profile The fund invests in the shares of companies listed in Europe and is, therefore, subject to the price volatility of the European stockmarket and the performance of individual companies. The fund may also be subject to fluctuations in currency exchange rates. The fund s focus is on quality businesses where an element of change is helping to drive their value, and these stocks could potentially experience a degree of illiquidity in times of market distress. The fund is a concentrated portfolio of between holdings, but is mainly invested in the shares of large and medium-sized companies, which are normally traded with relative ease. The fund also invests in the shares of smaller companies, which can be more unpredictable and difficult to buy and sell. Diversification across countries, industries and market capitalisation is therefore key in managing liquidity risk and reducing market risk. The fund s risks are measured and managed as an integral part of the investment process. Please note that the risk management policies are set out in full in the financial statements and notes sections of the Annual Long Report and audited Financial Statements of M&G Investment Funds (1). The following table shows the risk number associated with the fund and is based on Sterling Class A shares. Low risk Typically lower rewards The above number: High risk Typically higher rewards is based on the rate at which the value of the fund has moved up and down in the past and is based on historical data so may not be a reliable indicator of the future risk profile of the fund. is not guaranteed and may change over time and the lowest risk number does not mean risk free. has changed during this period. From 1 September 2016 to 23 February 2017 the risk number was 6. As at 1 September 2017, for the year ended 31 August 2017 Performance against objective Between 1 September 2016 (the start of the review period) and 1 September 2017, the M&G European Smaller Companies Fund delivered positive total returns (the combination of income and growth of capital) across all of its share classes, with all share classes finishing ahead of a comparable index, the Euromoney Smaller European Companies Index.* Over the 12 months, returns from the index were 27.6%, 17.3% and 24.4% in sterling, euros and US dollars, respectively. Over five years and since launch, the fund has met its objective of delivering positive capital growth. To give an indication of the performance of the fund, the following table shows the compound rate of return, per annum, over the period for Sterling Class A (Accumulation) shares and Sterling Class I (Accumulation) shares. Calculated on a price to price basis with income reinvested. Long-term performance One Three Five year years years Since launch % [a] % p.a. % p.a. % p.a. Sterling [b] Class A [c] Class I [d] [a] Absolute basis. [b] Price to price with income reinvested. [c] 30 September 1996, the end of the initial offer period of the predecessor unit trust. [d] 3 August 2012, the launch date of the share class. Please note past performance is not a guide to future performance and the value of investments, and the income from them, will fluctuate. This will cause the fund price to fall as well as rise and you may not get back the original amount you invested. 3 4

4 Investment review Investment performance European stockmarkets delivered positive returns for the 12 months under review, with smaller companies outpacing both the wider European and global markets. The period under review was eventful for European stockmarkets. As we started the period, investors had broadly switched their attention to elections in the US, having previously been focused on the aftermath of the UK referendum on EU membership. Markets were turbulent in the run-up to November s presidential contest, but then rose steadily following the surprise election of Donald Trump, as the potential for reduced taxes and regulation, as well as a prospective boost to spending on infrastructure, cheered US investors this positive mood was reflected in Europe. Following a lull as we entered the new year, markets then maintained their upward trajectory for much of the period under review, with political and economic developments in Europe helping to drive sentiment on the continent. In political terms, the tide of populism highlighted in 2016 by the Brexit decision in the UK and Donald Trump s presidency in the US was stemmed in Europe, with elections in Holland and France failing to elect candidates from the extremes of the political spectrum; this had a positive effect on markets. Investors were also enlivened by strong business sentiment and accelerating economic activity, which helped to drive earnings. The euro s value, as well, was boosted by Emmanuel Macron s clear-cut win in the French presidential election, while strong economic data from across the region helped to extend gains. With a sharp decrease in eurozone unemployment and business confidence surveys continuing their positive trend, Europe has appeared to be in the midst of a broad-based upturn, helping to further improve investor confidence. The currency strength, however, had ramifications for euro denominated investments while stockmarkets continued to deliver positive returns in sterling and US dollar terms, returns in euro flattened as we moved through the end of the period under review, reflecting the euro s relative rise in value. Against this background, the industrial goods, technology and basic materials sectors delivered the strongest performance in the smaller company space, while retail providers and financials lagged the wider market. For the fund, outperformance was driven by stock selection within the industrial goods sector, while stockpicking among consumer goods, retail providers and technology was also supportive. On the downside, selection among business providers, natural resources and financials weighed on relative returns, but this was more than compensated for by the fund s positive contributors. At an individual stock level, the fund s largest contributor for the period was AMS, an Austrian-based company that develops and manufactures high-performance sensors for applications across a wide range of industries. AMS reported near the middle of the review period that it saw potential for strong revenue growth in 2017, helped by its acquisition of optical sensor maker Heptagon in Singapore; its share price rose sharply in reaction, and continued to appreciate as we moved through the period. Investors were also expecting the company to benefit from the launch of Apple s iphone 8, expected at the end of 2017, further boosting sentiment. German engine manufacturer Deutz also delivered robust performance, its shares rising steadily for most of the review period. This was on the back of ongoing operational success, including solid sales and improving earnings. Its shares did sell off to a degree near the end of the review period, after truck maker Volvo sold its 25% stake in the business, but this decline was not enough to wipe off the strong gains made earlier in the year. Other supportive holdings included Irish housebuilder Cairn Homes and Equiniti Group, a market leader in technology, finance and administrative services in complex or regulated markets. Cairn has benefited from recovery in the Irish housing market, particularly as it is the sole Irish property developer legally allowed to build for the private sector (following government action after the Irish housing bubble burst in 2007). We think investors are beginning to realise the value of this business, and that has been reflected in its share price performance. Equiniti s shares, meanwhile, have benefited from investors beginning to realise the potential positive outcomes of the company s recent restructuring, with some of its expensive UK development costs being transferred to India. Investors are also realising that the company sits on a lot of cash, and stands to benefit from rising interest rates. On the downside, the fund s largest detractor was branded jewellery creator Pandora. Having performed well for some time, the company s shares slid after it forecast for slower revenue growth than anticipated, as well as squeezed margins in light of higher commodity prices. The company s slower revenue growth largely resulted from its operations in the US, where the retail environment has been particularly challenging. As we neared the end of the review period, though, Pandora reported an increase in US like-for-like sales, driven by more effective advertising and promotions. 5 6

5 Investment review ID Logistics, a high-quality French warehouse outsourcing specialist, dragged on returns as well. The company s shares fell sharply near the middle of the period under review, after it reported lower-thanexpected earnings. This was, counterintuitively, mainly due to strong growth and the establishment of new contracts it was the start-up costs associated with these contracts that weighed on earnings. We think the long-term investment case for the company remains intact, and we are comfortable with the holding. Other laggards included healthcare technology company EMIS Group and diversified business services and distribution firm DCC. A major supplier to the UK s National Health Service, Emis announced that new rollouts of its systems in Northern Ireland were progressing more slowly than had previously been expected, while facing an increasingly difficult operating environment as a result of NHS funding pressures; investors were disappointed. DCC, meanwhile, saw a degree of profit taking over the period following a strong run of performance and continued operational success, including both solid organic growth and successful merger and acquisition activity. Investment activities We run a concentrated portfolio of fewer than 50 holdings, maintaining a watchlist of around 200 quality moated companies that we would like to own when the timing and price are right (moated companies are those where we feel the business model is well protected from competition). We monitor our watchlist closely, waiting patiently for short-term issues, or disruptions, to create buying opportunities. During the review period, seven such opportunities presented themselves. The first was allergy immunotherapy specialist ALK- Abelló. ALK is a quality company that specialises in autoimmune therapy for dust mite and grass allergies. These treatments used to be injectable, which could result in sometimes fatal allergic reactions, but ALK has developed much safer, and easier to administer, pills. We see strong growth potential for the business, particularly if its distribution strategy plays out. We bought shares in AMS, the company mentioned above that develops and manufactures high-performance sensors. The stock had come under heavy selling pressure in light of issues surrounding the Samsung Galaxy ie exploding batteries. We saw this as a one-off issue for the company, which provided the disruption that allowed us to buy the stock at an attractive price. We added a position in Academedia, the largest independent education provider in Northern Europe. The company is the biggest provider of private education in the Nordic region, receives stable funding from state vouchers, and we think that as a large scale player, it should benefit from consolidation within the market. We invested in nanotech medical equipment business MagForce. The company s unique procedure injects coated iron nano-particles into tumours. The patient is then placed in a magnetic field, which causes the particles to heat and destroy the tumour from within. The technique has proven successful for deadly glioblastoma brain tumours, and is being developed for prostate cancer. We think this is an exciting, gamechanging company that has the potential to save lives. Also related to healthcare, we participated in the IPO (initial public offering) of private healthcare provider Medicover. This is the largest private healthcare provider in Poland, where it has operated for over twenty years, with patient data built up over that time providing clarity on costs. This makes optimising the business much easier than for a smaller, less established player. We also invested in Swiss pharma company Galenica, which spun off from Galenica Sante in March. The company s previous focus had been on drug development, but Galenica is now investing in over-the-counter branded healthcare, including health and beauty products. This company is delivering growth at high margins, and we consider it a safe business in a safe currency. Finally, we invested in UK-listed pet specialist Pets at Home. Founded in 1991, the company is the largest pet specialist in the UK, particularly in terms of non-food products and Advanced Nutrition. It is also increasingly focused on high levels of service, including veterinary practices and grooming, to strengthen its customer base. Conversely, we exited six of the fund s holdings during the period: medical packaging company Gerresheimer, which we had been reducing for some time, German specialist automotive parts producer ElringKlinger, Swedish credit management services and solutions business Intrum Justitia, testing business Eurofins Scientific, property company Shaftesbury and sensor technology firm Datalogic. Outlook We believe that improvements in economic growth, company fundamentals and earnings expectations have all helped to support investor sentiment in European smaller companies. Geopolitical risks still obviously exist from uncertainty in the US, including both 7 8

6 Investment review domestic and foreign policy, to the political climate in Europe, escalating tensions in North Korea to the unknown impact of Brexit. The difference is that investors seem to be more sanguine about these developments than they were a year ago, and generally appear to be more focused on fundamentals than newsflow. In general, though, the valuation case for European smaller companies is not as compelling as it was a year ago: the market appears to be overpaying for growth oriented companies, while many cyclical companies (that is, those that are sensitive to business cycles) now seem to be priced for a full economic upturn. This has led us to intensify our screening of companies with idiosyncratic characteristics, as well as companies undergoing internal restructuring, rather than relying on supportive external change. Against this backdrop, there remains an engrained belief that smallcap stocks are more volatile than large-caps, and are therefore more risky. For us, risk is the permanent impairment of capital we think that volatility is actually an opportunity. Because our process is built around performing deep research on companies within our watchlist (and then waiting for the right valuation before investing), we can calmly take advantage of volatility when a company s share price corrects disproportionally strongly to newsflow, having already carried out the necessary analysis upstream. We try to produce the highest level of returns for a calculated level of risk. In terms of the current portfolio, we remain confident in the quality of our holdings, and firmly believe that they will generate long-term value for the fund. As long-term investors, this is our focus, and we continue to be optimistic about their prospects. Michael Oliveros Fund manager An employee of M&G Limited which is an associate of M&G Securities Limited. * For the performance of each share class, please refer to the Long-term performance by share class table in the Fund performance section of the Annual Long Report and audited Financial Statements for M&G Investment Funds (1). Please note that the views expressed in this Report should not be taken as a recommendation or advice on how the fund or any holding mentioned in the Report is likely to perform. If you wish to obtain financial advice as to whether an investment is suitable for your needs, you should consult a Financial Adviser. Portfolio statement as at 31 August Holding 000 % % Oil & gas producers 1, ,750,509 Ophir Energy 1, Oil equipment, services & distribution 4, ,779 Schoeller Bleckmann Oilfield (formerly Schoeller-Bleckmann) 2, ,537 Técnicas Reunidas 2, Chemicals 8, ,167 Frutarom Industries 3, ,461 MagForce 4, Construction & materials 9, [a] 306,813 Arbonia (formerly AFG Arbonia-Forster-Holding AG) 4, ,610 Kingspan Group 3, ,535 PORR 2, Aerospace & defence 3, [a] 98,252 LISI 3, General industrials [a] Electronic & electrical equipment 6, ,037 Comet 4, ,406 EVS Broadcast Equipment 2, Industrial engineering 18, [a] 69,695 Cargotec 3, ,645 Deutz 4, ,959 Jungheinrich Pref. (non-voting) 3, ,815 Kongsberg Gruppen 3, ,684 Oerlikon 4, Industrial transportation 8, [a] 28,402 ID Logistics 3, ,990 Logista 4, Support services 12, [a] 116,035 CTS EVENTIM 4, ,980 DCC 3, ,568,358 Equiniti 4, Automobiles & parts [a] Food producers 3, ,397 Origin Enterprises 3, Household goods & home construction 10, [a] 2,225,839 Cairn Homes 3, ,079 Leifheit 6,

7 Investment review Portfolio statement (continued) as at 31 August Holding 000 % % Leisure goods 3, [a] 240,586 Thule Group 3, Personal goods 6, [a] 56,155 HUGO BOSS 4, ,641 Pandora 2, Healthcare equipment & services 7, [a] 530,024 Medicover 3, ,147 UDG Healthcare 3, Pharmaceuticals & biotechnology 9, ,093 ALK-Abelló B 3, ,212,077 Indivior 5, Food & drug retailers 3, [a] 92,602 Galenica 3, General retailers 18, ,424 AcadeMedia 3, ,790,164 Pets at home 3, ,266 TAKKT 4, ,339 WH Smith 7, Media Banks 3, ,447 Bank of Ireland 3, Non-life insurance 4, ,304 Jardine Lloyd Thompson Group 4, Real estate investment trusts Financial services 12, [a] 307,312 FinTech Group 5, ,706 GAM Holding (Regd.) 2, ,727 Mutares 2, ,582 MyBucks 1, Software & computer services 15, [a] 112,725 Criteo ADR 4, ,823 EMIS Group 3, ,821 Indra Sistemas 3, ,261 Sopra Steria (formerly Sopra) 4, Technology hardware & equipment 3, ,218 ams 3, Portfolio of investments 176, Portfolio statement (continued) as at 31 August Holding 000 % % AAA rated money market funds [b] 5, ,382,000 Northern Trust Global Fund - Sterling 5, Total portfolio 182, Net other assets / (liabilities) (1,383) (0.77) (0.10) Net assets attributable to shareholders 180, All securities are on an official stock exchange listing except where referenced. [a] The comparative sector weightings have been re-analysed to reflect changes to the sector classifications. [b] Uncommitted surplus cash is placed into AAA rated money market funds with the aim of reducing counterparty risk

8 Investment review Financial highlights Fund performance Top ten portfolio transactions for the year to 31 August 2017 Largest purchases 000 MagForce 4,237 AcadeMedia 3,579 Galenica Santé 3,531 ALK-Abelló 3,439 Pets at home 3,204 Medicover 3,121 WH Smith 2,620 ams 1,971 Arbonia (formerly AFG Arbonia-Forster-Holding AG) 1,950 TAKKT 1,901 Other purchases 17,278 Total purchases 46,831 Largest sales 000 Eurofins Scientific 3,661 Intrum Justitia 3,542 Datalogic 3,170 Gerresheimer Group 2,878 Chr. Hansen Holding 2,292 GFK 1,828 Shaftesbury 1,549 Thule Group 1,392 ElringKlinger 1,352 Criteo ADR 1,270 Other sales 12,538 Total sales 35,472 Purchases and sales exclude the cost and proceeds of AAA rated money market funds. Please note past performance is not a guide to future performance and the value of investments, and the income from them, will fluctuate. This will cause the fund price to fall as well as rise and you may not get back the original amount you invested. The following chart and tables show the performance for two of the fund s share classes Sterling Class A (Accumulation) shares and Sterling Class I (Accumulation) shares. We show performance for these two share classes because: The performance of the Sterling Class A (Accumulation) share is what most individuals investing directly with M&G have received. It has the highest ongoing charge of all the share classes. Performance is shown after deduction of this charge. All investors in the fund therefore received this performance or better. The performance of the Sterling Class I (Accumulation) share is the most appropriate to compare with the average performance of the fund s comparative sector. It is the share class used by the Investment Association in the calculation of the comparative sector s average performance. This share class is available for direct investment with M&G subject to minimum investment criteria, or via third parties who may charge additional fees. The performance shown takes the deduction of the ongoing charge for this share class into account but it does not take account of charges applied by any other party through which you may have invested. The fund is available for investment in different share classes, each with varying levels of charges and minimum investments; please refer to the Prospectus for M&G Investment Funds (1), which is available free of charge either from our website at or by calling M&G Customer Relations. For the specific performance tables of all share classes, please refer to the Annual Long Report and audited Financial Statements for M&G Investment Funds (1), which is available free of charge either from our website at or by calling M&G Customer Relations. Fund level performance Fund net asset value as at 31 August Fund net asset value (NAV) 180, , ,

9 Financial highlights Fund performance Performance since launch To give an indication of how the fund has performed since launch, the chart below shows total return of Sterling Class A (Accumulation) shares and Sterling Class I (Accumulation) shares. 1, September 1996 = 100, plotted monthly Chart date 1 September Sterling Class A (Accumulation) shares* Sterling Class I (Accumulation) shares* Sterling Class I (Accumulation) shares* Euromoney Smaller European Companies Index Sterling Class A (Accumulation) shares* Morningstar (IA) European Smaller Companies sector average* * Income reinvested Source: Morningstar, Inc. and M&G The fund s Sterling Class I (Accumulation) shares were launched on 3 August Performance data shown prior to this date is that of the fund s Sterling Class A (Accumulation) shares. To give an indication of how the fund has performed during the period the tables below show the performance of Sterling Class A (Accumulation) shares and Sterling Class I (Accumulation) shares. All Performance and charges percentages represent an annual rate except for the Return after operating charges which is calculated as a percentage of the opening net asset value per share (NAV). Dilution adjustments are only in respect of direct portfolio transaction costs. Sterling Class A Accumulation share performance The share class was launched on 30 September for the year to 31 August Change in NAV per share UK p UK p UK p Opening NAV Return before operating charges and after direct portfolio transaction costs Operating charges (6.61) (5.19) (4.66) Return after operating charges Distributions (0.86) (2.12) (1.46) Retained distributions Closing NAV Direct portfolio transaction costs UK p UK p UK p Costs before dilution adjustments Dilution adjustments [a] (0.12) (0.14) (0.12) Total direct portfolio transaction costs Performance and charges % % % Direct portfolio transaction costs [b] Operating charges Return after operating charges Historic yield Effect on yield of charges offset against capital Other information Closing NAV ( 000) 30,550 23,174 26,374 Closing NAV percentage of total fund NAV (%) Number of shares 6,349,972 5,685,714 6,634,714 Highest share price (UK p) Lowest share price (UK p)

10 Financial highlights Fund performance Financial highlights Operating charges and portfolio transaction costs Sterling Class I Accumulation share performance The share class was launched on 3 August for the year to 31 August Change in NAV per share UK p UK p UK p Opening NAV 1, , , Return before operating charges and after direct portfolio transaction costs Operating charges (20.06) (15.58) (14.02) Return after operating charges Distributions (21.71) (25.19) (18.38) Retained distributions Closing NAV 2, , , Direct portfolio transaction costs UK p UK p UK p Costs before dilution adjustments Dilution adjustments [a] (0.64) (0.74) (0.65) Total direct portfolio transaction costs Performance and charges % % % Direct portfolio transaction costs [b] Operating charges Return after operating charges Historic yield Effect on yield of charges offset against capital Other information Closing NAV ( 000) 8,745 6,335 4,374 Closing NAV percentage of total fund NAV (%) Number of shares 332, , ,531 Highest share price (UK p) 2, , , Lowest share price (UK p) 1, , , We explain below the payments made to meet the ongoing costs of investing and managing the fund, comprised of operating charges and portfolio transaction costs. Operating charges Operating charges include payments made to M&G and to providers independent of M&G: Investment management: Charge paid to M&G for investment management of the fund (also known as Annual Management Charge). Administration: Charge paid to M&G for administration services in addition to investment management any surplus from this charge will be retained by M&G. Oversight and other independent services: Charges paid to providers independent of M&G for services which include depositary, custody and audit. Operating charges do not include portfolio transaction costs or any entry and exit charges (also known as initial and redemption charges). The charging structures of share classes may differ, and therefore the operating charges may differ. Operating charges are the same as the ongoing charges shown in the Key Investor Information Document, other than where an estimate has been used for the ongoing charge because a material change has made the operating charges unreliable as an estimate of future charges. For this fund there is no difference between operating charges and ongoing charges figures, unless disclosed under the specific share class performance table. [a] In respect of direct portfolio transaction costs. [b] As a percentage of average net asset value

11 Financial highlights Operating charges and portfolio transaction costs Portfolio transaction costs Portfolio transaction costs are incurred by funds when buying and selling investments. These costs vary depending on the types of investment, their market capitalisation, country of exchange and method of execution. They are made up of direct and indirect portfolio transaction costs: Direct portfolio transaction costs: Broker execution commission and taxes. Indirect portfolio transaction costs: Dealing spread the difference between the buying and selling prices of the fund s investments; some types of investment, such as fixed interest securities, have no direct transaction costs and only the dealing spread is paid. Investments are bought or sold by a fund when changes are made to the investment portfolio and in response to net flows of money into or out of the fund from investors buying and selling shares in the fund. Portfolio transaction costs for the year to 31 August Average [a] Direct portfolio transaction costs [b] % % % % Broker commission Taxes Costs before dilution adjustments Dilution adjustments [c] (0.03) (0.04) (0.04) (0.04) Total direct portfolio transaction costs as at 31 August Average [a] Indirect portfolio transaction costs % % % % Average portfolio dealing spread [a] Average of first three columns. [b] As a percentage of average net asset value. [c] In respect of direct portfolio transaction costs. Please see the section above this table for an explanation of dilution adjustments. To protect existing investors, portfolio transaction costs incurred as a result of investors buying and selling shares in the fund are recovered from those investors through a dilution adjustment to the price they pay or receive. The table below shows direct portfolio transaction costs paid by the fund before and after that part of the dilution adjustment relating to direct portfolio transaction costs. To give an indication of the indirect portfolio dealing costs the table also shows the average portfolio dealing spread. Further information on this process is in the Prospectus, which is available free of charge on request either from our website at or by calling M&G Customer Relations

12 Notes 21

13 Contact Customer Relations* Write to us at:** M&G Securities Limited PO Box 9039 Chelmsford CM99 2XG Our website: us with queries: * For security purposes and to improve the quality of our service, we may record and monitor telephone calls. You will require your M&G client reference. Failure to provide this will affect your ability to transact with us. ** Please remember to quote your name and M&G client reference and sign any written communication to M&G. Failure to provide this may affect your ability to transact with us. Please note that information contained within an cannot be guaranteed as secure. We advise that you do not include any sensitive information when corresponding with M&G in this way. M&G Securities Limited is authorised and regulated by the Financial Conduct Authority and provides investment products. The company s registered office is Laurence Pountney Hill, London EC4R 0HH. Registered in England number _SR_311018