Fund managers: Greg Aldridge and Charles Anniss
The Fund’s prime objective is 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. Income is of secondary importance when investments are selected.
The M&G European Fund is a concentrated portfolio of between 40 and 60 holdings. It seeks to capitalise on compelling investment opportunities from across the European investment universe.
The fund managers adopt a bottom-up approach to stock selection, based on detailed fundamental research. Consistent with their investment philosophy, the portfolio has a growth bias. However, the managers do not define growth in the traditional sense that focuses on rapid growth in earnings or sales. Instead, their investment approach focuses on companies with scarce assets that give the businesses a competitive edge over their competitors, and thereby help them to generate sustainable returns above the cost of capital. By reinvesting in the business at attractive rates of return, the fundamental value of these companies should grow over time, thereby rewarding long-term investors.
The fund managers work closely with the risk management team to ensure that the primary driver of the portfolio’s risk is stock selection. Investors can expect a long-term, bottom-up investment approach with moderate turnover.
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