Expert fund managers research the markets and decide how much to invest in each type of asset, thereby making the asset allocation decision on behalf of their investors.
Past performance is not a guide to future performance. The value of 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.
Dynamic management is key
The right blend of asset classes at the right time
We believe that the greatest returns, in the long term, come from being invested in the right blend of asset classes at the right time. Studies have shown that it is this blend, or 'asset allocation', that is responsible for the lion’s share of investment returns in the long term.*
Spread your risk in changing markets
Markets never stand still and different asset classes can offer investment opportunities at different times. Choosing a multi-asset fund that is managed dynamically – or actively – is crucial to performance as it aims to ensure that your charity's money is invested in the right asset classes at the right times.
* Research by Ibbotson, Roger G. and Kaplan, Paul D., “Does Asset Allocation Policy Explain 40, 90, or 100 Percent of Performance?”, Copyright 2000, Financial Analysts Journal.
A unique approach
We believe that the investment philosophy we employ is unique to the M&G Episode Multi Asset Funds. The ‘episode’ approach is a proven, repeatable process that has the potential to turn investment opportunities into portfolio returns.
The ‘episode’ investment approach seeks to identify periods of time, or episodes, during which assets become under or overpriced. This occurs as a result of investors reacting emotionally to events rather than considering normal investment principles such as inflation or interest rates. Episodes can occur over short periods of time or several years.
Emphasis on risk management
Our fund managers seek to provide genuine diversification to limit risk in each portfolio. They dynamically manage a blend of assets to endeavour to meet the investment objectives of each fund.
While each fund manager bears responsibility for the management decisions of their portfolios, the group functions as a true team, continually sharing and testing investment ideas and assessing a wide variety of macroeconomic data.
Tried and tested philosophy
The team’s investment philosophy has been tried and tested throughout a set of crises in financial markets. We therefore believe that this philosophy is robust and has the ability to deliver attractive returns for your charity in a variety of market conditions.
Episode Income Fund
To find out more about our Episode Multi Asset funds please contact the M&G Charities team.
We are unable to give financial advice. If you are unsure about the suitability of your investment, speak to your financial adviser.