Episode Income Fund

ISIN
GB00B4054K09

Price (27.03.2017)
125.95

% Price Change
0.02

Fund objective and approach

Fund objective

To provide a high and rising level of income by investing in a mixed range of assets. Provided this can be achieved, the fund aims to grow capital over the long term (five years or more).

Investment policy

The fund has a flexible investment approach with the freedom to invest in different types of assets from anywhere in the world. The approach combines in-depth research to work out the value of assets over the medium to long term, with analysis of market reactions to events to identify investment opportunities. The fund invests in a range of assets, including company shares, bonds (loans to governments or companies that pay interest), warrants (financial contracts which allow the fund manager to buy stocks for a fixed price until a certain date), money market instruments (for example, debt due to be repaid within a year), cash and currencies. We may hold property indirectly. We may hold any of these assets indirectly by investing in other funds or through derivatives. Derivatives are financial contracts whose value is derived from other assets. We also use derivatives to meet the fund’s investment objective and to reduce risk and costs.

Investment approach

The fund aims to generate a high and rising level of income over time through investment in a diversified range of assets.

Subject to this, the fund aims to provide capital growth over the long term. The fund manager believes the best approach for achieving this lies in the flexible allocation of capital between asset classes, guided by a robust valuation framework. In particular, he seeks to respond where asset prices move away from a reasonable sense of 'fair' value due to investors reacting emotionally to events. He believes such episodes create opportunities because emotions should be less important than underlying fundamentals over the medium and long term. The fund will typically hold between 20-50% in equity, 40-80% in fixed income (including cash), and up to 20% in other assets (including diversified securities such as property shares, convertible bonds, preferred shares, etc). The fund will not employ net leverage, ie it may employ relative value positions but net long exposure will not exceed 100% of the fund value. A minimum of 70% of the fund will be exposed to sterling, though the fund manager will actively manage currency exposures to seek to enhance returns.

The Fund allows for the extensive use of derivatives

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. The level of any income earned by the fund will fluctuate. Past performance is not a guide to future performance. 

Source: Price: State Street. Performance: Morningstar. Performance figures are on a price to price basis with income reinvested. Performance figures may not reflect all relevant charges.

Please note that the Morningstar Category performance data in this tool where shown, is from the default Morningstar database, which contains all the share classes for each fund available across Europe, Asia and Africa. This can differ from the comparative sector data in M&G factsheets which is from the same database, but showing only the most appropriate share class to represent each fund, and for just those funds available in Europe. Neither Morningstar nor its Information Providers can guarantee the accuracy, completeness, timeliness, or correct sequencing of any of the Information on the Web site, including, but not limited to Information originated by Morningstar, licensed by Morningstar from Information Providers, or gathered by Morningstar from publicly available sources. There may be delays, omissions, or inaccuracies in the Information.

 

News

Fund Team

Steven Andrew

Steven Andrew - Fund manager

Steven Andrew joined M&G in 2005 as a member of the portfolio strategy & risk team, before moving to the Multi Asset team, where he helped to formulate asset allocation strategies for M&G's multi-asset fund range. In November 2010, Steven was appointed manager of the M&G Episode Income Fund. Three years later, he became manager of the M&G Income Allocation Fund upon its launch. Steven began his career at the Bank of England in 1987 and subsequently worked at F&C Asset Management and Merrill Lynch before joining M&G. He holds a BSc (Hons) degree in financial economics from the University of London.

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Maria Municchi

Maria Municchi - Deputy Manager

Maria Municchi is deputy manager of the M&G Episode Income Fund and M&G Income Allocation Fund. Maria initially joined M&G in 2009 and was part of the Multi Asset and Convertibles teams providing support as investment specialist. Before joining M&G, Maria worked at Barings and UBS Asset Management. She has an MSc in international management and finance and is a CFA charterholder.

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Christophe Machu

Christophe Machu - Investment specialist

Christophe Machu joined the Multi Asset and Convertibles teams as an associate investment specialist providing support for M&G's multi-asset fund range and the M&G Global Convertibles Fund in September 2014. He initially joined M&G in 2012 as a sales support in Paris before moving into the International Marketing team in London. Christophe has an MSc in risk and finance from EDHEC Business School.

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Ana Cuddeford

Ana Cuddeford - Investment specialist

Ana Cuddeford is the investment specialist covering M&G’s multi-asset fund range and the M&G Global Convertibles Fund. She initially joined M&G in December 2013 from FTSE Group, where she had helped execute their FTSE4 Good company engagement. Prior to that, Ana spent 16 years in equity sales, the last 11 of which were at financial group Citi. She is fluent in English, Spanish and Italian and has a good command of French. Ana graduated from the University of Wales, College of Cardiff with a BSc (Hons) in European community studies.

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Graziano Creperio - Investment specialist

Graziano Creperio joined the M&G Multi Asset team as an associate investment specialist providing support for the M&G multi-asset funds. He initially joined M&G in 2012 as a fund data analyst and was later promoted to senior data specialist. Prior to joining M&G, Graziano worked as a portfolio data analyst at Morningstar. He holds a MSc in management and a BA in economics from Bocconi University in Milan. He also studied at Babson College in Boston and Jiao Tong University in Shanghai.

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Ratings

Rating is at a share class level

3 Star Rating

Ratings as at 28/02/2017. The Morningstar Overall Rating. Copyright © 2017 Morningstar UK Limited. All Rights Reserved. The Morningstar Analyst Rating™. © 2017 Morningstar. All Rights Reserved. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Ratings should not be taken as recommendation.

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