Episode Income Fund

ISIN
GB00B4054K09

Price (06.12.2016)
121.00

% Price Change
0.67

Fund objective and approach

Fund objective

To provide a high and rising level of income through investment in a diversified range of assets. Subject to this, the Fund aims to grow capital over the long term (that is, time periods of five years or more).

Investment policy

The Fund has a flexible investment approach, with the freedom to invest in different types of assets. The approach combines in-depth research to determine the value of assets over the medium to long term, with analysis of investors’ emotional reaction to events to identify investment opportunities. The Fund invests in a range of assets from around the world, including company shares, fixed income securities, warrants (allowing the fund manager to buy stocks for a fixed price until a certain date), money market instruments (for example, debt securities with maturities of one year or less), cash, currencies and property. These assets may be held indirectly by investing in other funds or through derivatives, which are financial instruments whose value is linked to the expected future price movements of an underlying asset. Property may only be held indirectly. Derivatives are used to meet the Fund’s investment objective and to reduce risk, minimise costs and generate additional capital and/or income.

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

  • Steven Andrew, Fund Manager // 16/11/2015

    The Retirement Story: 5 years on

    The Retirement Story: 5 years on

    Five years on, Fund Manager Steven Andrew revisits the “generation gap” and explores an environment potentially more challenging for prospective retirement returns.

      Watch the video

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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Tony Finding

Tony Finding - Deputy Manager

Tony Finding joined PPM (now M&G) in 1997 as an economist. Subsequently, he took responsibility for the generation of views on yield curve and foreign exchange trading opportunities. In 2001, Tony developed his expertise in credit and exotic fixed interest securities by spending time seconded to Prudential's US-based investment management team. Tony has been in his current role as a member of the multi asset team since 1999. In January 2011, Tony was appointed co-manager of the M&G Episode Allocation Fund and the M&G Dynamic Allocation Fund. He has a BSc in economics from the LSE and is also a CFA charterholder.

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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 31/10/2016. Copyright © 2015 Morningstar UK Limited. All Rights Reserved. Ratings should not be taken as a recommendation.

© 2016 Morningstar. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Morningstar Rating past performance is no guarantee of future results. For more detailed information about Morningstar Rating, including its methodology, please go to http://corporate.morningstar.com/US/documents/MethodologyDocuments/MethodologyPapers/MorningstarFundRating_Methodology.pdf For more detailed information about Morningstar's Analyst Rating, including its methodology, please go to http://corporate.morningstar.com/us/documents/MethodologyDocuments/AnalystRatingforFundsMethodology.pdf

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