Important fund objective changes

Funds with objective changes within the last ten years can be found in the table below.

 Fund  Event  Date  Previous objective
Asian Fund Objective change and name change from M&G South East Asia Fund 24 March 2006 The Fund’s sole objective is long term capital growth. It invests wholly or predominantly in a wide range of South-East Asian (including Australasian) securities. When not wholly invested as above, the Fund may also invest in other companies which are listed or trading within this area. The Fund will not, however, invest in Japanese securities. Income is not a consideration when investments are selected.
Asian Fund Objective change 1 March 2019 The fund aims to grow capital over five years or more.
Core investment: At least 80% of the fund is invested in the shares of companies based in Asia (excluding Japan) and Australasia.
Other investments: The fund also invests in the shares of companies anywhere in the world (except Japan). Typically, these are companies that conduct the majority of their business in Asia. Generally, less than 10% is held as cash or assets that can be turned into cash quickly.
Strategy in brief: The fund manager focuses on finding companies with the potential to improve their future profitability or the ability to sustain a high level of profitability over time. Constructing a portfolio of stocks with different profiles of profitability helps build a diversified portfolio with the potential to cope in different market conditions. The fund manager seeks companies whose future profitability is deemed to be undervalued by the market and looks to invest in companies whose corporate governance practices ensure the business is run in the interests of all shareholders.
Performance measurement: The fund is actively managed. The MSCI AC Asia Pacific ex Japan Index is a point of reference against which the performance of the fund may be measured.
Corporate Bond Fund  Objective change  1 September 2008  The Fund invests in sterling denominated fixed and variable rate securities, including corporate bonds and debentures with the aim of achieving a higher return from investment than would be obtainable in UK government fixed interest securities (i.e. gilts) of similar maturities. The Fund may, however, hold gilts where it is deemed appropriate. The investment manager has the power to use futures traded or dealt on an eligible derivatives market (currently being The London International Financial Futures and Options Exchange) for the purpose of hedging the capital value of the Fund against the risks of adverse movements in long term interest rates. More than 35% of the value of the property of the Fund may be invested in Government and other public securities issued or guaranteed by any of:

- the Government of the United Kingdom or of a Member State* other than the United Kingdom;

- the Government of Australia, Canada, Japan, New Zealand, Switzerland, USA;

- the African Development Bank, Asian Development Bank, Eurofima, European Economic Community, European Bank for Reconstruction and Development, European Coal and Steel Community, European Investment Bank, International Bank for Reconstruction and Development, International Financial Corporation.

* Member State: those countries which are members of the European Union or the European Economic Area at any given time.
Corporate Bond Fund  Objective change  25 May 2017 The Fund aims to achieve a higher total return (the combination of income and growth of capital) from investment than would be obtainable in UK government fixed interest securities (ie gilts) of similar maturities.
Dividend Fund Objective change 14 March 2011 The Fund invests mainly in a range of UK equities with the aim of achieving a steadily increasing income stream. The target yield is 33% higher than that of the FTSE All-Share Index but this may vary in the shorter term. Subject to this, the aim will be to maximise total return (the combination of income and growth of capital).
Emerging Markets Bond Fund Policy change 19 April 2012 The Fund aims to maximise total return (the combination of income and growth of capital).

The Fund primarily invests in debt instruments issued by emerging market nations and their agencies. The Fund’s exposure to debt instruments may be gained through the use of derivatives. There are no restrictions on the currency in which debt instruments held in the portfolio may be issued, and accordingly the Fund may carry a greater than usual currency risk, which will not normally be hedged. The Fund may also invest in other assets including collective investment schemes, other transferable securities (including other debt instruments), cash and near cash, deposits, warrants, money market instruments and other derivative instruments.
Emerging Markets Bond Fund Objective change 1 September 2008 The Fund aims to maximise total return primarily through investment in bonds issued by emerging market nations* and their agencies, though the Fund can also hold a proportion of its portfolio in other debt instruments. There are no restrictions on the currency in which bonds held in the portfolio may be issued, and accordingly the Fund may carry a greater than usual currency risk, which will not normally be hedged.
More than 35% of the value of the property of the Fund may be invested in Government and other public securities issued or guaranteed by any of:

- the Government of the United Kingdom or of a Member State** other than the United Kingdom;

- the Government of Australia, Canada, Japan, New Zealand, Switzerland, USA;

- the African Development Bank, Asian Development Bank, Eurofima, European Economic Community, European Bank for Reconstruction and Development, European Coal and Steel Community, European Investment Bank, International Bank for Reconstruction and Development, International Financial Corporation.

*Currently the Authorised Corporate Director regards the following countries as emerging market nations: Argentina, Brazil, Bulgaria, Chile, China, Colombia, Croatia, Ecuador, Egypt, El Salvador, Greece, Hungary, Indonesia, Ivory Coast, Jordan, Korea, Lebanon, Malaysia, Mexico, Morocco, Nigeria, Pakistan, Panama, Peru, Philippines, Poland, Qatar, Romania, Russia, Slovakia, South Africa, Thailand, Turkey, Ukraine, Uruguay, Venezuela.
Episode Allocation Fund  Objective change and name change

Note – Fund name change from M&G Episode Balanced Fund on 3 November 2014 (formerly M&G Cautious Multi Asset Fund). No change to the objective on this date.
22 August 2012 The Fund invests mainly in securities, fixed income assets, warrants, money market instruments, deposits, cash, near cash and property via collective investment schemes and, with the exception of property, by investing directly in these assets. The Fund may also invest directly in derivative instruments for the purposes of investment and efficient portfolio management. The Fund will invest no more than 60% of its portfolio in equities.
Episode Allocation Fund 
Objective change  31 August 2018
The Fund’s objective is to maximise total return (the combination of income and growth of capital) through investment in a diversified range of asset types. Subject to this, the Fund aims to grow income in the long term.
Episode Growth Fund Objective change 16 January 2007 The Fund is an actively managed fund of funds investing in a range of M&G’s UK equity, international equity and fixed interest authorised collective investment schemes. Its objective is to maximise long term total return (the combination of income and growth of capital).
Episode Growth Fund Objective change and name change from M&G Managed Fund  22 August 2012  The Fund invests mainly in securities, fixed income assets, warrants, money market instruments, deposits, cash, near cash and property mainly via collective investment schemes, but, with the exception of property, may invest directly in these assets. The Fund may also invest directly in derivative instruments for the purposes of investment and efficient portfolio management.
Episode Growth Fund  Objective change
31 August 2018 
The Fund’s objective is to maximise total return (the combination of income and growth of capital).
Episode Income Fund Objective change and name change from M&G Income Multi Asset Fund  22 August 2012  The Fund invests in securities, fixed income assets, warrants, money market instruments, deposits and cash. Exposure to these assets, and to property, may also be gained via collective investment schemes and derivatives. The Manager may seek to minimise currency risk through a combination of diversification and hedging. Derivatives may also be used for efficient portfolio management purposes.
Episode Income Fund Objective change  25 May 2017  The Fund’s objective is 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.
European Corporate Bond Fund  Objective change  1 September 2008  The Fund invests mainly in investment grade corporate bonds denominated in any European currency, as well as in European currency denominated high yield corporate bonds and government and other public securities. The Fund aims to maximise total return (the combination of income and growth of capital) while generating a higher level of income than that from European government bonds of similar maturities.
European Corporate Bond Fund  Objective change  25 May 2017  As a result of the Swiss National Bank removing the currency peg since the balance sheet date, 31 December 2014, the Net Asset Value per share of the Swiss franc share classes has increased by approximately 12% to 12 February 2015.
European High Yield Bond Fund  Objective change  1 September 2008  The Fund aims to maximise total return while providing investors with a high level of income, though this may vary. The portfolio may consist of bonds denominated in any European currency. The Fund may invest in corporate bonds as well as government and other public securities. While the investment manager has the power to hedge the currency risk for UK investors, the Fund will normally be managed so as to give investors exposure to European currencies. More than 35% of the value of the property of the Fund may be invested in Government and other public securities issued or guaranteed by any of:

- the Government of the United Kingdom or of a Member State* other than the United Kingdom;

- the Government of Australia, Canada, Japan, New Zealand, Switzerland, USA;

- the African Development Bank, Asian Development Bank, Eurofima, European Economic Community, European Bank for Reconstruction and Development, European Coal and Steel Community, European Investment Bank, International Bank for Reconstruction and Development, International Financial Corporation.

* Member State: those countries which are members of the European Union or the European Economic Area at any given time.
European High Yield Bond Fund   Objective change  25 May 2017  The Fund aims to maximise total return (the combination of income and growth of capital) while generating a high level of income.
European Select Fund Objective change and name change from M&G European Fund  6 November 2015  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.
European Select Fund Objective change 1 March 2019 The fund aims to provide a combination of capital growth and income, net of the Ongoing Charge Figure, that is higher than the FTSE World Europe ex UK Index over any five-year period.
Core investment: At least 80% of the fund is invested directly in the shares of companies that are based, or do most of their business, in Europe (excluding the UK), across any sector and of any size. The fund usually holds shares in fewer than 50 companies.
Strategy in brief: The fund employs a disciplined approach to analyse and select each company. The strategy invests in companies with sustainable competitive advantages that have the opportunity to reinvest their capital in projects that can deliver the highest rates of return. The fund manager seeks to identify companies that generate rising cashflows, and primarily allocate them to grow their businesses and dividends.
Fund of Investment Trust Shares  Objective change  30 January 2018  The fund aims to grow capital by investing in the shares of investment trust companies based in the UK and overseas.
Core investment:Typically, the fund is at least 80% invested in the shares of investment trust companies listed in the UK. The fund typically holds these assets directly.
Other investments: Generally, less than 10% is held as cash or assets that can be turned into cash quickly.
Strategy in brief: The fund looks to provide access to a wide spread of investment trust companies that are often cheaper than their true worth. The fund manager invests in those areas and investment vehicles that he believes can deliver the most growth over five years or more. The selection of stocks is based on the investment philosophy and objective of the underlying holdings and the ability of each manager to deliver on them, as well as the valuation of the company shares. Income is less important when choosing investments and the dividend yield can be expected to be slightly less than the average for investment trust companies.  
Gilt & Fixed Interest Income Fund Objective change 1 September 2008 The Fund is designed to provide a high and secure income, with stability of capital. The Fund invests in short, medium or long-dated government stocks according to M&G’s view at any given moment of the likely course of interest rates and trend of the gilt-edged market. The Fund is able to invest a proportion of the assets in dated debenture or loan stocks, if these provide good relative value. More than 35% in value of the property of the Fund consists of government and other public securities issued or guaranteed by the Government of the United Kingdom (including the Scottish Administration, the Executive Committee of the Northern Ireland Assembly and the National Assembly of Wales) and it is intended that this should continue to be the case.
Gilt & Fixed Interest Income Fund Objective change 26 June 2017 The Fund is designed to provide a secure income with stability of capital consistent with investment in gilts over a rolling three to five year period. There is no guarantee that the Fund will achieve its objective over this, or any other, period. The income distributions and the value of your investment may rise and fall and investors may not recoup the original amount they invested.
Global Convertibles Fund Objective change 1 March 2019 The fund aims to provide income and capital growth over five years or more by investing in convertibles from around the world.
Core investment: Typically, at least 80% of the fund is invested in convertibles issued by companies from anywhere around the world, including emerging markets*. The fund also holds company shares in combination with bonds in order to replicate the exposure to convertibles when a direct holding is not available. Company shares are also held to adjust the technical characteristics of convertibles, such as making them more sensitive to changes in the price of the shares into which they convert.
Other investments: Generally, less than 10% is held as cash or assets that can be turned into cash quickly.
Use of derivatives: Derivatives may be used to gain exposure to the fund’s core investments and to reduce risks and costs.
Strategy in brief: The fund manager aims to take advantage of the special characteristics of convertibles, which can participate more in share price increases than falls. The fund manager has the freedom to decide which investments to hold in the fund, based on an assessment of company-specific factors and technical characteristics of convertibles. Spreading investments across issuers, industries and countries is an essential element of the fund’s strategy and the manager is assisted in the selection of individual bonds by an in-house team of analysts.
Performance measurement: The fund is actively managed. The Thomson Reuters Global Focus Convertible Bond Index is a point of reference against which the performance of the fund may be measured.
* Emerging market countries are defined as those included within the MSCI Emerging Markets Index and/or those included in the World Bank’s definition of developing economies, as updated from time to time.
Glossary terms
Bonds: Loans to governments and companies that pay interest.
Convertibles: Bonds issued by companies that usually pay a set rate of interest and which can be exchanged for predetermined amounts of company shares.
Derivatives: Financial contracts whose value is derived from other assets.
Global Dividend Fund Objective change 25 May 2017 The Fund aims to deliver a dividend yield above the market average, by investing mainly in a range of global equities. The Fund aims to grow distributions over the long term whilst also maximising total return (the combination of income and growth of capital).
Global Select Fund Objective change and name change from M&G Global Growth Fund (formerly M&G International Growth Fund) 19 September 2008 The Fund invests in a wide range of international equities (excluding UK) with the sole objective of capital growth. The geographical split of the portfolio will vary according to market conditions.
Global Select Fund Objective change 17 November 2017 The fund aims to provide income and capital growth over five years or more by investing mainly in a range of company shares from anywhere in the world.
Global Government Bond Fund
Objective change

Name change from M&G International Sovereign Bond Fund on 9 August 2014. No change to the objective on this date.
1 September 2008  The Fund aims to maximise total return through investment in a portfolio of high grade fixed interest (including floating rate) securities denominated in non-sterling currencies. The portfolio will primarily consist of sovereign debt securities denominated in the currencies of the major industrialised nations, with the exception of the UK. While the investment manager has power to hedge the currency risk for UK investors, the Fund will normally be managed so as to give exposure to non-sterling currencies.
More than 35% of the value of the property of the Fund may be invested in Government and other public securities issued or guaranteed by any of:

- the Government of the United Kingdom or of a Member State other than the United Kingdom; 

- the Government of Australia, Canada, Japan, New Zealand, Switzerland, USA; 

- the African Development Bank, Asian Development Bank, Eurofima, European Economic Community, European Bank for Reconstruction and Development, European Coal and Steel Community, European Investment Bank, International Bank for Reconstruction and Development, International Financial Corporation. 
Global Government Bond Fund
Objective change and name change from M&G International Sovereign Bond Fund 1 July 2014 The Fund aims to maximise total return (the combination of income and growth of capital) through investment in a portfolio of investment grade debt instruments.
Global High Yield Bond Fund
Objective change

Note - Name change from M&G High Yield Corporate Bond Fund on 8 August 2014. No change to the objective on this date. 
1 September 2008  The Fund invests predominantly in higher yielding fixed and variable rate securities, including corporate bonds and debentures. The Fund is designed to maximise total return while generating a high level of income. In addition to sterling denominated securities, the portfolio may include gilts and securities denominated in other European currencies, US dollars or yen, should the investment managers deem these to be appropriate investments. The sterling based nature of the investor base will be considered at all times. The investment manager has the power to use futures traded or dealt on eligible derivatives markets (currently being The London International Financial Futures and Options Exchange) for the purpose of hedging the capital value of the Fund against the risks of adverse movements in long term interest rates. Any currency exposures within the Fund may be managed by forward currency hedges into sterling. 
Global High Yield Bond Fund Objective change 25 May 2017 The Fund is designed to maximise total return (the combination of income and growth of capital) while generating a high level of income.
Global Macro Bond Fund Objective change and name changed from M&G Global Managed Bond Fund 16 January
2007
The Fund is an actively managed fund of funds investing in M&G’s wide range of fixed interest authorised collective investment schemes. The Fund is designed to maximise total return (the combination of income and growth of capital) while providing a significant level of income, though this may vary.
Global Select Fund Objective change and name changed from M&G Global Growth Fund 6 November 2015 The Fund will invest globally (including the UK) in the equities of companies across a wide range of geographies, sectors and market capitalisations. Income is of secondary importance to capital growth when investments are selected.
Global Recovery Fund Objective and name change from M&G International  Specialist Equity Fund 6 November 2015 The fund aims to maximise long term capital growth. Income is not a consideration
Global Recovery Fund Objective change 1 March 2019 The fund aims to grow capital over five years or more. Income is not a consideration.
Core investment: At least 80% of the fund is invested in the shares of companies from around the world.
Other investments: Generally, less than 10% is held as cash or assets that can be turned into cash quickly.
Strategy in brief: The fund's focus is on companies which, at the time of investment, the fund manager believes are either out of favour with the market, or whose future prospects are undervalued by the market, but have the potential to restore themselves to health. Companies held in the fund are expected to move through a recovery cycle over three to five years. The fund may invest across a wide range of countries, sectors and company sizes. The fund manager has a relatively simple investment approach, focusing on cashflow and management’s strategy for recovery within a company. Constructive dialogue with company management is therefore a key part of the investment process.
Performance measurement: The fund’s performance is measured against the MSCI ACWI Index.
Global Themes Fund
Objective and name change from M&G Global Basics Fund
17 November 2017
The fund aims to grow capital over five years or more.
Core investment: At least 70% of the fund is invested in the shares of companies from anywhere in the world that operate in primary industries (such as mining and agriculture) and secondary industries (such as manufacturing), and also in companies that service these industries.
Other investments: The fund may also invest in the shares of companies from other types of businesses. Generally, less than 10% is held as cash or assets that can be turned into cash quickly.
Strategy in brief: The fund manager focuses on shares in companies that operate in primary industries (such as mining and agriculture) and secondary industries (such as manufacturing), and also in companies that service these industries. The emphasis is to identify and exploit investment themes that are likely to be the key long-term drivers of growth and select those companies best equipped to benefit from these themes. The fund manager follows a high-conviction global equity strategy which seeks to deliver long-term capital growth.
Index-Linked Bond Fund Objective change and name change from M&G Real Yield Fund 1 September 2008 The Fund aims to secure the value of capital and income from the effects of inflation, with a long term total return in excess of any upward movement in the UK Retail Prices Index. The portfolio will normally focus on index linked gilts, though may contain other securities consistent with this aim. Non-sterling denominated securities may be held and, if deemed appropriate by the investment manager, the associated currency risks hedged. More than 35% of the value of the property of the Fund may be invested in Government and other public securities issued or guaranteed by any of:

- the Government of the United Kingdom (including the Scottish Administration, the Executive Committee of the Northern Ireland Assembly and the National Assembly of Wales) or of a Member State other than the United Kingdom;

- the Government of Australia, Canada, Japan, New Zealand, Switzerland, USA;

- the African Development Bank, Asian Development Bank, Eurofima, European Economic Community, European Bank for Reconstruction and Development, European Coal and Steel Community, European Investment Bank, International Bank for Reconstruction and Development, International Financial Corporation.
Index-Linked Bond Fund Objective change 26 June 2017 The Fund aims to secure the value of capital and income from the effects of inflation over a rolling five year period or longer with a total return consistent with investment in index-linked bonds. There is no guarantee that the Fund will achieve its objective over this, or any other, period. The income distributions and the value of your investment may rise and fall and investors may not recoup the original amount they invested.
Japan Fund Objective change 1 March 2019 The fund aims to grow capital over five years or more by investing in a wide range of Japanese company shares. Income is not a consideration when choosing investments.
Core investment: At least 80% of the fund is invested in the shares of companies that are domiciled, or conducting the major part of their economic activity, in Japan.
Strategy in brief: The fund manager selects shares in Japanese companies across a range of industries and company sizes. The focus is on stocks where the fund manager believes the share price is not fully valuing the company's sustainable earnings over the medium to long term. The fund manager applies disciplined and rigorous fundamental analysis during the selection process to ensure a high level of conviction around the valuation for each of the companies held in the fund. The fund usually holds less than 50 companies with a typical holding period of three to five years.
Performance measurement: The fund is actively managed. The MSCI Japan Index is a point of reference against which the performance of the fund may be measured.
Japan Smaller Companies Fund
Objective change
24 April 2019
The fund aims to grow capital over five years or more by investing wholly or predominantly in the shares of smaller Japanese companies.
Core investment: At least 80% of the fund is invested in the shares of smaller companies that are domiciled, or conducting the major part of their economic activity, in Japan.
Other investments: When not wholly invested as above, the fund may invest in medium and larger companies to enhance its liquidity (ability to raise cash quickly).
Strategy in brief: The fund invests in the shares of companies that make up the bottom third of all publicly listed companies in Japan, in terms of their stockmarket value. The fund manager selects stocks from across a wide range of industries. The focus is on stocks where the fund manager believes the share price is not fully valuing the company's sustainable earnings over the medium to long term. The fund manager applies disciplined and rigorous fundamental analysis during the selection process to ensure a high level of conviction around the valuation for each of the companies held in the fund. The fund usually holds less than 50 companies with a typical holding period of three to five years.
Performance measurement: The fund is actively managed. The Russell Nomura Mid-Small Cap Index is a point of reference against which the performance of the fund may be measured.
Managed Growth Fund Objective change 16 January 2007 The Fund is an actively managed fund of funds investing in M&G’s range of authorised collective investment schemes. Its sole objective is to achieve long term capital growth. The Fund may have significant holdings in funds investing overseas.
Managed Growth Fund
Objective change  31 August 2018
The Fund’s objective is to achieve long term capital growth.
North American Dividend Fund  Objective change and name change from M&G American Fund  28 April 2015  The Fund’s objective is long term capital growth through investment wholly or mainly in securities of North American (including Canadian) issuers. When not wholly invested as above, it may only invest in companies which are listed, registered or trading within North America.
North American Dividend Fund  Objective change (Formerly M&G American Fund) 24 March  2006  The Fund's sole objective is long term capital growth from a well spread portfolio of North American investments, predominantly in larger companies. It may also invest in Canada, and in other companies which are listed, registered or trading within North America. Income is not a consideration when investments are selected. 
North American Value Fund Objective change 1 March 2019 The fund aims to grow capital over five years or more by investing in the shares of North American companies that the fund manager deems to be undervalued.
Core investment: At least 80% of the fund is invested in the shares of companies based in North America.
Strategy in brief: The fund employs a ‘value’ strategy, that is, investing in cheap, out-of-favour companies whose share price, in the manager’s view, does not reflect the underlying value of the business. Stocks are selected on the basis of their individual merits, through a combination of value-focused screening and qualitative assessment.
Performance measurement: The fund is actively managed. The S&P 500 Index is a point of reference against which the performance of the fund may be measured.
Pan European Dividend Fund Objective change 25 May 2017 The Fund aims to deliver a dividend yield above the market average, by investing mainly in a range of European equities. The Fund aims to increase distributions over the long term whilst also maximising total return (the combination of income and growth of capital).
Pan European Select Fund Objective change and name change from M&G Pan European Fund 6 November 2015 The Fund invests wholly or mainly in European (including UK) companies. The Fund may also invest in companies outside Europe but only when these companies derive the majority of their income from European activity. The objective is to maximise long term total return (the combination of income and growth of capital).
Pan European Select Fund Objective change 17 November 2017 The fund aims to provide capital growth and income over five years or more by investing mainly in a range of company shares from across Europe, including the UK.
Pan European Select Smaller Companies Fund Objective and fund name change from European Smaller Companies Fund 25 May 2018 Core investment: At least 70% of the fund is invested in the shares of companies that make up the bottom third of all publicly listed firms in Europe, in terms of their stockmarket value.
Other investments: The fund also invests in medium and larger companies to enhance its liquidity (its ability to raise cash quickly).
Strategy in brief: The fund manager invests in the shares of companies deemed to be of quality and with sustainable business models, where an element of change is helping to drive their value, and short-term issues have created attractive buying opportunities. The fund manager keeps the fund concentrated, generally holding fewer than 50 well-understood stocks, with a typical holding period of three to five years. The fund may invest across a wide range of industries. The fund manager maintains a balance of stocks with different risks and rewards to build a fund that has the potential to cope in a variety of market conditions. Income is not a top priority when choosing investments.
Recovery Fund Objective Change 28 November 2005 The Fund primarily invests in a diversified range of companies which are out of favour, in difficulty or whose future prospects are not fully recognised by the market. The sole aim of the Fund is capital growth. There is no particular income yield target.
Recovery Fund Objective change 1 March 2019 The fund aims to grow capital over five years or more by investing predominantly in the shares of companies that, at the time of investment, are out of favour with the stockmarket, and where the fund manager believes a good management team is making concerted efforts to turn the business around.
Core investment: At least 80% of the fund is invested in the shares of companies. Currently these are predominantly UK-listed companies.
Other investments: Generally, less than 10% is held as cash or assets that can be turned into cash quickly.
Strategy in brief: The fund invests in those businesses whose problems are solvable and temporary rather than structural in nature, and which are expected to move through a recovery cycle. This is a relatively simple investment approach focusing on three key factors: people, strategy and cashflow. Developing a constructive dialogue with company management is fundamental to the investment process. The fund manager takes a long-term view with a typical holding period of five years or more.
Performance measurement: The fund is actively managed. The FTSE All-Share Index is a point of reference against which the performance of the fund may be measured.
Short Dated Corporate Bond Fund Objective change (formerly M&G High Interest Fund) 1 September 2008  Designed to provide income with stability of capital by investing in fixed interest securities which fit the purposes of the Scheme. These may include (but are not restricted to) floating rate notes, gilts, Treasury Bills and other instruments traded on the London Discount Market. More than 35% of the value of the property of the Fund may be invested in government and other public securities issued by the Government of the United Kingdom (including the Scottish Administration, the Executive Committee of the Northern Ireland Assembly and the National Assembly of Wales). The investment manager will hedge the property of the Scheme against fluctuations in price as and when they consider it appropriate with a view to achieving stability of capital. When entering into hedging, transactions are likely to be by way of traded futures and options although over-the-counter transactions may also be used. 
Smaller Companies Fund Objective Change 30 January 2018 To provide capital growth by investing in the shares of smaller UK companies. Income is of secondary importance when choosing investments and the fund’s yield (annual income distributed as a percentage of the share price) can be expected to be less than that of the FTSE All-Share Index.
Short Dated Corporate Bond Fund  Objective change 13 March 2018
Objective: The fund aims to provide income with stability of capital over three to five years. There is no guarantee that the fund will achieve this objective over any period. The income distributions and the value of your investment may rise and fall and you may not get back the amount you originally invested.
Core investment: At least 70% of the fund is invested in bonds. Typically, these bonds are issued by companies due to be repaid within three years and floating rate notes. The fund holds these assets directly and through derivatives.
Other investments: The fund also invests in bonds issued by governments (usually of developed countries) and high yield bonds. In some market conditions, the fund may have a high proportion invested in liquid assets (that is, assets that are easy to sell, such as cash).
Use of derivatives: Derivatives may be used to gain exposure to the fund’s core and other investments, to reduce risks and costs and to manage the impact of changes in currency exchange rates on the fund’s investments.
Strategy in brief: Credit research is at the heart of the fund's investment process. The fund is well diversified and maintains a short duration, or low sensitivity to changes in interest rates, in order to minimise the impact of interest rate movements on the fund's capital value. The fund manager believes this can best be achieved by selecting bonds that pay a variable rate and bonds that have a short repayment date.
Strategic Corporate Bond Fund Objective change.

Note - Since 31 August 2009 a standalone OEIC (formerly part of Investment Funds (1))
31 August 2009 The Fund aims to maximise total return (the combination of income and growth of capital) through investment predominantly in investment grade corporate bonds, but may invest in other debt instruments, including higher yielding corporate bonds, government debt and convertible and preference stocks, as well as money market instruments and equities.
UK Income Distribution Fund
Objective change and name change from M&G Extra Income Fund
16 December 2016
To deliver a high and rising income stream by investing at least 70% of the Fund in the shares of UK companies. The Fund targets a yield (annual income distributed as a percentage of the share price) that is 50% higher than that of the FTSE All-Share Index, but this may vary in the short term. The level of income provided may also vary over time. Secondary to this, the Fund aims to grow capital
UK Select Fund Objective change and name change from M&G UK Growth Fund 6 November 2015 The Fund invests principally in the equities of UK companies with high growth potential with the sole objective of capital growth. The Fund may at any time be concentrated in a limited number of equities. Income considerations are ignored.
UK Select Fund Objective change 1 March 2019 The fund aims to grow capital over five years or more by investing predominantly in the shares of companies that, at the time of investment, are out of favour with the stockmarket, and where the fund manager believes a good management team is making concerted efforts to turn the business around.
Core investment: At least 80% of the fund is invested in the shares of companies. Currently these are predominantly UK-listed companies.
Other investments: Generally, less than 10% is held as cash or assets that can be turned into cash quickly.
Strategy in brief: The fund invests in those businesses whose problems are solvable and temporary rather than structural in nature, and which are expected to move through a recovery cycle. This is a relatively simple investment approach focusing on three key factors: people, strategy and cashflow. Developing a constructive dialogue with company management is fundamental to the investment process. The fund manager takes a long-term view with a typical holding period of five years or more.
Performance measurement: The fund is actively managed. The FTSE All-Share Index is a point of reference against which the performance of the fund may be measured.