M&G (Lux) Japan Fund

JPY Class A – Accumulation shares

Monthly Fund Review as at 30 April 2025
Marketing Communication - for investment professionals only

Highlights Key information

◾ Whilst Japanese equities finished April close to where they started it, what happened in between was nothing short of Fund manager(s) Carl Vine
breathtaking. Following so-called “Liberation Day”, the Japan market slumped nearly 20% between late March and 9 Fund manager tenure from 20 September 2019
April. At this point, US President Trump paused with his tariff narrative and markets experienced a meaningful recovery. Deputy fund manager(s) Dave Perrett
◾ Key detractors to fund performance included Mitsubishi UFJ Financial, Orix and Toray Industries. Conversely, key
ISIN LU1797807986
contributors included Toyota Industries, NEC and East Japan Railway. In late April, the market learned that Akio Toyoda,
chairman of Toyota Motor, is looking to bid for Toyota Industries. The car group’s current structure is one of Japan’s Launch date of fund 26 October 2018
largest parent-child distortions and it’s comforting to see a proposed resolution. As a top-20 shareholder, we eagerly Launch of share class 06 November 2018
await further details. Fund size (millions) JPY 141,784.19
◾ During the month, we initiated some new positions in Nintendo, Dai-ichi Life and Mitsubishi Heavy Industries. We have Fund type SICAV
also swapped our position in Yaskawa Electric to Fuji Electric and TDK. Benchmark MSCI Japan Net Return Index
Sector Morningstar Japan Large-Cap Equity sector
The main risks associated with this fund Number of companies 58
Portfolio turnover over 12 months 52.30%
The value and income from the fund's assets will go down as well as up. This will cause the value of your investment to fall
as well as rise. There is no guarantee that the fund will achieve its objective and you may get back less than you originally SFDR Article Classification 8
invested. Recommended Holding Period 5 years
The fund holds a small number of investments, and therefore a fall in the value of a single investment may have a greater
‘Manager tenure’ includes the period when managing an equivalent UK-authorised OEIC. Please see ‘Important
impact than if it held a larger number of investments. information’ at the end of this document for further details.
The fund can be exposed to different currencies. Movements in currency exchange rates may adversely affect the value
of your investment. Charges
Investing in this fund means acquiring units or shares in a fund, and not in a given underlying asset such as building or
shares of a company, as these are only the underlying assets owned by the fund. Maximum entry charge 5.00%
ESG information from third-party data providers may be incomplete, inaccurate or unavailable. There is a risk that the Management fees and other costs 1.73%
investment manager may incorrectly assess a security or issuer, resulting in the incorrect inclusion or exclusion of a Transaction costs 0.28%
security in the portfolio of the fund.
Further risk factors that apply to the fund can be found in the fund's Prospectus.
Risk characteristics
As at 30/04/2025 Fund
Alpha (%) 1.40
Information ratio 0.21
Sharpe Ratio 0.53
Historic tracking error (%) 4.99
Beta 0.93
Standard deviation (%) 12.50
Forecast tracking error (active risk, %) 2.57
Active share (%) 57.20

Fund ratings as at 30 April 2025

Morningstar Medalist Rating™ Analyst-Driven %
100
Data Coverage %
100
Overall Morningstar rating QQQQ
Source of Morningstar ratings: Morningstar

Ratings should not be taken as a recommendation.

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 Past performance is not a guide to future performance.
Annual performance (%)

40.0
28.1 28.6
23.6 24.2
19.9 20.7 18.5 20.1
20.0 13.4 10.5 10.3
7.5 8.8 9.3 6.1
0.4
0.0
-4.2 -0.4
-4.4 -4.5
-20.0
-14.9
-22.0
-40.0

-60.0
YTD 2024 2023 2022 2021 2020 2019 2018 2017 2016 2015
Fund Benchmark

Performance over 10 years

260.0
Indexed to 100

220.0

180.0

140.0

100.0

60.0
Apr 15 Dec 17 Dec 19 Dec 21 Dec 23 Apr 25

JPY A Accumulation (202.4)

Benchmark (204.5)

Fund performance (10 years)

1 month 3 months YTD to QTR end YTD 1 year 3 years p.a. 5 years p.a. 10 years p.a.
JPY A Accumulation -0.4% -6.2% -4.0% -4.4% -4.0% 15.0% 19.0% 7.3%
Benchmark 0.4% -4.2% -4.5% -4.2% -1.9% 14.0% 15.2% 7.4%
Sector 0.0% -4.4% -4.0% -4.0% -1.3% 13.0% 14.5% 6.8%
The benchmark is a comparator against which the fund’s performance can be measured. It is a net return index which includes dividends after the deduction of withholding taxes. The index has been chosen as the fund’s benchmark as it best reflects the scope of the fund’s investment policy. The benchmark
is used solely to measure the fund’s performance and does not constrain the fund's portfolio construction.
The fund is actively managed. The investment manager has complete freedom in choosing which investments to buy, hold and sell in the fund. The fund’s holdings may deviate significantly from the benchmark’s constituents.
Fund performance prior to 26 October 2018 is that of the JPY Class A Accumulation of the M&G Japan Fund (a UK-authorised OEIC), which merged into this fund on 26 October 2018. Tax rates and charges may differ.
Benchmark is Gross Return prior to 26 October 2018 and Net Return after this date.
Source: Morningstar, Inc and M&G, as at 30 April 2025. Returns are calculated on a price to price basis with income reinvested. Benchmark returns stated in JPY terms.
Performance charts © 2025 Morningstar Inc., All Rights Reserved. The information contained within: (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.
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 Largest holdings (%) Largest overweights (%) Largest underweights (%)
Relative Relative Relative
Fund Index weight Fund Index weight Fund Index weight
Toyota 5.8 4.7 1.1 Orix Corporation 3.0 0.6 2.4 Sumitomo Mitsui Financial Group 0.0 2.3 -2.3
Mitsubishi UFJ 5.4 3.7 1.7 East Japan Railway Company 2.8 0.5 2.3 Tokio Marine 0.0 1.8 -1.8
Sony 4.4 4.2 0.2 Mitsui 3.6 1.3 2.3 Mitsubishi Corporation 0.0 1.7 -1.7
Mitsui 3.6 1.3 2.3 Nippon Telegraph and Telephone 3.0 0.8 2.2 Nintendo 0.8 2.4 -1.6
Hitachi 3.2 3.0 0.3 Corporation Itochu Corporation 0.0 1.6 -1.6
Seven & I Holdings 3.0 0.9 2.2 Seven & I Holdings 3.0 0.9 2.2 Kddi Corporation 0.0 1.4 -1.4
Nippon Telegraph and Telephone 3.0 0.8 2.2 Mitsubishi Estate 2.6 0.5 2.1 Shin-Etsu Chemical 0.0 1.4 -1.4
Corporation Toyota Industries Corporation 2.6 0.5 2.1 Takeda Pharmaceutical 0.0 1.3 -1.3
Orix Corporation 3.0 0.6 2.4 Mitsui Fudosan 2.7 0.7 2.0 Keyence 0.9 2.1 -1.2
East Japan Railway Company 2.8 0.5 2.3 NEC Corporation 2.6 0.8 1.8 Softbank 0.0 1.1 -1.1
Mitsui Fudosan 2.7 0.7 2.0 Mitsubishi UFJ 5.4 3.7 1.7

Industry breakdown (%) Country breakdown (%) Currency breakdown (%)

Relative Relative Relative
Fund Index weight Fund Index weight Fund Index weight
Industrials 25.7 23.3 2.5 Japan 94.5 100.0 -5.6 Japanese yen 96.0 100.0 -4.0
Consumer discretionary 17.4 18.5 -1.1 US 0.1 0.0 0.1 Euro 4.0 0.0 4.0
Financials 15.8 16.0 -0.2 Cash 5.5 0.0 5.5 US dollar 0.0 0.0 0.0
Information technology 12.0 13.0 -1.0 British pound 0.0 0.0 0.0
Breakdown in table is based on country of listing.
Health care 6.0 7.6 -1.6 Swiss franc 0.0 0.0 0.0
Communication services 5.9 8.2 -2.3
Currency exposures in the table above show positions after hedging to the fund’s base currency.
Real Estate 5.3 2.5 2.8
Consumer staples 4.0 5.5 -1.6
Materials 2.4 3.5 -1.1
Utilities 0.0 1.1 -1.1
Energy 0.0 0.8 -0.8
Cash 5.5 0.0 5.5

Capitalisation breakdown (%)

Relative
Fund Index weight
Mega cap (> $50bn) 38.1 46.4 -8.3
Large cap ($10 - $50bn) 39.3 45.1 -5.8
Mid cap ($2 - $10bn) 11.8 8.6 3.2
Small cap (< $2bn) 5.4 0.0 5.4
Cash 5.5 0.0 5.5
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 Fund codes and charges
Management Minimum Minimum
Share class Annual Management fees and other initial top up
Share class ISIN Bloomberg Currency launch date Charge costs Historic yield investment investment
JPY A Acc LU1797807986 MGJPJAA LX JPY 06/11/2018 1.50% 1.73% - JPY130,000 JPY10,000
JPY C Acc LU1797808018 MGJPJCA LX JPY 06/11/2018 0.75% 0.97% - JPY65,000,000 JPY6,500,000
JPY CI Acc LU1797808109 MGJPJCI LX JPY 28/05/2019 0.75% 0.93% - JPY65,000,000 JPY6,500,000
JPY CI Inc LU1991047561 MGJPCID LX JPY 28/05/2019 0.75% 0.93% 2.15% JPY65,000,000 JPY6,500,000
Management fees and other administrative or operating costs figures disclosed above include direct costs to the fund, such as the annual management charge (AMC), administration charge and custodian charge, as well as portfolio transaction costs. They are based on expenses for the period ending 31
March 2025. Any ongoing costs figure with* indicates an estimate. Not all costs are presented. The fund's annual report for each financial year will include details of the exact charges. Please note that not all of the share classes listed above might be available in your country.Please see the ‘Important
information’ at the end of this document, the fund`s Prospectus and the KID for more information on the risks associated with this fund and which share classes are available for which product and which investor type.
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 Approach to responsible investment ESG Standard Glossary
Yes No N/A Additional ESG specifications: In the context of M&G, these better manage risk and generate sustainable, long-term
are funds that are managed in accordance with specific ESG returns.
ESG integration ✔ criteria or, where relevant, with an explicit ESG objective. Exclusions: The exclusion or restriction of investments
Additional ESG specifications ✔ They will have a number of minimum exclusions in place. based on the sector in which they operate, the products or
Exclusions ✔ Engagement: Interaction with company management on services they provide or for other specific criteria, i.e. they
Cluster munitions & anti personnel landmines ✔ various financial and non-financial, including ESG, issues. are deemed to be in breach of the United Nations Global
Engagement allows investors to better understand how a Compact principles on human rights, labour the
Other exclusions or restrictions ✔
company is undertaking its operations and how it is environment and anti-corruption.
Voting ✔ interacting with its stakeholders, as well as advising on and Voting: As the partial owners of a company, shareholders
Engagement ✔ influencing company behaviour and disclosures where have the right to vote on resolutions put forward at a
Please see glossary for further explanation of these terms. appropriate. company’s annual general meeting. These resolutions
ESG integration: Describes the explicit and systematic include the re-election of directors, executive remuneration
SFDR Article Classification: Article 8 fund. The decision to invest in this fund should be based on all objectives and inclusion of Environmental, Social and Governance factors in and business strategy, among others, and may include
characteristics and not solely its non-financial objectives and characteristics. investment analysis and investment decisions. It underpins resolutions put forward by shareholders.
a responsible investment approach, and allows investors to

Climate metrics Explanation of our climate metrics

Weighted Average Carbon Coverage by The Weighted Average Carbon Intensity (WACI) is the metric used to report our funds’ carbon emissions. It is a
Intensity (tCO2e /US$m sales) portfolio weight (%) measure of how much CO2 is being emitted per US$ million of sales by each company that the fund invests in. This
can be used to determine the likely effect a company is having on the environment. It can also help to compare the
JPY A Accumulation 52.20 99.91% impact different companies have on the environment, and to compare companies against the broad market or the
Benchmark 63.08 100.00% financial benchmark for the fund. However, this metric does not take into account the difference in carbon
Source: We use a variety of data sources to gather and map the carbon emissions of our funds. This allows for data gaps characteristics among sectors.
from some data providers on some issuers. We currently use MSCI as our main third-party data provider for carbon The WACI metric is one of many greenhouse gas emissions data points, each offering a different aspect of analysis
intensity data as we consider its coverage to be the broadest of the current providers. on climate impact. M&G have selected this metric as it is applicable to multi-asset, equity and fixed income funds
and it is aligned to the recommendations from the Taskforce for Climate Related Financial Disclosures (TCFD). It has
also been chosen to align with M&G’s groupwide target of transparency when it comes to the disclosure of climate
emissions.
For the avoidance of doubt, this fund is not managed to a carbon emission objective and, the benchmark WACI
(should funds have a benchmark) has been included for information purposes only.
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 Fund description
The fund aims to provide combined income and capital growth that is higher than that of the Japanese stockmarket (as measured by the MSCI Japan Net Return Index) over any five-year period, while applying
environmental, social and governance (ESG) criteria. At least 80% of the fund is invested in the shares of companies domiciled, or conducting the major part of their economic activity, in Japan. The fund usually
holds shares in fewer than 50 companies. The investment manager’s focus is on stocks where it is believed that the share price is not fully valuing the company's sustainable earnings. The fund invests in
securities that meet the ESG criteria, applying an exclusionary approach and positive ESG tilt as described in the prospectus. The fund’s recommended holding period is five years.

Important information
On 26 October 2018, the non-sterling assets of the M&G Japan Fund, a UK-authorised OEIC, merged into the M&G (Lux) Japan Fund, a Luxembourg-authorised SICAV, which launched on 26 October 2018. The SICAV is run by the same fund manager,
applying the same investment strategy, as the UK-authorised OEIC.
Past performance of the fund and index includes recoverable withholding tax which may not be applicable to the SICAV.

The M&G (Lux) Japan Fund is a sub-fund of M&G (Lux) Investment Funds 1.
The Morningstar Overall Rating based on the fund’s JPY Class A shares. Copyright © 2025 Morningstar UK Limited. All Rights Reserved. Ratings should not be taken as recommendation.
For Investment Professionals, Institutional Investors, Accredited Investors and Professional Investors only. Not for onward distribution. No other persons should rely on any information contained within. In Hong Kong, this financial promotion is issued by
M&G Investments (Hong Kong) Limited. Office: Unit 1002, LHT Tower, 31 Queen’s Road Central, Hong Kong; in Singapore by M&G Investments (Singapore) Pte. Ltd. (Co. Reg. No. 201131425R), regulated by the Monetary Authority of Singapore; and in Taiwan
by M&G International Investments S.A. Registered Office: 16, boulevard Royal, L‑2449, Luxembourg.
For Hong Kong only: The contents of this document have not been reviewed by any regulatory authority in Hong Kong. You are advised to exercise caution in relation to the offer of any funds mentioned in it. If you are in any doubt about any of the contents of
this document, you should obtain independent professional advice. Shares, units or other interests in the funds mentioned in this document may only be offered or sold in Hong Kong to persons who are “professional investors” as defined in the Securities
and Futures Ordinance (“Ordinance”) and any rules made under the Ordinance – or in circumstances which are permitted under the Companies (Winding Up and Miscellaneous Provisions) Ordinance. In addition, distribution of this document in Hong Kong is
restricted. It may not be issued or possessed for the purposes of issue, whether in Hong Kong or elsewhere, and shares, units or other interests in the funds mentioned may not be disposed of to any person unless such person is a “professional investor” as
defined in the Ordinance and any rules made under the Ordinance or as otherwise may be permitted under Hong Kong law.
For Singapore only: For “accredited investors” and “institutional investors” as defined under the Securities and Futures Act (Cap. 289) of Singapore (“SFA”) only. This document forms part of, and should be read in conjunction with, the Information
Memorandum of the Fund and other communications permitted for offers made in reliance of prospectus exemptions under the SFA. All forms of investments carry risks. Such investments may not be suitable for everyone.
For Taiwan only: The financial product(s) offered herein has not been reviewed or approved by the competent authorities and is not subject to any filing or reporting requirement. The financial product(s) offered herein is only permitted to be recommended or
introduced to or purchased by customers of an offshore banking unit of a bank (“OBU”)/offshore securities unit of a securities firm (“OSU”) which customers reside outside the R.O.C. Customers of an OBU/OSU are not eligible to use the financial consumer
dispute resolution mechanism under the Financial Consumer Protection Law. This product(s) may be made available for purchase by Taiwan OBUs/OSUs acting on behalf of non-Taiwan customers of such units but may not otherwise be offered or sold in
Taiwan.
M&G Investments (Hong Kong) Limited, M&G International Investments S.A., M&G Investments (Singapore) Pte. Ltd and the funds referred to in this document may not be authorised, recognised or regulated by the local regulator in your jurisdiction. This
information is not an offer or solicitation of an offer for the purchase or sale of investment shares in one of the funds referred to herein.
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Glossary
This glossary provides an explanation of terms used in this factsheet. It may include terms that do not apply to this fund.

Accumulation shares: A type of share where distributions are automatically at the end of which the initial investment is repaid. an OEIC. Common in Luxembourg, Switzerland, Italy and France, and regulated by
reinvested and reflected in the value of the shares. Hard currency (bonds): Fixed income securities (bonds) denominated in a highly regulators in the European Union.
Asset allocation: Allocating a portfolio's assets according to risk tolerance and traded, relatively stable international currency, rather than in the bond issuer’s Swap: A swap is a derivative contract where two parties agree to exchange
investment goals. local currency. Bonds issued in a more stable hard currency, such as the US dollar, separate streams of cashflows. A common type of swap is an interest rate swap,
Asset-backed securities: Bonds (fixed income securities) backed by assets that can be more attractive to investors where there are concerns that the local where one party swaps cashflows based on variable interest rates for those based
produce cashflows, such as mortgage loans, credit card receivables and auto currency could lose value over time, eroding the value of bonds and their income. on a fixed interest rate, to hedge against interest rate risk.
loans. Hedging: A method of reducing unnecessary or unintended risk. UCITS: Stands for Undertakings for Collective Investments in Transferable
Benchmark (Constraint): The portfolio must replicate the securities contained in High yield bonds: Loans taken out in the form of fixed income securities issued by Securities. This is the European regulatory framework for an investment vehicle
the benchmark and their weights. The benchmark can be an index or a sector. companies with a low credit rating from a recognised credit rating agency. They that can be marketed across the European Union and is designed to enhance the
Depending on the fund’s mandate, the managers can replicate the positions are considered to be at higher risk of default than better-quality, higher-rated single market in financial assets while maintaining high levels of investor
directly or via derivatives, which are instruments whose value is derived from that fixed income securities, but they have the potential for higher rewards. Default protection.
of an underlying security or pool of securities. means that a bond issuer is unable to meet interest payments or repay the initial Underlying yield: The amount that is expected to be earned by the fund over the
Benchmark (Target): A benchmark, such as an index or sector, which the fund amount borrowed at the end of a security’s life. next 12 months expressed as a percentage of the share price as at a certain date.
managers aim to match or exceed. The managers have freedom in choosing the Historic yield: The historic yield reflects distributions declared over the past 12 It is based on the expected gross income from the current portfolio calculated in
securities and strategy by which they do so. months as a percentage of the share price as at the date shown. accordance with the fund’s accounting policies less all ongoing charges.
Benchmark: Measure, such as an index or sector, against which a portfolio’s Income shares: A type of share where distributions (also called dividends) are Unit trust: A type of managed fund whose value is directly linked to the value of
performance is judged. paid out as cash on the payment date. the fund's underlying investments and which is structured as a trust, rather than
Benchmark (Comparator): The fund managers choose the benchmark, which may Index-linked bonds: Fixed income securities where both the value of the loan and as a company.
be an index or a sector, as a comparator for the fund’s performance, but they do the interest payments are adjusted in line with inflation over the life of the United Nations Global Compact: A United Nations initiative to encourage
not have to replicate its composition. The benchmark is not used for any other security. Also referred to as inflation-linked bonds. businesses worldwide to adopt sustainable and socially responsible policies and
purpose, such as, for example, to serve as a reference when setting performance Investment association (IA): The UK trade body that represents fund managers. It to report on their implementation.
fees. works with investment managers, liaising with government on matters of taxation Valuation: The worth of an asset or company, based on the present value of the
Bond: A loan in the form of a security, usually issued by a government or company. and regulation, and also aims to help investors understand the industry and the cashflows it will generate.
It normally pays a fixed rate of interest (also known as a coupon) over a given time investment options available to them. Yield: This refers to either the interest received from a fixed income security or to
period, at the end of which the initial amount borrowed is repaid. Investment grade bonds: Fixed income securities issued by a government or the dividends received from a share. It is usually expressed as a percentage based
Cash equivalents: Deposits or investments with similar characteristics to cash. company with a medium or high credit rating from a recognised credit rating on the investment’s costs, its current market value or its face value. Dividends
Consumer prices index (CPI): An index used to measure inflation, or the rate at agency. They are considered to be at lower risk of default than those issued by represent a share in the profits of a company and are paid out to the company’s
which prices for a basket of goods and services bought by households change. issuers with lower credit ratings. Default means that a borrower is unable to meet shareholders at set times of the year.
The contents of the basket are meant to be representative of products and interest payments or repay the initial investment amount at the end of a security's
services consumers typically spend money on, and are updated regularly. life.
Convertible bonds: Fixed income securities (bonds) that can be exchanged for Leverage: When referring to a company, leverage is the level of a company’s debt
predetermined amounts of company shares at certain times during their life. in relation to its assets. A company with significantly more debt than capital is
Corporate bonds: Fixed income securities issued by a company. They are also considered to be leveraged. It can also refer to a fund that borrows money or uses
known as bonds and can offer higher interest payments than bonds issued by derivatives to magnify an investment position.
governments as they are often considered more risky. Also referred to by Local currency bonds: Bonds denominated in the currency of the issuer’s country,
investors as “credit.” rather than in a highly traded international ‘hard’ currency, such as the US dollar.
Coupon: The interest paid by the government or company that has raised a loan The value of local currency bonds tends to fluctuate more than that of bonds
by selling bonds. It is usually a fixed amount, calculated as a percentage of the issued in a hard currency, as these currencies tend to be less stable.
total loan and paid out at regular intervals. Long position (exposure): Holding a security in the expectation that its value will
Credit default swap (CDS): An insurance-like contract that allows an investor to rise.
transfer the default risk of a bond to another investor. The buyer of the CDS pays Maturity: The length of time until the initial amount invested in a fixed income
regular premiums to the seller, who has to reimburse the buyer in the event of the security is due to be repaid to the holder of the security.
underlying bond defaulting. A CDS is a type of derivative – a financial instrument Modified duration: A measure of the sensitivity of a bond, or bond fund, to
whose value and price is dependent on the underlying asset. changes in interest rates, expressed in years. The longer a bond or bond fund’s
Credit rating agency: A company that analyses the financial strength of issuers of duration, the more sensitive it is to interest rate movements.
fixed income securities (bonds) and attaches a rating to their debt. Examples Near cash: Deposits or investments with similar characteristics to cash.
include Standard & Poor’s, Moody's and Fitch. Net asset value (NAV): The current value of the fund’s assets minus its liabilities.
Derivatives: Financial instruments whose value and price depend on one or more Ongoing charge figure: The ongoing charge figure represents the operating costs
underlying assets. Derivatives can be used to gain exposure to, or to help protect investors can reasonably expect to pay under normal circumstances.
against, expected changes in the value of the underlying investments. Derivatives Open-ended investment company (OEIC): A type of managed fund whose value is
may be traded on a regulated exchange or directly between two parties (over the directly linked to the value of the fund’s underlying investments. The fund creates
counter). or cancels shares depending on whether investors want to redeem or purchase
Distribution yield: The amount that is expected to be distributed by the fund over them.
the next 12 months expressed as a percentage of the share price as at a certain Options: Financial contracts that offer the right, but not the obligation, to buy or
date. It is based on the expected gross income from the current portfolio sell an asset at a given price on or before a given date in the future.
calculated in accordance with the fund’s distribution polices less the ongoing Payment date: The date on which distributions will be paid by the fund to
charges where they are deducted from income. investors, usually the last business day of the month.
Dividend yield: Annual income distributed by a company as a percentage of its Physical assets: An item of value that has tangible existence; for example cash,
share price as at a certain date. equipment, inventory or real estate. Physical assets can also refer to securities,
Duration: A measure of the sensitivity of a fixed income security (bond) or bond such as company shares or fixed income securities.
fund to changes in interest rates. The longer a bond or bond fund’s duration, the Property expense ratio: Property expenses are the operating expenses that relate
more sensitive it is to interest rate movements. to the management of the property assets in the portfolio. These include:
Emerging economy or market: Country in the process of catching up with insurance and rates, rent review and lease renewal costs and maintenance and
developed economies, with rapid growth and increasing industrialisation. repairs, but not improvements. They depend on the level of activity taking place
Investments in emerging markets are generally considered to be riskier than those within the fund. The Property Expense Ratio is the ratio of property expenses to
in developed markets. the fund’s net asset value.
Equities: Shares of ownership in a company. They offer investors participation in Retail prices index (RPI): A UK inflation index that measures the rate of change of
the company’s potential profits, but also the risk of losing all their investment if the prices for a basket of goods and services in the UK, including mortgage payments
company goes bankrupt. and council tax.
Ex-dividend, ex-distribution or xd date: The date on which declared distributions Share class hedging: Activities undertaken in respect of hedged shares to
officially belong to underlying investors. On the XD date, the stock’s price usually mitigate the impact on performance of exchange rate movements between the
falls by the amount of the dividend, reflecting the payout. fund’s currency exposure and the investor’s chosen currency.
Exposure: The proportion of a fund invested in a particular share/fixed income Share class: Type of fund shares held by investors in a fund (share classes differ
security/index, sector/region, usually expressed as a percentage of the overall by levels of charge and/or by other features such as hedging against currency
fund. risk). Each M&G fund has different share classes, such as A, R and I. Each has a
Fixed income security: A loan in the form of a security, usually issued by a different level of charges and minimum investment. Details on charges and
government or company, which normally pays a fixed rate of interest over a given minimum investments can be found in the fund's Prospectus.
time period, at the end of which the initial amount borrowed is repaid. Also Share: An ownership stake in a company, usually in the form of a security. Also
referred to as a bond. called equity. Shares offer investors participation in the company’s potential
Floating rate notes (FRNs): Securities whose interest (income) payments are profits, but also the risk of losing all their investment if the company goes
periodically adjusted depending on the change in a reference interest rate. bankrupt.
Gilts: Fixed income securities issued by the UK government. They are called gilts Short position (exposure): A way for an investor to express their view that the
because they used to be issued on gilt-edged paper. market might fall in value.
Government bonds: Loans issued in the form of fixed income securities by SICAV: In French, it stands for société d'investissement à capital variable. It is the
governments. They normally pay a fixed rate of interest over a given time period, western European version of an open-ended collective investment fund, much like
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