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.
Investment policy and strategy
Core investment: At least 80% of the fund is invested directly in the shares of companies, across any sector and of any size, that are based, or do most of their business, in Europe (excluding the UK). The fund is concentrated and usually holds shares in fewer than 50 companies.
Other investments: The fund may invest in other funds (including funds managed by M&G) and cash or assets that can be turned into cash quickly.
Derivatives: The fund may use derivatives to reduce the risks and costs of managing the fund.
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.
Benchmark: FTSE World Europe ex UK Index
The benchmark is a target which the fund seeks to outperform. 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 fund 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.
For unhedged and hedged share classes, the benchmark is shown in the share class currency.
Risks associated with the fund
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 invested.
The fund holds a small number of investments, and therefore a fall in the value of a single investment may have a greater impact than if it held a larger number of investments.
The fund can be exposed to different currencies. Movements in currency exchange rates may adversely affect the value of your investment.
In exceptional circumstances where assets cannot be fairly valued, or have to be sold at a large discount to raise cash, we may temporarily suspend the fund in the best interest of all investors.
The fund could lose money if a counterparty with which it does business becomes unwilling or unable to repay money owed to the fund.
Further details of the risks that apply to the fund can be found in the fund's Prospectus.
The fund invests mainly in company shares and is therefore likely to experience larger price fluctuations than funds that invest in bonds and/or cash.