Clarification of investment objective - M&G Recovery fund

What are the changes?

The changes to the investment objective and policy of the fund are intended to clarify what the fund sets out to do and to make it easier for investors to determine whether the fund has achieved this. M&G has confirmed that there will be no change to the way the fund is managed, nor to the types of investments the fund is allowed to hold. 

The fund investment objective and policy will be split into a separate investment objective and investment policy.

Current wording

Investment objective and policy 

The Fund predominantly invests in a diversified range of securities issued by 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.

Wording with effect from 1 March 2019

Investment objective 

The Fund aims to provide a higher total return (the combination of capital growth and income), net of the Ongoing Charge Figure, than that of the FTSE All-Share Index over any five-year period. 

Investment policy 

At least 80% of the Fund is invested directly in equity securities and equity-related securities of companies across any sectors and market capitalisations that are incorporated, domiciled, listed or do most of their business in the United Kingdom. 

The Fund may also invest in other transferable securities directly and via collective investment schemes (including funds managed by M&G). 

The Fund may also hold cash for liquidity purposes. 

Derivatives may be used for efficient portfolio management and hedging. 

Investment approach 

In addition to the changes above, the fund's Prospectus will be updated to include details of the fund's investment approach, providing further information on the way the fund is managed. The M&G notification opposite provides details. 

Please note that the M&G notification, a copy of which is provided opposite, details changes to the investment objectives and policies of various other M&G funds that are available via our open architecture products. 

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