Targeting income and capital growth

Targeting income and capital growth

Everyone needs income….

Across the developed world, the need for income has been growing dramatically, but meeting this demand is becoming increasingly challenging. People are living longer and therefore are likely needing to fund a longer time period without a regular salary. Rising inflation is another factor to consider - even before retirement, people will have other uses for their savings, such as holidays, children’s education or a deposit for a home.

…though good returns are not easy to find.

In recent years, traditional retirement income sources such as bank deposits, mainstream government bonds and annuities have been offering income seekers considerably less than they used to.

Increasingly poor returns on traditional sources of retirement income

Past performance is not a guide to future 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.

A multi-asset approach

One possible answer to this conundrum is the potential generation of regular income, combined with capital growth, from a multi-asset investment approach. The ability to invest across a variety of assets, geographies and sectors gives the flexibility to benefit from opportunities wherever they may arise.

Income as an outcome - M&G Episode Income Fund

The fund is designed to generate income and capital growth over the medium term by the application of a global multi-asset approach involving dynamic and diversified investment across and within asset classes. Please note that there is no guarantee the fund will achieve its objective.

The fund allows for the extensive use of derivatives.

The value of investments and the income from them will rise and fall. This will cause the fund price, as well as any income paid by the fund, to fall as well as rise. 

Past performance is not a guide to future performance. 

The Fund's 'Episode' philosophy

Fund Manager Steven Andrew seeks to invest in different types of assets, including equities and bonds issued by governments and companies from anywhere in the world. The ability to invest across a variety of assets, geographies and sectors gives flexibility to potentially benefit from opportunities wherever they may arise.
In Steven’s view, asset allocation is the main driver of returns over time. Steven believes that financial markets often move irrationally because investors allow their emotions to affect their decision-making. Using a robust valuation framework, he assesses the economic environment, seeking to identify occasions – ‘episodes’ - where investor behaviour has moved asset prices away from what he would consider their long term fair value, or ‘neutrality’. He seeks to take advantage of emotionally driven misalignments by positioning the portfolio to benefit from prices gravitating back towards neutrality.

Access in-depth information on M&G Episode Income Fund, daily prices and fund manager views at

Talking Factsheet – M&G Episode Income Fund

Issued by M&G Securities Limited

For financial advisers only. Not for onward distribution. No other persons should rely on any information contained within. This financial promotion is issued by M&G Securities Limited which is authorised and regulated by the Financial Conduct Authority in the UK and provides ISAs and other investment products. The company’s registered office is Laurence Pountney Hill, London EC4R 0HH. Registered in England No. 90776.