M&G Investments today announces the launch of the M&G European ex-UK Fund (the Fund),to provide access to Europe’s diverse equity markets. The launch comes at a potentially pivotal moment in allocation cycles as global investors reassess biases towards the US and seek to diversify investment strategies.
Launched in response to client demand, M&G has a 20-year track record of managing this strategy on behalf of M&G’s £128 billion With Profits Fund¹ which includes its PruFund range – and is making it available to external investors in the UK for the first time. The Fund will be managed by Richard Halle, a highly experienced investor in disciplined value strategies, whose team manages more than £5.5 billion in European equities. He will be supported by deputy fund managers, Daniel White and Shane Kelly alongside M&G’s wider global equity team.
Replicating an investment approach with a strong track-record, the M&G European ex-UK Fund is an actively managed value strategy that invests in inexpensive, out of favour European companies with share prices that don’t reflect their true value. Stocks are selected on the basis of their individual merits, through a combination of value-focused screening and qualitative assessment to maintain a focus on value without sacrificing the strength of the companies in the portfolio.
Richard Halle, manager of the M&G European ex-UK Fund, says: “European equities are currently trading at a significant discount to their US counterparts in almost every sector, which is very encouraging for investors. In a global market dominated by expensive US growth stocks, we are actively identifying compelling opportunities in underappreciated European businesses with good potential. As investor interest refocuses on fundamentals and structural reforms creating a more supportive environment for value investing, now is a very exciting time for investing in Europe.”
Building on the launches of the M&G China and M&G India Funds, M&G continues to aim to make its investment capabilities more widely available to external investors.
Alex Matcham, Head of UK Wholesale Sales at M&G Investments, adds: “In April, more than half of the top 30 funds favoured by UK investors were active strategies³. This highlights the momentum that active fund management is creating amidst increasing market volatility, reaffirming the value and strategic insights that it can offer during uncertain market conditions.
“The launch is testament to the team’s strong track record and the potential for growth and diversification. Under the stewardship of a highly skilled and experienced fund manager, backed by deep research expertise and M&G’s global equity team, we are launching another tried and tested strategy to market and empowering investors to capture enduring value in Europe’s dynamic equity landscape.”
Available in a daily dealing OEIC structure, the M&G European ex-UK Fund aims to provide investors with capital growth and income higher than the FTSE World Europe ex UK Index over a five-year period.
