The information in this site is intended for investment professionals only.

The information contained in these pages must not be used or relied upon by private investors.

We recommend that you read our 'Terms & Conditions' before browsing the site.

Please select the option on the right to confirm that you are an investment professional and wish to continue.

Audience

Educational materials

Share class hedging

At M&G we offer currency-hedged share classes on many of our retail funds. The aim of the hedged classes is to mitigate the impact on performance of exchange rate movements between the fund’s currency exposure and the investor’s chosen currency. For example, a euro-based investor in a sterling bond fund may wish to capture just the return from sterling bonds. A euro-denominated share class would deliver this return, but with the additional impact of movements between sterling and the euro. A euro-hedged share class, however, would seek to mitigate this additional impact, leaving the investor with just the desired exposure to the performance of sterling bonds.

Read more

Key risk measures - Glossary of terms

The M&G Portfolio Construction & Risk (PCR) team uses a variety of risk systems and techniques to analyse risk exposures and sources of performance of the M&G equity funds. This enables the team to capture intended investment risks and, more importantly, the unintended risks that can arise from a bottom-up, stockpicking investment approach based on company fundamentals. We list below definitions of the key risk measures from each system used by the team in order to assist in the interpretation of their analyses.

Read more

Overview of equity risk management

At M&G, we believe that in order to achieve good investment performance, it is important that fund managers are given the freedom to take risks. This is provided that those risks are consistent with the fund’s mandate, and that they are well understood by both the fund manager and senior management.

Investment risk is concerned with the generation and assessment of portfolio returns, as opposed to other forms of risk management undertaken at M&G, including regulatory, operational and counterparty risk. We do not employ any formal risk control parameters (such as tracking error limits) in the management of our portfolios, other than those required by the regulators and the mandates of the funds themselves.

Read more

Need further information?

Cyveillance Protected

For Investment Professionals only. Not for onward distribution to any other type of client. No other persons should rely on the information contained on this website. Content should therefore be shared responsibly with other investment professionals. The value of investments will fluctuate, which will cause fund prices to fall as well as rise and investors may not get back the original amount invested.