M&G (Lux) Investment Funds 1 Interim Report and Unaudited Financial
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M&G (Lux) Investment Funds 1 Interim Report and unaudited Financial Statements for the six months ended 30 September 2020 M&G (Lux) Investment Funds 1 is a Société d’investissement à capital variable (SICAV) under Luxembourg Law R.C.S Luxembourg: B210.615 Contents M&G (Lux) Investment Funds 1 Management and administration Page 1 Directors' Report Page 6 Market review Page 9 Investment objective and policy, Portfolio statement and Financial highlights for: M&G (Lux) Absolute Return Bond Fund Page 10 M&G (Lux) Asian Fund Page 19 M&G (Lux) Conservative Allocation Fund Page 24 M&G (Lux) Dynamic Allocation Fund Page 34 M&G (Lux) Emerging Markets Bond Fund Page 47 M&G (Lux) Emerging Markets Corporate ESG Bond Fund Page 57 M&G (Lux) Emerging Markets Hard Currency Bond Fund Page 63 M&G (Lux) Emerging Markets Income Opportunities Fund Page 72 M&G (Lux) Episode Macro Fund Page 79 M&G (Lux) Euro Corporate Bond Fund Page 85 M&G (Lux) European Inflation Linked Corporate Bond Fund Page 94 M&G (Lux) European Strategic Value Fund Page 101 M&G (Lux) Floating Rate High Yield Solution Page 107 M&G (Lux) Global Convertibles Fund Page 112 M&G (Lux) Global Corporate Bond Fund Page 119 M&G (Lux) Global Dividend Fund Page 126 M&G (Lux) Global Emerging Markets Fund Page 131 M&G (Lux) Global Enhanced Equity Premia Fund Page 136 M&G (Lux) Global Floating Rate High Yield Fund Page 142 M&G (Lux) Global High Yield Bond Fund Page 150 M&G (Lux) Global High Yield ESG Bond Fund Page 159 M&G (Lux) Global Listed Infrastructure Fund Page 166 M&G (Lux) Global Macro Bond Fund Page 171 M&G (Lux) Global Maxima Fund Page 180 M&G (Lux) Global Select Fund Page 185 M&G (Lux) Global Strategic Value Fund Page 190 M&G (Lux) Global Target Return Fund Page 195 M&G (Lux) Global Themes Fund Page 202 M&G (Lux) Income Allocation Fund Page 207 Contents M&G (Lux) Japan Fund Page 217 M&G (Lux) Japan Smaller Companies Fund Page 222 M&G (Lux) Multi Asset 2023 Fund Page 227 M&G (Lux) North American Dividend Fund Page 231 M&G (Lux) North American Value Fund Page 236 M&G (Lux) Optimal Income Fund Page 242 M&G (Lux) Pan European Select Fund Page 259 M&G (Lux) Positive Impact Fund Page 264 M&G (Lux) Short Dated Corporate Bond Fund Page 270 M&G (Lux) Sustainable Allocation Fund Page 276 Financial statements and notes for M&G (Lux) Investment Funds 1 Page 283 Financial statements Page 283 Notes to the financial statements Page 322 Other regulatory disclosures Page 345 Glossary Page 346 1 INTERIM REPORT AND UNAUDITED FINANCIAL STATEMENTS • SEPTEMBER 2020 M&G (Lux) Investment Funds 1 Management and administration The Board of Directors of M&G (Lux) Investment Funds 1 (the Board of Directors of M&G (Lux) Investment Funds 1 (the ‘Board’ or its 'Directors') presents its Interim Report and ‘Board’) unaudited Financial Statements for the six months ended P R Jelfs, L J Mumford, S van Dootingh*, Y Wagner* 30 September 2020. * Independent Directors Please note that we have included an explanation of key investment terminology in the ‘Glossary’ (at the back of this Sub-funds, sub-fund managers and launch report). dates Company information At the financial period end 30 September 2020, the following funds are available for investment. Please note the sub-fund M&G (Lux) Investment Funds 1 (the ‘Company’) is an managersareemployedbyM&GFALimited. Open-Ended Investment Company incorporated under the laws of Luxembourg as a Société d’investissement à capital variable M&G (Lux) Absolute Return Bond Fund (SICAV) in accordance with the provision of part 1 of the UCI Launched: 21 December 2016 Law of 17 December 2010, as amended. Co-sub-fund managers: Jim Leaviss and Wolfgang Bauer The Company is authorised and regulated by the Commission de M&G (Lux) Asian Fund Surveillance du Secteur Financier ('CSSF') under the laws of the Launched: 26 October 2018 Grand-Duchy of Luxembourg. The Company was incorporated Sub-fund manager: David Perrett on 29 November 2016 and is a UCITS (Undertaking for M&G (Lux) Conservative Allocation Fund Collective Investment in Transferable Securities) scheme under Launched: 16 January 2018 part 1 of the law dated 17 December 2010 on undertakings for Co-sub-fund managers: Steven Andrew and Craig Moran Collective Investment, as amended. The Company is an umbrella fund designed to offer investors At the start of the review period Juan Nevado was the co-sub-fund manager. access to a variety of investment strategies through a range of He was replaced on 15 July 2020 by Steven Andrew. separate funds. Each sub-fund, hereinafter referred to as ‘funds’ M&G (Lux) Dynamic Allocation Fund in the rest of this report, represents a separate portfolio of Launched: 16 January 2018 assets. Co-sub-fund managers: Juan Nevado and Craig Moran The Company’s principal activity is to carry on business as a M&G (Lux) Emerging Markets Bond Fund SICAV. The Company is structured as an umbrella fund, and Launched: 17 September 2018 different sub-funds may be established by the Board from time Sub-fund manager: Claudia Calich to time with the approval of the CSSF. Under Luxembourg law, the Company is itself a legal entity, and M&G (Lux) Emerging Markets Corporate ESG Bond Fund the assets and liabilities of each sub-fund are segregated from Launched: 25 July 2019 one another and invested in accordance with the investment Sub-fund manager: Charles de Quinsonas objectives and investment policies applicable to each sub-fund. M&G (Lux) Emerging Markets Hard Currency Bond Fund Shareholders are not liable for the debts of the respective fund. Launched: 22 May 2017 A Shareholder is not liable to make any further payment to the Sub-fund manager: Claudia Calich respective sub-fund after payment has been made in full for the M&G (Lux) Emerging Markets Income Opportunities purchase of shares. Fund Each sub-fund may offer more than one class of shares. Each Launched: 22 May 2017 share class may have different features with respect to its criteria Co-sub-fund managers: Michael Bourke and Charles de for subscription (including eligibility requirements), redemption, Quinsonas minimum holding, fee structure, currency, hedging policy and distribution policy (further information on share classes is fully M&G (Lux) Episode Macro Fund described in the Company’s Prospectus). Launched: 26 October 2018 Co-sub-fund managers: David Fishwick and Eric Lonergan M&G (Lux) Euro Corporate Bond Fund Launched: 9 November 2018 Sub-fund manager: Stefan Isaacs INTERIM REPORT AND UNAUDITED FINANCIAL STATEMENTS • SEPTEMBER 2020 2 M&G (Lux) Investment Funds 1 Management and administration Sub-funds, sub-fund managers and launch M&G (Lux) Global Maxima Fund dates (continued) Launched: 11 December 2019 Co-sub-fund managers: Marc Beckenstrater and Gautam M&G (Lux) European Inflation Linked Corporate Bond Samarth Fund On 30 June 2020 Gautam Samarth was appointed co-sub-fund manager. Launched: 16 March 2018 Sub-fund manager: Wolfgang Bauer M&G (Lux) Global Select Fund Launched: 9 November 2018 M&G (Lux) European Strategic Value Fund Sub-fund manager: John William Olsen Launched: 18 September 2018 Sub-fund manager: Richard Halle M&G (Lux) Global Strategic Value Fund Launched: 18 July 2018 M&G (Lux) Floating Rate High Yield Solution Co-sub-fund managers: Richard Halle, Daniel White and Launched: 24 August 2017 Shane Kelly Co-sub-fund managers: Stefan Isaacs and James Tomlins M&G (Lux) Global Target Return Fund M&G (Lux) Global Convertibles Fund Launched: 21 December 2016 Launched: 9 November 2018 Sub-fund manager: Tristan Hanson Sub-fund manager: Léonard Vinville M&G (Lux) Global Themes Fund M&G (Lux) Global Corporate Bond Fund Launched: 19 March 2019 Launched: 7 December 2018 Sub-fund manager: Alex Araujo Sub-fund manager: Ben Lord M&G (Lux) Income Allocation Fund M&G (Lux) Global Dividend Fund Launched: 16 January 2018 Launched: 18 September 2018 Sub-fund manager: Steven Andrew Sub-fund manager: Stuart Rhodes M&G (Lux) Japan Fund M&G (Lux) Global Emerging Markets Fund Launched: 26 October 2018 Launched: 26 October 2018 Sub-fund manager: Carl Vine Sub-fund manager: Michael Bourke M&G (Lux) Japan Smaller Companies Fund M&G (Lux) Global Enhanced Equity Premia Fund Launched: 26 October 2018 Launched: 10 December 2019 Sub-fund manager: Carl Vine Co-sub-fund managers: Gautam Samarth and Marc Beckenstrater M&G (Lux) Multi Asset 2023 Fund Launched: 14 December 2017 On 30 June 2020 Marc Beckenstrater was appointed co-sub-fund manager. Sub-fund manager: Craig Moran M&G (Lux) Global Floating Rate High Yield Fund M&G (Lux) North American Dividend Fund Launched: 13 September 2018 Launched: 9 November 2018 Sub-fund manager: James Tomlins Sub-fund manager: John Weavers M&G (Lux) Global High Yield Bond Fund M&G (Lux) North American Value Fund Launched: 9 November 2018 Launched: 9 November 2018 Co-sub-fund managers: Stefan Isaacs and James Tomlins Sub-fund manager: Daniel White M&G (Lux) Global High Yield ESG Bond Fund M&G (Lux) Optimal Income Fund Launched: 5 October 2017 Launched: 5 September 2018 Co-sub-fund managers: James Tomlins and Stefan Isaacs Sub-fund manager: Richard Woolnough M&G (Lux) Global Listed Infrastructure Fund M&G (Lux) Pan European Select Fund Launched: 5 October 2017 Launched: 9 November 2018 Sub-fund manager: Alex Araujo Sub-fund manager: John William Olsen M&G (Lux) Global Macro Bond Fund M&G (Lux) Positive Impact Fund Launched: 26 October 2018 Launched: 29 November 2018 Sub-fund manager: Jim Leaviss Sub-fund manager: John William Olsen 3 INTERIM REPORT AND UNAUDITED FINANCIAL STATEMENTS • SEPTEMBER 2020 M&G (Lux) Investment Funds 1 Management and administration Sub-funds, sub-fund managers and launch The Management Company in conjunction with the Board of Directors has appointed State Street Bank International GmbH, Luxembourg Branch as dates (continued) administrator of the Company.