M&G Investment Funds
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M&G Investment Funds (1) Annual Long Report and audited Financial Statements for the year ended 31 August 2020 Contents M&G Investment Funds (1) Authorised Corporate Director’s Report Page 1 Directors’ statement Page 4 Depositary’s Responsibilities and Report Page 5 Independent Auditor’s Report Page 6 Financial statements and notes Page 8 Authorised Corporate Director’s Reports, including the financial highlights and financial statements and notes for: M&G Asian Fund Page 12 M&G European Index Tracker Fund Page 30 M&G European Select Fund Page 52 M&G Global Select Fund Page 71 M&G Global Themes Fund Page 88 M&G Japan Fund Page 108 M&G Japan Smaller Companies Fund Page 127 M&G North American Dividend Fund Page 146 M&G North American Value Fund Page 166 M&G Pan European Select Fund Page 183 M&G Pan European Select Smaller Companies Fund Page 200 Other regulatory disclosures Page 220 Glossary Page 221 ANNUAL LONG REPORT AND AUDITED FINANCIAL STATEMENTS • AUGUST 2020 1 M&G Investment Funds (1) Authorised Corporate Director’s Report The Authorised Corporate Director (ACD) of M&G Investment M&G Global Select Fund Funds (1) presents its Annual Long Report and audited Financial John William Olsen Statements for the year ended 31 August 2020. M&G Global Themes Fund The audited financial statements of M&G Investment Funds Alex Araujo (1) and the investment report and audited financial statements M&G Japan Fund and notes of each sub-fund are presented in their individual Carl Vine sections of this report as set out in the contents page. At the start of the review period Johan du Preez was the fund manager. Please note that we have included an explanation of key M&G Japan Smaller Companies Fund investment terminology in the ‘Glossary’ (at the back of this Carl Vine report). At the start of the review period Johan du Preez was the fund manager. M&G North American Dividend Fund Company information John Weavers M&G Investment Funds (1) is an umbrella Open-Ended M&G North American Value Fund Investment Company (OEIC) and contains 11 sub-funds, Daniel White hereinafter referred to as ‘funds’ in the rest of this report. Each M&G Pan European Select Fund fund is a UCITS (Undertakings for Collective Investment in John William Olsen Transferable Securities) scheme as defined in the Collective M&G Pan European Select Smaller Companies Fund Investment Schemes sourcebook, as issued (and amended) by Michael Oliveros the Financial Conduct Authority (FCA). This OEIC is an Investment Company with Variable Capital (ICVC) incorporated under the ACD Open-Ended Investment Companies Regulations 2001. It is M&G Securities Limited, authorised and regulated by the FCA under the Financial Services 10 Fenchurch Avenue, London EC3M 5AG, UK and Markets Act 2000. Telephone: 0800 390 390 (UK only) The Company was authorised on 6 June 2001 and was launched (Authorised and regulated by the Financial Conduct Authority. on 1 November 2001, following the conversion of a series of M&G Securities Limited is a member of the Investment authorised unit trusts. Association and of The Investing and Saving Alliance (formerly The Company’s principal activity is to carry on business as an Tax Incentivised Savings Association)) OEIC. The Company is structured as an umbrella company, and Directors of the ACD different funds may be established by the ACD from time to time with the agreement of the Depositary and approval from the FCA. C Dobson (non executive director), N M Donnelly*, S A Fitzgerald, The funds are operated separately and the assets of each fund P R Jelfs, M McGrade (non executive director), L J Mumford are managed in accordance with the investment objective and * Resigned 30 June 2020. policy applicable to that fund. Investment manager As at 31 August 2020, none of the funds held shares of the other M&G Investment Management Limited, funds within this OEIC. 10 Fenchurch Avenue, London EC3M 5AG, UK A shareholder is not liable for the debts of the Company and will Telephone: +44 (0)20 7626 4588 never be liable to make any further payment to the Company (Authorised and regulated by the Financial Conduct Authority) after paying the purchase price of the shares. Registrar Fund managers SS&C Financial Services Europe Ltd*, The following fund managers are employed by M&G FA Limited SS&C House, St. Nicholas Lane, Basildon, Essex SS15 5FS, UK which is an associate of M&G Securities Limited. (Authorised and regulated by the Financial Conduct Authority) M&G Asian Fund * DST Financial Services Europe Ltd changed its name to SS&C Financial Services David Perrett Europe Ltd on 31 March 2020. At the start of the review period Alastair Bruce was the fund manager. Depositary M&G European Index Tracker Fund NatWest Trustee & Depositary Services Limited, Drummond Nigel Booth House, 1 Redheughs Avenue, Edinburgh EH12 9RH, UK M&G European Select Fund (Authorised and regulated by the Financial Conduct Authority) Richard Halle 2 ANNUAL LONG REPORT AND AUDITED FINANCIAL STATEMENTS • AUGUST 2020 M&G Investment Funds (1) Authorised Corporate Director’s Report Independent auditor Investor information Ernst & Young LLP The Prospectus, Instrument of Incorporation, Key Investor Atria One,144 Morrison Street, Edinburgh EH3 8EX, UK Information Documents, Costs and charges illustration, the latest Annual or Interim Investment Report and Financial Statements as Annual value assessment well as a list of purchases and sales are available free of charge on request from the following addresses. The Instrument of An annual assessment report is available which shows the value Incorporation can also be inspected at our offices or at the office provided to investors in each of M&G’s UK-based funds. The of the Depositary. assessment report evaluates whether M&G’s charges are justified in the context of the overall service delivered to its investors. The Customer services and administration for UK clients: report can be found at www.mandg.co.uk/valueassessment. M&G Securities Limited, PO Box 9039, Chelmsford CM99 2XG, UK Important information Please remember to quote your name and M&G client reference On 29 November 2019, the investment objective, policy and and sign any written communication to M&G. Failure to provide approach were changed for the M&G Global Select Fund, M&G this will affect your ability to transact with us. North American Dividend Fund and M&G Pan European Select Telephone: 0800 390 390 (UK only) Fund. For security purposes and to improve the quality of our service, we On 6 December 2019, M&G North American Dividend Fund may record and monitor telephone calls. You will require your launched Sterling Class ‘I-H’ (Income) and (Accumulation) shares, M&G client reference. Failure to provide this will affect your ability and Sterling Class ‘PP-H’ (Income) and (Accumulation) shares. to transact with us. On 6 December 2019, M&G European Index Tracker Fund Customer services and administration for non-UK clients: launched Sterling Class ‘I’ (Accumulation) shares. M&G Securities Limited, The World Health Organisation declared the COVID-19 outbreak c/o RBC I&TS, 14, Porte de France, L-4360 Esch-sur-Alzette, a pandemic on 11 March 2020. Grand Duchy of Luxembourg Global financial markets have been reacting to the outbreak. All Please remember to quote your name and M&G client reference markets have incurred increased volatility and uncertainty since and sign any written communication to M&G. Failure to provide the onset of the pandemic. this will affect your ability to transact with us. The ACD has also noted the operational risks that are posed to the Telephone: +352 2605 9944 Company and its service providers due to global and local Email: [email protected] movement restrictions that have been enacted by various For security purposes and to improve the quality of our service, we governments. may record and monitor telephone calls. You will require your The COVID-19 pandemic is an unprecedented event and the M&G client reference. Failure to provide this will affect your ability eventual impact on the global economy and markets will largely to transact with us. depend on the scale and duration of the outbreak. The ACD will continue to monitor this situation. Austrian paying and information agent: Société Générale, Vienna Branch, Prinz Eugen-Strasse 8-10/5/Top 11, 1040 Wien, Austria Belgian financial agent: ABN AMRO Bank N.V., Belgium branch Roderveldlaan 5 bus 4, 2600 Berchem Belgium Danish representative agent: Nordea Bank Danmark A/S, Client Relations DK, Investor Services & Solutions, Postbox 850, Reg.no.6428. HH. 6.1., 0900 København C, Denmark French centralising agent: RBC Investor Services, Bank France S.A., 105 rue Réaumur, 75002 Paris, France ANNUAL LONG REPORT AND AUDITED FINANCIAL STATEMENTS • AUGUST 2020 3 M&G Investment Funds (1) Authorised Corporate Director’s Report German information agent: M&G International Investments Limited, mainBuilding, Taunusanlage 19, 60325 Frankfurt am Main, Germany Irish facilities agent: Société Générale S.A., Dublin Branch, 3rd Floor IFSC House – The IFSC, Dublin 1, Ireland Italian paying agents: Allfunds Bank, S.A., Via Santa Margherita 7, 20121 Milano, Italy Banca Monte dei Paschi di Siena S.p.A., Piazza Salimbeni 3, 53100 Siena, Italy Banca Sella Holding S.p.A., Piazza Gaudenzio Sella 1, 13900 Biella, Italy CACEIS Bank Luxembourg, Milan Branch, Piazza Cavour 2, 20121 Milano, Italy RBC Investor Services Bank S.A., Milan Branch Via Vittor Pisani 26, 20124 Milano, Italy State Street Bank S.p.A., Via Ferrante Aporti 10, 20125 Milano, Italy Société Générale Securities Services S.A., Via Benigno Crespi 19A - MAC 2, 20159 Milano, Italy Luxembourg paying and information agent: Société Générale Luxembourg, Centre operationnel, 28-32, place de la Gare, 1616 Luxembourg, Grand Duchy of Luxembourg Portuguese distributor: Best - Banco Electrónico de Serviço Total, S.A., Praça Marquês de Pombal, no.