The fund aims to track the FTSE World Europe ex UK Index*.
Investment policy and strategy
Core investment: The fund holds the shares of all the largest companies in the index as well as the shares of a selection of the remaining smaller companies to ensure that the index is replicated as closely as possible.
Other investments: Generally, less than 5% is held as cash or assets that can be turned into cash quickly.
Use of derivatives: The fund is typically directly invested in company shares but may make limited use of derivatives to reduce risk and costs.
Strategy in brief: The fund is designed to track the performance of the FTSE World Europe ex UK Index, which represents a broad spread of European company shares. It typically has around 375 holdings, including all of the shares of the largest 100 companies in the index, as well as the shares in a selection of the remaining smaller companies to ensure that the index is replicated as closely as possible.
* FTSE® International. FTSE is a joint trademark of the London Stock Exchange Limited and the Financial Times Limited and is used by FTSE International Limited under licence. The FTSE World Europe ex UK Index is calculated by FTSE International Limited. FTSE International Limited does not sponsor, endorse or promote these products. All copyright in the index values and constituent lists rests with FTSE International Limited. M&G Securities Limited has obtained full licence from FTSE International Limited to use such copyright in the creation of this product.
Derivatives: Financial contracts whose value is derived from other assets.
Risks associated with the fund
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. There is no guarantee the fund will achieve its objective, and you may not get back the amount you originally invested.
The value of your investment will depend on the performance of the FTSE World Europe ex UK Index and the success of the fund in tracking that index.
Changes in currency exchange rates will affect the value of your investment.
Where market conditions make it hard to sell the fund’s investments at a fair price to meet customers’ sale requests, we may temporarily suspend dealing in the fund’s shares.
Some transactions the fund makes, such as placing cash on deposit, require the use of other financial institutions (for example, banks). If one of these institutions defaults on their obligations or becomes insolvent, the fund may incur a loss.
The fund is designed to track the FTSE World Europe Ex UK Index
The fund invests mainly in company shares and is therefore likely to experience larger price fluctuations than funds that invest in bonds and/or cash.