pand presentation citywire luxembourg 22 apr 10
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22 April 2010
Citywire LuxembourgM&G Pan European Dividend Fund
2
The fund manager
• Joined M&G in 1999 as an insurance equity analyst
• Member of the European Equities team since 2001
• CFA charterholder
• Manager of the M&G Pan European Dividend Fund and the M&G European Strategic Value Fund
• Manager of Prudential dividend-based European equities mandates since 2002
Richard Halle
3
Agenda
• Dividend strategies work over the long term
• Why now is a pivotal moment in the dividend cycle
• M&G’s approach and dividend offering in Europe
4
0
20
40
60
80
100
120
140
160
1975
1977
1979
1981
1983
1985
1987
1989
1991
1993
1995
1997
1999
2001
2003
2005
2007
2009
Reb
ased
to 1
975
= 1
Above average dividend yield Below average dividend yield
High dividend paying stocks outperformThe long-term view
Source: SocGen, The Global Income Investor, February 2010. Global ex-US universe
Cumulative returns from buying stocks with above-average versus below-average dividend
5
80
100
120
140
160
180
200
220
240
260
280
300
320
Feb 60 Feb 65 Feb 70 Feb 75 Feb 80 Feb 85 Feb 90 Feb 95 Feb 00 Feb 05 Feb 10
M&G Charifund (M&G’s oldest dividend fund)
Charifund FTSE All-Share Index
Source: Morningstar, M&G Statistics as at 31 January 2010. Bid to bid, net income reinvested
Please note that this fund is not registered in Switzerland and is not available for public distribution
Relative to FTSE All-Share Index
Cumulative total return relative to index
50-year real life experience showing dividendinvesting works
6
Dividend strategies work over the long term
• Dividends account for the majority of equity returns
• Dividend yields are a useful valuation signal
• Dividends impose discipline on corporate management
• Dividend yield targets impose discipline on fund manager
7
Agenda
• Dividend strategies work
– Why has there been so little interest in dividends?
• Why should there be interest now
• M&G’s approach and dividend offering in Europe
8
-5
0
5
10
15
20
25
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
Average 7.5%
Good returns did not push people to seek risky equities
Long-term government bond performance
Source: Merrill Lynch, EMU Direct 31 December 2009
To
tal
retu
rn %
Bull market in bonds
9
-60-50-40-30-20-10
010203040506070
19
75
19
76
19
77
19
78
19
79
19
80
19
81
19
82
19
83
19
84
19
85
19
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19
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19
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19
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19
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19
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19
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19
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19
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19
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19
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19
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19
98
19
99
20
00
20
01
20
02
20
03
20
04
20
05
20
06
20
07
20
08
20
09
Price return average 1975-2000 average 2001-2009
Average 15.3%
Average -2.4%
European equity returnsT
ota
l re
turn
%
Bull markets conditioned investors to focus on capital gains…
Source: Datastream, European market, end 1974 to end 2009
10
Agenda
• Dividend strategies work over the long term
• Why now is a pivotal moment in the dividend cycle
• M&G’s approach and dividend offering in Europe
11 Source: DataStream, European market dividend yield versus nominal 10yr German government bond yield from Dec 1979 to March 2010
0
2
4
6
8
10
12
1979
1980
1981
1982
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
Yiel
d, %
Dividend yield Excess Bond Yield - Dividend Yield
Equity dividend yields now higher than bond yields
Equities yielding more than bonds
12
Are government bonds really risk-free?
0
200
400
600
800
Ireland Spain Germany EU UK France Portugal USA Greece Italy
Official net debt Total net liabilities (on and off balance sheet)
Source: SocGen, National Center for Policy Analysis, OECD. February 2010
Debt as % of GDP
13 Source: M&G, Factset, FTSE World Europe, December 2009
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
%Corporate balance sheets are strong
Debt to common equity
European corporates becoming less leveraged
14
Dividends have been quickly rebased
A record year for dividend cuts in Europe
Source: ScoGen, February 2010
-40-30-20-10
01020304050
1989
1991
1993
1995
1997
1999
2001
2003
2005
2007
2009
European dividend growth Y/Y%
15
Why now?
Source: M&G, January 2010, PIMCO, Investment Outlook, July 2009
Even non-dividend investors like dividends
Aled Smith, M&G
“Everybody knows about the power of dividends and how they contribute to total shareholder return. .. The top five countries in dividend growth are the same top five countries in total
shareholder return”
Bill Gross, PIMCO
“Investors who stuffed themselves on a constant diet of
asset appreciation … should stress secure income offered by
bonds and stable dividend-paying equities”
16
Agenda
• Dividend strategies work over the long term
• Why now is a pivotal moment in the dividend cycle
• M&G’s approach and dividend offering in Europe
17
Investment philosophy
• Dividends are undervalued by a market seeking instant
gratification, despite being the largest component of total return
• Not all dividends are created equal
• High dividend yields are a good place to find attractive risk/reward
opportunities
• High dividend yields do not necessarily mean low growth
18
M&G Pan European Dividend Fund
• Invest in companies with quality yield and positioned to grow the dividend
• Grow the portfolio’s dividend income ahead of inflation
• Portfolio yield premium to market typically 10-30%
Investment objectives
What are the key portfolio characteristics?
19
-20-15-10-50
5101520
3 years 5 years 10 years
Ann
ualis
ed re
turn
s, %
Above-average yield portfolio Balance sheet strength Earnings cover
Why do we focus on quality yield?
Source: Soc Gen, The Global Income Investor, February 2009
Balance sheet strength adds to returns and protects against downside
European ex UK total returns of different dividend yield strategies
20
Dividends are the strongest signal of capital allocation discipline
What do we mean by quality yield?
Dividend cover Balance sheet strengthWillingness to pay
dividends
21
Investing in growing dividends
Looking for sustainable, quality, growing dividends
Turnaround / improving companies
Out of favourhigh-quality companies
Highly operationally /
financially leveraged companies
Sustainable, reliable dividend
growers
Investment universe
SMART DIVIDEND SCREEN
Balance sheet qualityDividend coverEarnings qualityAsset backing Implied returns
Dividend track record
22
Investing in growing dividends
Looking for sustainable, quality, growing dividends
Turnaround / improving companies
Out of favourhigh-quality companies
Highly operationally /
financially leveraged companies
Sustainable, reliable dividend
growers
23
Out of favour, quality companies
Dividend yield 4.75%
Dividend cover 2.3x
Balance sheet strength
Excess capital: €6bn buffer
Willingness to pay dividends
5-year dividend CAGR: 34.5%
Share buybacks
Munich Re
Source: Bloomberg, M&G, KBW, 29 March 2010
24
Sustainable, reliable dividend growers
Dividend yield 3.20%
Dividend cover 2.0x
Balance sheet strength
Virtually debt free
Sale of Alcon
Willingness to pay dividends
5-year dividend CAGR: 14.2%
Share buybacks
Nestlé
Source: Bloomberg, M&G, JP Morgan, 29 March 2010
25
Turnaround, improving companies
Dividend yield 2.96%
Dividend cover 2.5x
Balance sheet strength
25% of capital employed in businesses to be sold
8.0x interest cover
Willingness to pay dividends
5-year dividend CAGR: 4.3%
Committed to cashflow-returning businesses
New management
Smiths Group – industrial and technology conglomerate
Source: Bloomberg, M&G, 29 March 2010
26
What to avoid – The wrong type of dividend
Dividend yield 3.80%
Dividend cover 2.1x
Balance sheet strength
High earnings volatility
High debt levels
Debt/equity: 106.7%
Willingness to pay dividends
5-year dividend CAGR: 0.02%
Poor acquisition record
Numerous rights issues"
Lafarge – Construction materials
Source: Bloomberg, M&G, 29 March 2010
0.0
1.0
2.0
3.0
4.0
5.0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
0
50
100
150
200
250
300
350
DPS, € Shares outstanding, m (rhs)
Dividends per share and shares outstanding
27
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
4.5 Gross Dividend yield, %
Yield premium of 23%
Portfolio characteristics
Source: M&G, Bloomberg, March 2010, versus FTSE World Europe index
Higher and more sustainable yield than the benchmark
0.0
0.20.4
0.6
0.8
1.01.2
1.4
1.61.8
2.0Debt/EBIDTA (ex financials)
Lower debt
0.00
0.01
0.01
0.02
0.02
0.03
0.03
0.04
0.04
0.05 Dividend cut probability
Greater resilience to cuts
M&G Pan European Dividend Fund FTSE World Europe Index
28
M&G Pan European Dividend Fund
-50%
-40%
-30%
-20%
-10%
0%
10%
Jul-08 Oct-08 Jan-09 Apr-09 Jul-09 Oct-09 Jan-10
Cum
ulat
ive
retu
rn
M&G Pan European Dividend Fund (€) FTSE World Europe (€)
Cumulative returns since launch
Source: M&G, Datastream, euro share class A, bid to bid, after fees, from 18/07/2008 to 31/03/2010
29
Richard Halle’s internal European dividend mandate
0%
5%
10%
15%
20%
25%
Dec-01
Jun-02
Dec-02
Jun-03
Dec-03
Jun-04
Dec-04
Jun-05
Dec-05
Jun-06
Dec-06
Jun-07
Dec-07
Jun-08
Dec-08
Jun-09
Dec-09
Cum
ulat
ive
retu
rn
Excess returns over benchmark
14.3%
Cumulative outperformance since 2002
Source: M&G, Xamin, monthly returns in euros, gross of fees, 31/12/2001 to 31/03/2010
The Pan European segment of the Prudential World Value Fund is a dividend-based mandate managed by Richard Halle since 31/12/01. The M&G Pan European Dividend Fund follows the same investment process and was launched on 18/07/08.
Base mandate replicated in the M&G Pan European Dividend Fund – Successful, tried and tested approach
30
Pan European Dividend Fund
• Dividends deliver higher total returns
• Now is the time to invest in dividends
• M&G has 50 years experience in managing dividend strategies
• Proven approach of our European mandates
Summary
31
Appendix
AppendixM&G Pan European Dividend Fund
32
Fund facts
• Fund manager: Richard Halle (since July 2008)
• Launch date: 18 July 2008
• Fund size: €26.1 million
• Benchmark: FTSE World Europe Index
• Fund manager objective: “Long term capital growth from a
portfolio of European companies”
Source: M&G as at 31 March 2010
M&G Pan European Dividend Fund
33
Top 10 holdings
Source: M&G, as at 31 March 2010
Name Managed Benchmark Relative
BP 5.4 2.0 3.4Total 5.0 1.6 3.4Sanofi-Aventis 5.0 1.1 3.9Vivendi 4.4 0.4 4.1Vodafone 4.2 1.4 2.8TNT 3.8 0.1 3.7BNP Paribas 3.5 1.0 2.5HSBC 3.5 2.0 1.5E.On 2.7 0.9 1.8Credit Suisse 2.6 0.7 2.0
34
Sector breakdown
Sector Managed Benchmark Relative
Financials 20.3 23.3 -3.0
Consumer Goods 15.6 14.3 1.3
Oil & Gas 12.6 10.5 2.2
Consumer Services 10.7 7.0 3.7
Health Care 9.8 8.1 1.7
Telecommunications 9.5 6.5 3.0
Industrials 8.9 10.4 -1.6
Utilities 6.1 8.0 -1.9
Basic Materials 5.1 9.3 -4.2
Technology 1.2 2.7 -1.5
Cash 0.2 0.0 0.2
Source: M&G, as at 31 March 2010
35
-6
-4
-2
0
2
4
6
Cons. Serv.
Telcos
Cons. G
oods
Oil & G
as
Health C
are
Cash
Utilities
Industrials
Technology
Financials
Basic Materials
Activ
e w
eigh
ts, %
Sep-09
Dec-09
Mar-10
Current fund positioning
Source: M&G, end March 2010
Active weights
Active weights by industry and quarter, %
Active weights, %
Consistent underweight in basic materials, financials;overweight in consumer services, telcos
36
Country breakdown
Country Managed Benchmark Relative
Austria 1.1 0.8 0.2Austria 1.1 0.8 0.2Belgium 3.0 2.3 0.7Cash 0.2 0.0 0.2Denmark 0.0 1.6 -1.6Eire 0.5 0.4 0.1Finland 1.2 1.7 -0.5France 22.9 18.2 4.7Germany 16.4 11.6 4.8Greece 2.0 0.7 1.3Hungary 0.0 0.3 -0.3Italy 2.1 5.9 -3.9Netherlands 13.2 4.2 9.1Norway 0.8 1.9 -1.1Poland 0.0 1.1 -1.1Portugal 0.0 0.9 -0.9Spain 1.4 6.9 -5.5Sweden 3.5 3.9 -0.4Switzerland 9.3 10.2 -0.9United Kingdom 22.4 27.3 -4.8
Source: M&G, as at 31 March 2010
37 Source: M&G, as at 31 March 2010
Market cap band Fund % Index % Relative %
>€ 50 billion 41.4 29.3 12.1
€25 - €50 billion 17.2 27.2 -10.0
€5 - €25 billion 27.5 33.6 -6.1
€2.5 - € 5 billion 8.5 8.0 0.6
<€ 2.5 billion 5.1 1.9 3.1
Cash 0.2 0.0 0.2
Market cap split
38
Portfolio skyline – M&G Pan European Dividend FundTrue to label – dividend measures dominate
Source: Style Research as at end March 2010
-3
-2
-1
0
1
2
3
4
5
Boo
k to
Pric
e
Div
iden
d Y
ield
Ear
ning
s Y
ld
C'F
low
Yie
ld
Sal
es to
Pric
e
EB
ITD
A to
Pric
e
IBE
S D
iv Y
ld
IBE
S E
ngs
Yld
IBE
S S
ales
Yld
Sal
es to
EV
EB
ITD
A to
EV
Rtn
on
Equ
ity
Ear
ning
s G
row
th
Inco
me/
Sal
es
Sal
es G
row
th
IBE
S 1
2Mth
Gr
IBE
S 1
Yr
Rev
IBE
S S
ales
12m
Gr
IBE
S E
ngs
LTG
IBE
S S
ales
LT
G
Sus
tain
able
Gro
wth
Mar
ket C
ap
Log
Mar
ket C
ap
Mar
ket B
eta
Mom
entu
m S
T
Mom
entu
m M
T
Deb
t/Equ
ity
For
eign
Sal
es
Ear
ning
s G
r S
tabi
lity
Sal
es G
r S
tabi
lity
Low
Acc
rual
s
Std
Dev
Sustainable dividends from less volatile firms
Portfolio tilts vs. Benchmark
Value Growth
Sta
nd
ard
dev
iati
on
fro
m b
ench
mar
k m
ean
Other
39
Portfolio construction
Fund Yield
Index Yield
0.0
2.0
4.0
6.0
8.0
10.0
12.0
OPA
P SA
DEUT
SCHE
TEL
EKO
M
PUBL
IC P
OW
ER C
OR
TELE
KOM
AUS
TRIA
VIVE
NDI
BP P
LC
VODA
FONE
GRO
UP
E.O
N AG
TOTA
L SA
RWE
AG
GLA
XOSM
ITHK
LINE
SWIS
SCO
M A
G-R
EG
HOM
E RE
TAIL
GRO
U
BRIT
AM
ER T
OBA
CC
BALO
ISE
HOL-
REG
REPS
OL
YPF
SA
MUE
NCHE
NER
RUE-
R
SANO
FI-A
VENT
IS
ALLI
ANZ
SE-R
EG
SAIN
SBUR
Y PL
C
WO
LTER
S KL
UWER
STAT
OIL
ASA
ROCH
E HL
DG-G
ENUS
GRO
UPE
BRUX
LAM
B
FBD
HOLD
ING
S PL
C
SOLV
AY S
A-A
SVEN
SKA
CELL
-B
PRUD
ENTI
AL P
LC
UNIB
ET G
ROUP
-SDR
CRED
IT S
UISS
-REG
UNIL
EVER
NV-
CVA
NOKI
A O
YJ
CFAO
AKZO
NO
BEL
AXA
HSBC
HLD
GS
PLC
NEST
LE S
A-RE
G
SMIT
HS G
RP P
LC
TNT
NV
INTE
SA S
ANPA
OLO
TOM
KINS
PLC
BNP
PARI
BAS
BIC
KPN
(KO
NIN)
NV
IMER
YS S
A
SIEM
ENS
AG-R
EG
HEIN
EKEN
HLD
G
VALE
O S
A
DAIM
LER
AG
BAYE
R M
OTO
REN
WK
LEO
NI A
G
PART
YGAM
ING
PLC
Source: M&G, 15 April 2010
Dividend yield by holding
Combining high yielding names with stocks that will grow their dividend
High yielders Dividend growers
40
Dividend growth counts almost as much as dividend yield
Investment process designed to capture both dividend yield AND dividend growth
Contribution to total real returns – US data since 1871 (5-year periods)
Source: SG Global Strategy Research as at February 2009
0
20
40
60
80
100
Dividend yield Growth in dividend Change in valuation
41
M&G Pan European Dividend Fund
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
Jul-08 Oct-08 Jan-09 Apr-09 Jul-09 Oct-09 Jan-10
Stan
dard
dev
iatio
ns a
bove
ben
chm
ark
Trailing dividend yield Forecast dividend yield
Evolution of dividend yield bias
Consistently high dividend yield bias
Source: M&G, Barra, since launch (July 2008) to February 2010
42
6.0
-0.7
-3.2
-0.8
3.9
9.0
2.9
-0.7-1.6
-4
-2
0
2
4
6
8
10
2002 2003 2004 2005 2006 2007 2008 2009 2010 YTD
Richard Halle’s internal European dividend mandate
Annual investment returns vs. MSCI Europe since tenure (31 December 2001)
Source: M&G, Xamin, portfolio returns (gross of fees), in sterling, to 31/03/2010
Calendar year performance since 2002
43
Portfolio construction
• Focused portfolio of 40-60 stocks
• Sector, geographical or market cap biases are a by-product of bottom-up stock selection
• Stock weightings ranked accordingly to valuation and conviction
44
Recent new purchases and completed sales
New purchases Completed sales
Oct-09 Leoni None
Nov-09 None None
Dec-09 CFAO None
Jan-10 None None
Feb-10 None Anglo American, Tessenderlo
Mar-10 FBD Holdings, Prudential None
Source: M&G, March 2010
M&G Pan European Dividend Fund
45
M&G European Equities team
46
CHANGE
M&G EuropeanStrategic Value
M&G Pan European Dividend Fund
M&G Global Convertibles Fund
M&G Pan European
M&G EuropeanSmaller Companies
M&G European
M&G European Special Situations
M&G European Equities – product rangeThree approaches to delivering performance
Product range covering all client needs
VALUEGROWTH
47
Time
Returns
Understanding the company lifecycleBringing the three approaches together…
…and exploiting market inefficiency across the company lifecyle
Value
M&G European Strategic Value Fund
M&G European Special Situations Fund
Change
M&G Pan European Fund
Growth
48
European Equities Team
M&G European Equities
James Alexander(Head of Analyst team)
Chantal WaightJujhar Sohi
Gillian Tiltman
Financials
Consumer
Alistair SmithAlly Brownsword
Anita Ahuja
Industrial & Energy
Graham PhillipsSachin Oza
John Weavers
TMTUpin Dattani
Michael MooreRory Alexander
Portfolio analyst
David Romaní
Fund managers’ assistants
Simon ConnerMaria Municchi
Portfolio Strategy & Risk
Tim ShortIrene Tunkel
Juan Pablo SalgadoRitu Vohora
Source M&G, March 2010
Industry Analyst Team
GrowthGiles Worthington
Charles AnnissChange
Michael StiasnyValue
Richard Halle
Daniel White
ConvertiblesLéonard Vinville
Research co-ordinator
Natalie Johnson
An established structure of talent and resources
49
Fund management teamM&G European Equities
Name Position FundJoined M&G
inYears at M&G
Years of investment experience
Giles Worthington
Head of team
Fund managerM&G Pan European Fund 2001 9 14
Charles Anniss Fund manager M&G European Smaller Companies Fund 2000 9 9
Michael Stiasny Fund managerM&G European Special Situations Fund
M&G European Fund1998 11 11
Richard Halle Fund managerM&G European Strategic Value Fund
M&G Pan European Dividend Fund1999 11 11
Daniel White Dedicated analyst M&G European Strategic Value Fund 2005 4 7
Léonard Vinville Fund manager M&G Global Convertibles Fund 2002 8 15
Average 9 11
Source: M&G, March 2010
50
Team biosM&G European Equities
Source: M&G, March 2010
Name Bio
Giles Worthington
Giles Worthington joined M&G in March 2001 as a fund manager on the European desk. He is head of the M&G European Equities team and fund manager of the M&G Pan European Fund. In 1995, Giles joined Invesco Fund Managers where he managed segregated European smaller companies funds and a global smaller companies fund. Prior to this, Giles worked for Simmons & Simmons, the law firm. Giles graduated from St Hugh’s College, Oxford, with a MA in modern history.
Charles Anniss
Charles Anniss joined M&G in December 2000 as a member of the investment communications team and became an analyst on the equities team in October 2003, focusing on European smaller companies. He became co-manager of the M&G European Smaller Companies Fund with Giles Worthington in March 2006 and was appointed sole manager of the fund in January 2007. He graduated in French and Spanish from Bristol University and is a CFA charterholder.
Michael Stiasny
Michael Stiasny joined in 1998 as an equity analyst, becoming head of the pan-European equity research team in February 2005. He was appointed co-manager of the M&G European Fund in June 2007, becoming sole manager in February 2008. He also became manager of the M&G European Special Situations Fund on its launch in February 2008. Michael graduated in philosophy, politics and economics from Oxford University. He is also a CFA charterholder.
Richard Halle
Richard Halle joined M&G in 1999 as an investment analyst specialising in the insurance sector. Since 2002, he has been a member of the European equities team and in 2008 he was appointed fund manager of the M&G European Strategic Value Fund and M&G Pan European Dividend Fund . Before joining M&G, Richard worked as a security analyst for the Sedgwick Group. Richard graduated from the University of Natal in South Africa with a bachelor of commerce and is a chartered financial analyst (CFA) charterholder.
Daniel WhiteDaniel White joined M&G’s analyst team in 2005. He is a member of the European team, responsible for analysing pan-European companies. Daniel previously worked at Deloitte & Touche as an accountant. He graduated from the University of Southampton with a BSc in oceanography in 2001. In 2005, he qualified as a chartered accountant.
Léonard Vinville
Leonard Vinville joined M&G in January 2002. He is a fund manager in the European equity team. responsible for the M&G Global Convertibles Fund. Leonard previously worked at AGF AM Asset Management (Allianz-Dresdner Group) in Paris where he was the co-head of French equities fund management and responsible for assets of €1.5 billion. Prior to this, he was a financial analyst with Bleu Nuit in Paris. Leonard gained a DEUG and CPEG (Diploma and Certificate of Management Graduate Studies) from the University of Paris in 1990 and completed a master in management in 1992. In 1994, he gained a DECF – Grand Oral of the Chartered Accountant Degree. He completed an MBA (majoring in finance) at the University of London in 1996.
51
Analyst teamSector specialists supporting fund managers
NameB Coverage Education Joined M&G in Years at M&GYears of investment
experience
Ahuja, Anita Consumer MBA (Insead) 2006 4 4
Alexander, James Financials PhD (LSE) 2002 8 18
Alexander, Rory TMT BSc (Bath) 2010 1 2
Brownsword, Ally Consumer BSc (Exeter) 2006 4 4
Dattani, Upin TMT BA (Cambridge), CFA 2007 2 12
Moore, Michael TMT MSc (Warwick) 2005 4 6
Oza, Sachin Industrial & Energy MSc (LBS), CFA 2003 7 12
Phillips, Graham Industrial & Energy BSc (Melbourne) 2005 4 25
Smith, Alistair Consumer MA (Oxford) 2004 6 12
Sohi, Jujhar Financials MSc (UCL) 2008 2 8
Tiltman, Gillian Financials AB (Princeton) 2008 2 6
Waight, Chantal Financials BA (Oxford) 2008 2 13
Weavers, John Industrial & Energy BA (Oxford) 2009 3 3
Average 4 10
Source: M&G as at 31 December 2009
52
Equities Analyst team
James Alexander
Head of Equities Research team Jane Thompson
Team co-ordinator
FinancialsJames Alexander (Head of Research) BanksJujhar Sohi Speciality & Other FinanceChantal Waight Insurance
Life AssuranceGillian Tiltman Real Estate
Consumer
Industrial & Energy
TMT
Alistair Smith General RetailersConsumer StaplesPharmaceuticalsLeisure & Hotels - Pubs only
Anita Ahuja Food & Drug RetailersLeisure & Hotels - except PubsHealthcare ChemicalsHealth
Ally Brownsword Food & Drug RetailersGeneral RetailersLuxury Goods* Support ServicesAgri Chemicals (K&S, Yara, Syngenta)
AN Other
Graham Phillips Autos & TrucksBuilding, Construction, Contractors & MaterialsAerospace & DefenceSteel, CementPaper & Packaging** Support Services
Sachin Oza Electricity (excl Iberia Utilities)Other Utilities (excl UK Water)MiningOil & Gas
John Weavers Industrial ChemicalsUK WaterIberia UtilitiesOil Services
AN Other
Upin Dattani TelecomsRory Alexander Media & Entertainment
TransportMike Moore IT HardwareRory Alexander Software & Computer Services
Electronic & Electric EquipElectrical & Mechanical Engineering** Support Services
AN Other
Source: M&G as at 6 January 2010
53
This document is designed for investment professionals’ use only, not for onward distribution to any other person or entity. For Switzerland: Distribution of this document in or from Switzerland is not permissible with the exception of the distribution to qualified investors according to the Swiss Collective Investment Schemes Act, the Swiss Collective Investment Schemes Ordinance and the respective Circular issued by the Swiss supervisory authority ("Qualified Investors"). Supplied for the use by the initial recipient (provided it is a Qualified Investor) only.
In Spain the Funds are registered for public distribution under Art. 15 of Act 35/2003 on Collective Investment Schemes as follows: Investment Funds (1) reg. no 390, Investment Funds (2) reg. no 601, Investment Funds (3) reg. no 391, Investment Funds (7) reg. no 522, Global Dividend Fund reg.no 713 and Optimal Income Fund reg. no 490. The collective investment schemes referred to in this document (the "Schemes") are open-ended investment companies with variable capital, incorporated in England and Wales.
This information is not an offer or solicitation of an offer for the purchase of investment shares in one of the Funds referred to herein. Purchases of a Fund should be based on the current prospectus. This prospectus, simplified prospectus, annual report and subsequent semi-annual report, are available free of charge, in paper form, from the ACD: M&G Securities Limited, Laurence Pountney Hill, London, EC4R 0HH, GB, or one of the following: M&G International Investments Ltd., Niederlassung Deutschland, Joachimstaler Straße 10-12, D-10719 Berlin, J.P. Morgan AG, Junghofstr 14, D-60311 Frankfurt am Main, M&G International Investments Ltd, Raiffeisen Zentralbank Österreich AG, Am Stadtpark 9, A-1030 Wien, J.P. Morgan Bank Luxembourg S.A., 5 Rue Plaetis, L-2338 Luxembourg, Allfunds Bank, C/Nuria, 57, Mirasierra, E-28034 Madrid, Cassa Centrale Raiffeisen dell'Alto Adige S.p.A, via Laurin I, I-39100 Bolzano, M&G International Investments Limited 90 avenue des Champs Elysées, 75008, Paris, France or from the French centralising agent of the Fund: RBC Dexia Investors Services Bank France, M&G International Investments Ltd., Stockerhof Dreikönigstrasse 31a, CH-8002, Zürich, Switzerland.
Before subscribing you should read the prospectus, which includes investment risks relating to these funds. This financial promotion is published by M&G International Investments Ltd. (Registered Office: Laurence Pountney Hill, London EC4R OHH) authorised and regulated by the Financial Services Authority and registered with the CNMV in Spain.