Marketing communication
This page contains marketing information
Value investing seeks to capitalise on the market’s tendency to overreact to short term uncertainty across regions, sectors and cycles. By identifying fundamentally sound companies trading at discounted valuations globally, our process aims to benefit as fundamentals re-assert themselves and market confidence returns, offering the potential for attractive long-term outcomes.
Why value now?
A compelling valuation opportunity
In recent years, investors have favoured perceived higher quality and rapidly-growing stocks, particularly in the technology sector, leaving many lower-valued stocks overlooked. As a result, the current valuation gap between the cheapest and most expensive companies has widened.
Unlocking value in unloved markets
We believe many out of favour companies are trading at attractive valuations, reflecting investors’ increasingly short-term focus and heightened perceptions of risk. This creates opportunities for active value investors to uncover mispriced businesses.
A new era for value investing
The investment environment has evolved from one characterised by stability and near-zero interest rates to one marked by greater volatility and uncertainty. In our view, these conditions can provide a more supportive backdrop for value investing.
The case for long-term value
The combination of attractive valuations and a more dynamic market environment can create opportunities for patient, selective investors to identify companies whose share prices do not fully reflect their underlying fundamentals, with the potential to benefit as value is recognised over time.
Spotlight on: M&G (Lux) Global Strategic Value Fund
Market volatility and shifting investment conditions can create opportunities for patient value investors. Despite value’s recent resurgence, wide valuation gaps remain across markets and sectors, reinforcing our belief in the long-term potential of the value style.
Using a disciplined, bottom-up investment approach, the M&G (Lux) Global Strategic Value Fund seeks to identify companies around the world trading at depressed valuations, while remaining fundamentally strong with attractive risk-reward profiles.
Value investing at M&G
“Ultimately it’s about applying one really simple idea. Find attractively valued companies and then wait for that value to be realised.”
Dan White, Head of Global Equities and interim CIO of Equities
Why M&G?
Refined process
The team seeks to capture the “value phenomenon” through a tried and tested investment process.
Consistent expertise
The philosophy and process have been used by the team for more than 20 years, navigating various market cycles and crises.
Value driven
Returns are driven by the value style and strong stock selection.
The team
Our value strategies are supported by a highly experienced team with deep expertise across global equity markets. Working collaboratively across Europe, North America and global strategies, the team draws on over two decades of investment experience and a shared commitment to rigorous fundamental research. Collectively, the team members bring diverse perspectives developed through multiple market cycles, supported by extensive sector knowledge and an established investment process.
Our value funds
This is a marketing communication. Please refer to the prospectus and to the Key information document (KID) before making any final investment decisions.
Main risks associated with these funds:
- The value and income from the fund's assets will go down as well as up. This will cause the value of your investment to fall as well as rise. There is no guarantee that the fund will achieve its objective and you may get back less than you originally invested.
- The funds can be exposed to different currencies. Movements in currency exchange rates may adversely affect the value of your investment.
- The fund invests in shares of smaller companies which may be less liquid and more volatile in price than shares of larger companies.
- Investing in emerging markets involves a greater risk of loss due to greater political, tax, economic, foreign exchange, liquidity and regulatory risks, among other factors. There may be difficulties in buying, selling, safekeeping or valuing investments in such countries.
- The fund may invest in China A shares. Investments in assets from China are subject to changeable political, regulatory and economic conditions, which may cause difficulties when selling or collecting income from these investments. In addition, such investment is made via the Stock Connect system, which may be more susceptible to clearing, settlement and counterparty risk. These factors could cause the fund to incur a loss.
- The fund holds a small number of investments, and therefore a fall in the value of a single investment may have a greater impact than if it held a larger number of investments.
- The fund could lose money if a counterparty with which it does business becomes unwilling or unable to repay money owed to the fund.
- ESG information from third-party data providers may be incomplete, inaccurate or unavailable. There is a risk that the investment manager may incorrectly assess a security or issuer, resulting in the incorrect inclusion or exclusion of a security in the portfolio of the funds.
- Please note, investing in these funds means acquiring units or shares in a fund, and not in a given underlying asset such as building or shares of a company, as these are only the underlying assets owned by the funds.
Further details of the risks that apply to these funds can be found in the funds' Prospectus.
The views expressed on this webpage should not be taken as a recommendation, advice or forecast, nor a recommendation to purchase or sell any specific security.
The value of investments will fluctuate, which will cause prices to fall as well as rise and you may not get back the original amount you invested. Past performance is not a guide to future performance.
Marketing Communication. M&G Luxembourg S.A. regulated by the Commission de Surveillance du Secteur Financier (CSSF). Registered Office: 16, boulevard Royal, L‑2449, Luxembourg.