Tel Aviv Institutional Conference - March 12th 2018 - Brice Anger, Country Head M&G France & Israel With Jonathan Labaton, M&G Representative in ...
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Tel Aviv Institutional Conference
March 12th 2018
Brice Anger, Country Head M&G France & Israel
With Jonathan Labaton, M&G Representative in Israel
M&G Investments
Ownership Structure: Prudential plc - A strong sponsor
Mike Wells Balance Sheet
Group Chief Executive strength
S&P A+
Asia US UK/Europe Moody’s A2
Fitch A
Ratings for LT Seniors current as at 29
June 2016
Prudential Jackson National Life UK & Europe Prudential South
Corporation Asia Insurance Co (US) Insurance Operations Africa
Tony Wilkey Barry Stowe Clare Bousfield Bernard Fick
Chief Executive Chief Executive Chief Executive Chief Executive
M&G Prudential,
John Foley, Chief Executive
the combined business
Eastspring
PPM America, Inc. M&G Investments
will manage $450 billion
Investments
of assets for more than
Guy Strapp Mark Mandich Anne Richards
Chief Executive Chief Executive Chief Executive 6 million customers.
2 Source: M&G management information, August 2017
Fund management overview
All about active asset management
• Founder of the mutual fund industry in the UK
• Fund manager for a wide range of retail and
institutional clients including the internal life
fund of Prudential plc
– 68% of the UK’s top 50 pension schemes*
– 44 UK Local Government clients
– $11bn from third party European insurance
companies
• Fund management centralised in London
• 496 investment professionals across the full
range of asset classes
3 Source: M&G, 30 June 2017. * S&P Money Market Directories as at December 2016.
A UK based company…
…very visible in ski resorts across Europe
Switzerland
5
M&G assets under management
Breakdown of M&G total assets: $365bn
By asset class By client type
Cash
Property $19bn Retail
$32bn Equities Internal $94bn
$81bn $171bn
Fixed
Income Institutional
$233bn $100bn
Total assets under management of $365 billion
6 Source: M&G, 30 June 2017. Conversion rate: £1 = US$1.29895
M&G assets under management
Significant scale across all major asset classes
• Fixed Income
FI Breakdown by asset class* (£bn)
– Largest private credit investor in Europe and 2nd largest Other
Infrastructure
in the world*** Instruments**,
Equity, $3.8
Index Linked $5.2
Government Long Lease
– Ability to structure solutions to meet client needs
Bonds, $10.6 Property, $8.2
Private debt,
•
Government $30.6
Real Estate Bonds, $36.3
– World’s 6th largest manager of real estate separate
accounts^
High Yield,
$16.4
– Experienced and well resourced global platform
• Equities & Multi-Asset
– Innovative funds across the asset classes, each
designed to meet specific client requirements Investment
Grade Credit,
$131.1
– Ability to structure multi-asset solutions
Trusted partner and strong alignment of interest as asset manager
for Prudential
Source: M&G, 30 June 2017. *Please note, the constituents of methodology of the Fixed Income assets breakdown may differ slightly to the overall Fixed Income AUM due to differing methodology and the inclusion of the
7 separation of Infrastructure equity and Long Lease Property **Includes derivatives, non-cumulative preference shares and convertible bonds. *** Based on figures quoted in Private Debt Investor magazine as at 1 November 2017
st
MIFID impact our communications
Marketing
UNPRI A+ EQUITY:
Strategy & Governance 154 holdings where M&G owns
Score 2017 5% or more of the company equity
IN AODP INFRASTRUCTURE:
th Infracapital’s significant equity stake
4 Global Climate
allows M&G to drive the ESG agenda
Index for Asset Managers
and promote ESG best practice
TIER ONE FIXED INCOME:
Significant funder of UK solar
UK Stewardship Code
energy capacity
REAL ESTATE:
SENIOR ADVISORY 6 funds awarded Greenstars
COMMITTEE dedicated to ESG in the 2016 Global Real Estate
Sustainability Benchmark Survey
8
Our history
1901 • Founded as Municipal and General Securities
1931 • Launched Europe’s first mutual fund for the general public
1999 • Acquired by UK insurer Prudential plc
• First subsidiary outside the UK founded in Germany;
2001
subsequently, entering further markets in continental
Europe and, since 2012, Asia
• Today we manage assets of $365bn
2017
(as at 30 June 2017)
• People are our greatest asset – employing more
than 1,900 globally
9 Source: M&G, 30 June 2017
M&G Investments
Distribution across the globe
Netherlands* Norway Sweden Finland
Belgium 2010 2011 2010 2011
2014
Denmark
UK*
2011
1931
Germany*
France*
2001
2007
Luxembourg
Spain* 2002
2005
Austria*
Portugal 2001
2015
Greece
2016
Israel
2017
Japan*
2016
Asia 2011
USO / LatAm Singapore*
2015 Hong Kong*
Chile
2006
Switzerland* Italy*
2005 2003
Funds registered
* local offices
To interact with our clients locally
10 Source: M&G internal data as at Feb 2018M&G Investments
Leading brand awareness across Europe
Cross border brands M&G brand at market level
Rank Group name Country Rank
1 BlackRock UK 2
2 JP Morgan Italy 2
3 Fidelity Spain 4
4 Franklin Templeton France 7
5 M&G Germany 8
6 Schroders Austria 9
7 Deutsche Asset & Wealth Management Switzerland 11
8 Invesco Sweden 17
9 Pictet Belux 30
10 Aberdeen Netherlands 38
Top five UK groups by primary business drivers
Rank Brand Product Sales & account Marketing and Pricing &
preference quality management communications costs
1 Schroders Schroders Schroders M&G Vanguard
2 M&G M&G M&G Schroders Schroders
3 Invesco Invesco Standard Life JPMorgan Fidelity
4 Artemis BlackRock Fidelity Fidelity BlackRock
5 BlackRock Jupiter BlackRock Invesco Baillie Gifford
11 Source: FERI Fund Brand 50 report, March 2015Distribution channels
Distribution support tailored to client requirements
Institutional
(since 2007) Discretionary Partnerships Advisory Direct
• Investment • Asset managers • Fund • Wealth • Total: of 184,000
consultants (fund of funds) supermarkets managers Direct customers
• Pension funds • Discretionary • Life company • New model
managers links advisers
• SWFs
• Stockbrokers • Pension links • Financial
planners
• Wealth • Offshore links
managers • Nationals
• (Branches and
• Banks head office) • Networks
• Family offices • Key provincial
IFAs
• Charities
(UK only) • Mass IFA market
UK, Europe
UK, Europe & Asia UK, Austria, Germany, France, Italy UK
(all markets), Asia
12 Source: M&G, 31 December 2017M&G Investments
A history of firsts in the UK
First high
yield
corporate
First bond fund
commodity
fund
First
recovery
equity
fund 1998
First unit
trust for 1994
charities 1976
First
mutual 1971
fund 1969
First
1964 corporate
1961 bond
First fund
1954 Japanese
1931 equity
First fund
equity
First income
regular fund
savings
plan
13M&G Investments
…and the spirit of innovation continues
M&G M&G M&G M&G M&G M&G M&G M&G (Lux) M&G (Lux) M&G (Lux)
Optimal Global Dynamic European Global Income Global Global Absolute Global
Income Dividend Allocation Inflation Corporate Allocation Floating Target Return Listed
Fund Fund Fund Linked Bond Fund Fund Rate High Return Bond Fund Infrastructure
Corporate Yield Fund Fund Fund
Bond Fund
2004 2017
December July December September September November October December December October
2006 2008 2009 2010 2013 2013 2014 2016 2016 2017
The value of investments, and the income from them, will fluctuate. This will cause the Fund price to
fall as well as rise and you may not get back the original amount you invested.
14 Source: M&G, 30 November 2017M&G Investments - Our capabilities
Investment Teams - Overview by scope
MULTI Private
EQUITY FIXED INCOME
ASSET Equity
REAL
ESTATE
MA Mutual FI Mutual Real Estate Fund of
Equity Mutual Funds Public Debt ABS Private Debt Infracapital
Funds Funds Incom e funds
Multi- Com m ercial
High Grade European
Episode Global Bond Governm ent Asset Mortgage
Incom e Value Libor +1.5- Loans Core Europe Brow nfield
Funds Funds Bonds Illiquid Lending
1.75% Libor +4%
Credit L+4-5%
Investm ent Multi- Private Secured
Absolute Buy & Grade Mezz Asset Corporate Property
Leaders Recovery Gilt Funds Asian Greenfield
Return Maintain Libor +2.5- Inflation Lending Incom e
4.5% Linked (Seg) RPI +3-4%
Im pact Secured
Best Multi-
Em erging UK Dynam ic/ High Yield Investm ent Financing Lease UK
Opportunities Asset
Markets Equities Prudent Funds Grade Fund Incom e Residential
6-10% IRR Fixed Rate
Libor +3% RPI +1-2%
Restructuri
Inflation Regulatory
ng UK Enhanced
Select Basics Incom e Linked Bond High Yield Capital
Solutions Value
Funds 8-10% IRR
8-10% IRR
European Specialty Distressed
Convertible Multi-Asset
Japan Corporate Finance Fund Debt UK Core
s Credit
Bond Funds 8-10% IRR 12-15% IRR
Listed UK Corporate
Infrastructure Bond Funds
M&G Institutional Strategies
Flexible Bond
Funds
M&G Mutual Funds Absolute
Return
15 Source: M&G Internal data by Investment teams. Some of these strategies are capacity constrained and may be unavailable at certain points in time.A multi-team approach
M&G mutual funds managed in London and registered for sale in Europe
Basics Emerging Markets Select Leaders
• M&G Global Basics Fund • M&G Asian Fund • M&G European Select Fund • M&G Global
• M&G Global Emerging
Markets Fund • M&G European Smaller Companies Fund Leaders Fund
• M&G (Lux) Emerging Markets • M&G Global Select Fund
Income Opportunities Fund • M&G Pan European Select Fund
Equities
Income Value Recovery UK Equities Japan
• M&G Global Dividend Fund • M&G European • M&G Recovery • M&G UK • M&G Japan Fund
• M&G Pan European Dividend Fund Strategic Value Fund Fund Select Fund • M&G Japan
• M&G North American Dividend • M&G North American • M&G Global Smaller
Fund Value Fund Recovery Fund* Companies Fund
• M&G Global Floating Rate High Yield Fund
• M&G Corporate Bond Fund • M&G Global Government Bond Fund
• M&G European Corporate Bond Fund • M&G Global High Yield Bond Fund
Mutual • M&G European High Yield Bond Fund
• M&G Global Macro Bond Fund
Fixed • M&G European Inflation Linked Corporate Bond Fund
• M&G Emerging Markets Bond Fund • M&G Optimal Income Fund
Income • M&G Global Corporate Bond Fund • M&G Short Dated Corporate Bond Fund
• M&G (Lux) Emerging Markets Hard Currency Bond Fund • M&G (Lux) Absolute Return Bond Fund
• M&G (Lux) Global High Yield ESG Bond Fund
• M&G Dynamic Allocation Fund • M&G Income Allocation Fund Convertibles
Multi-
• M&G Episode Defensive Fund • M&G Prudent Allocation Fund
Asset • M&G Episode Macro Fund • M&G (Lux) Global Target Return Fund • M&G Global Convertibles Fund
The value of investments, and the income from them, will fluctuate. This will cause the Fund price to fall as well
as rise and you may not get back the original amount you invested.
Giving managers the freedom to think independently and
act on the basis of their investment beliefs
16 Source: M&G, 31 October 2017Why invest with M&G?
Dedicated to delivering the best investment performance
• Experienced fund management specialists with the freedom to think
independently and act on their conviction
• Extensive in-house research resource undertaking fundamental,
proprietary analysis
• Understanding of risk integral to investment processes
• Innovative funds across the asset classes, each designed to meet
specific client requirements
• Full transparency in client reporting and communications
Freedom to seek opportunities – expertise and
experience to see them through
17M&G distribution presence in Israel
Commitment to the market
• Over $800m of assets under management on behalf of institutional clients in
Israel
• Appointment of Jonathan Labaton of Missura Capital as local representative
for M&G in Israel
– Jonathan Labaton has been living in Israel since 2001
– Serving Israel's Institutional clientele contributing with his vast experience in asset
management and fund investing
– As Head of Alternative Investments at Israel's largest insurance company, Jonathan
deployed over $5 billion of capital across fund managers in Equities, Fixed Income,
Real Estate Debt, Hedge Funds and ABS throughout his 12-year career.
18 Source: internal M&G data, as at 30th June 2017.*As at 31st December 2017.www.episodeblog.com
Our blogs
www.bondvigilantes.com
@episodeblog www.equitiesforum.com
www.twitter.com/bondvigilantes
19For Investment Professionals only. The distribution of this document does not constitute an offer or solicitation. Past performance is not a guide to future
performance. The value of investments can fall as well as rise. There is no guarantee that these investment strategies will work under all market conditions or
are suitable for all investors and you should ensure you understand the risk profile of the products or services you plan to purchase.
This document is issued by M&G Investment Management Limited. The services and products provided by M&G Investment Management Limited are available
only to investors who come within the category of the Professional Client as defined in the Financial Conduct Authority’s Handbook. They are not available to
individual investors, who should not rely on this communication. Information given in this document has been obtained from, or based upon, sources believed
by us to be reliable and accurate although M&G does not accept liability for the accuracy of the contents. M&G does not offer investment advice or make
recommendations regarding investments. Opinions are subject to change without notice. Reference in this document to individual companies is included solely
for the purpose of illustration and should not be construed as a recommendation to buy or sell the same.
This document has not been approved by the Israel Securities Authority and will only be distributed to Israeli residents in a manner that will not constitute "an
offer to the public" under sections 15 and 15a of the Israel Securities Law, 5728-1968 ("the Securities Law") or section 25 of the Joint Investment Trusts Law,
5754-1994 ("the Joint Investment Trusts Law "), as applicable. The [Products] are being offered to a limited number of investors (35 investors or fewer during
any given 12 month period) and/or those categories of investors listed in the First Addendum ("the Addendum") to the Securities Law, ("Sophisticated
Investors") namely joint investment funds or mutual trust funds, provident funds, insurance companies, banking corporations (purchasing [Products] for
themselves or for clients who are Sophisticated Investors), portfolio managers (purchasing [Products] for themselves or for clients who are Sophisticated
Investors), investment advisors or investment marketers (purchasing [Products] for themselves), members of the Tel-Aviv Stock Exchange (purchasing
[Products] for themselves or for clients who are Sophisticated Investors), underwriters (purchasing [Products] for themselves), venture capital funds engaging
mainly in the capital market, an entity which is wholly-owned by Sophisticated Investors, corporations, (other than formed for the specific purpose of an
acquisition pursuant to an offer), with a shareholders equity in excess of NIS 50 million, and individuals investing for their own account, in respect of which at
least one of the following applies: the total value of their cash, deposits, financial assets (as defined in the Investment Advice Law) and securities traded on a
stock exchange licensed under the Securities Law (together, “Liquid Assets”) exceeds NIS 8 million (approximately US$2.1 million); their level of income over
each of the preceding two years exceeds NIS 1.2 million (approximately US$300,000), or the level of income of their "family unit" exceeds NIS 1.8 million
(approximately US$470,000); or the aggregate value of all their Liquid Assets exceeds NIS 5 million (approximately US$1.3 million) and their level of income
over each of the preceding two years exceeds NIS 600,000 (approximately US$160,000), or the level of income of their "family unit" exceeds NIS 900,000
(approximately US$240,000); each as defined in the said Addendum, as amended from time to time, and who in each case have provided written confirmation
that they qualify as Sophisticated Investors, and that they are aware of the consequences of such designation and agree thereto; in all cases under
circumstances that will fall within the private placement or other exemptions of the Joint Investment Trusts Law, the Securities Law and any applicable
guidelines, pronouncements or rulings issued from time to time by the Israel Securities Authority.
This document may not be reproduced or used for any other purpose, nor be furnished to any other person other than those to whom copies have been sent.
Any offeree who purchases a [Product] is purchasing such [Product] for its own benefit and account and not with the aim or intention of distributing or offering
such [Product] to other parties (other than, in the case of an offeree which is a Sophisticated Investor by virtue of it being a banking corporation, portfolio
manager or member of the Tel-Aviv Stock Exchange, as defined in the Addendum, where such offeree is purchasing [Product] for another party which is a
Sophisticated Investor). Nothing in this [prospectus] should be considered investment advice or investment marketing as defined in the Regulation of
Investment Counselling, Investment Marketing and Portfolio Management Law, 5755-1995.
Investors are encouraged to seek competent investment counselling from a locally licensed investment counsel prior to making the investment. As a
prerequisite to the receipt of a copy of this document a recipient may be required by the Fund to provide confirmation that it is a Sophisticated Investor
purchasing [Products] for its own account or, where applicable, for other Sophisticated Investors.
This document does not constitute an offer to sell or solicitation of an offer to buy any securities other than the [Shares] offered hereby, nor does it constitute
an offer to sell to or solicitation of an offer to buy from any person or persons in any state or other jurisdiction in which such offer or solicitation would be
unlawful, or in which the person making such offer or solicitation is not qualified to do so, or to a person or persons to whom it is unlawful to make such offer or
solicitation.M&G Investments is a business name of M&G Investment Management Limited and is used by other companies within the Prudential Group. M&G
Investment Management Limited is registered in England and Wales under number 936683 with its registered office at Laurence Pountney Hill, London EC4R
0HH. M&G Investment Management Limited is authorised and regulated by the Financial Conduct Authority.
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