M&G launches Defensive fund in new episode for multi-asset team

M&G has launched the M&G Episode Defensive fund as part of a revamp of its multi-asset fund range, which specialises in investing across shares, bonds, property and cash.

The new fund will be managed by Eric Lonergan and will aim to minimise stock market volatility while gaining exposure to the multi-asset strategy developed by the team led by Dave Fishwick (pictured) over the past decade.

Alongside the launch, M&G is re-branding the multi asset range under the Episode label, to reflect the team’s aim to deliver returns through a combination of asset classes considered to be mis-priced due to market ‘episodes.’

The full re-branded range will comprise five funds, reflecting different risk levels and needs of investors. They will be: the Defensive fund, the Income fund, the Balanced fund, the Growth fund and the Macro fund . Both the Defensive fund and Macro funds can take long positions (buying an asset to see its price rise) and short positions (hoping to make money if it falls in value). 

Andrew Watson, head of advisory and partnerships at M&G, said: ‘Clients told us they liked the approach employed by the multi-asset team but wanted it tailored to a range of risk appetites.'

The Macro fund is designed to be the most flexible in the range, targeting returns that are higher than you would get from equities (shares) with lower volatility than you would get from shares over the medium term.

Lonergan also co-manages the M&G Macro Episode fund, which has struggled over the last year, losing 8.1% versus a 10.5% rise in the dollar denominated MSCI World index.