M&G (Lux) Global Emerging Markets Fund

Emerging market equities have had their weakest year since the financial market crisis in 2022. However, the picture has brightened recently with the reopening of the economy in China after the end of the zero-covid policy, the fading shock of rising U.S. interest rates, and an easing headwind from the US dollar. While many equity strategies in the emerging markets tend to be growth-oriented, we believe it could be worth taking a look at value stocks there. On the one hand, the valuations of value stocks from emerging markets currently appear extremely favourable, and on the other hand, the new environment with higher interest rates could also speak in favour of value stocks from a macroeconomic perspective. Irrespective of this, emerging markets offer a highly interesting environment for valuation-oriented investors like us, with many attractive investment opportunities to be discovered. The M&G (Lux) Global Emerging Markets Fund has a clear value approach. Fund manager Michael Bourke focuses on three core criteria in his stock selection process: 1. return on capital, 2. valuation and 3. shareholder orientation. The result is a diversified value portfolio with what we believe is an attractive risk-reward profile. Therefore, investors are currently asking themselves the following questions, among others: - What are the reasons for emerging market equities, and, especially, value stocks? - What impact could a slower-growing China have on emerging equity markets? - In which emerging markets could particularly attractive investment opportunities be found at present? - Where are the potential risks? The value of 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 and you may get back less than you originally invested.