M&G Fund Range

M&G FUND RANGE For funds available in the UK Information as at 30.06.16

Welcome to M&G 2 www.mandg.co.uk

Contents Why choose M&G? 4 An expert fund manager across all the key asset classes 4 Why choose an active fund manager? 6 Considering the risk 7 Ways to invest with M&G 8 Investing for children 9 Performance information 10 Our extensive range of funds – something for every type of investor 11 M&G equity funds 11 UK equities 11 European equities 14 Global equities 17 North American equities 21 Asian equities 22 Japanese equities 22 M&G fixed income funds 23 UK fixed income 23 European fixed income 26 Global fixed income 27 M&G multi-asset funds 31 Global multi-asset 31 M&G convertibles fund 34 Global convertibles 34 M&G property fund 35 UK property 35 Glossary 36 How to invest with M&G– next steps 39 How to contact us Back cover www.mandg.co.uk 3

Why choose M&G? Expertise, experience and resources When you are investing for your future, it is important to choose a company you can trust. M&G has over 80 years of experience managing funds. Throughout this time we have remained committed to helping our investors achieve their long-term investment goals. Our expert fund managers focus on companies themselves rather than on share prices. In fact, understanding the companies they invest in is a core principle across all asset classes. The management of our funds is underpinned by the in-depth investment knowledge of our fund managers and their dedication to increasing the real value of our customers’ wealth. Freedom to seek opportunities, power to carry them through At M&G we believe that to deliver superior performance over the long-term, our fund managers need the freedom to think independently and act on their convictions. As such they can develop their own rigorous investment strategies with the aim of achieving the best possible outcome for their investors. Scale and resources Our managers are experienced investment specialists who are fully supported in the application of their expertise. They are backed by dedicated in-house teams providing robust research and dealing capabilities, as well as by a specialist Portfolio Construction and Risk team. These teams of dedicated investment specialists play a crucial role whenever the fund manager considers a prospective investment decision. We are also able to give our fund managers access to a wide range of insights and analysis from external economists, researchers and analysts. This allows the managers to focus on what they do best – fine-tuning their investment strategies. It’s a tried and tested approach that has helped us become one of the largest active investment management companies in the UK. An expert fund manager across all the key asset classes We are investors, not traders. We invest in companies with potential, rather than chasing ‘hot stocks’ or market fashions. Even the best businesses suffer dips in their fortunes from time to time, but at M&G we refuse to be distracted by such short-term market noise. As shareholders, providing our investment case remains intact, we are very happy to support good companies through uncertain times, and that means taking a long-term approach to investment opportunities. We believe the most powerful investment tool you have is time. Equities We are one of the largest equity investment houses in the UK. Our equity fund managers are supported in-house by equity research analysts, portfolio construction and risk specialists and a corporate finance team. The Equity Research team plays a key role in helping to form the fund manager’s views in pursuit of the best investment opportunities for our customers. This support ensures that our fund managers spend their time doing what they do best – managing their funds and delivering performance. View our full range of equity funds on pages 11 to 23 or visit www.mandg.co.uk/equityrange To find out more about equity investing, view our Spin-free guide to equities brochure at www.mandg.co.uk/spinfree We are unable to give financial advice. If you are unsure about the suitability of your investment, speak to your financial adviser. 4 www.mandg.co.uk

Fixed income We are one of the UK’s largest fixed income managers with one of the City’s foremost teams of fixed income professionals (including fund managers and credit analysts). Our scale of resource enables us to conduct our own research in order to assess investment opportunities independently, rather than be wholly reliant on third party reports and ratings. The M&G Retail Fixed Interest team’s ability to make the right calls in a variety of conditions has been proven time and time again. Decisions such as being underweight in banks ahead of the credit crunch and minimising exposure to peripheral eurozone countries before the European debt crisis have kept M&G a step ahead of the competition. View our full range of fixed income funds on pages 23 to 30 or visit www.mandg.co.uk/bonds To find out more about fixed income investing, view our Spin-free guide to bonds brochure at www.mandg.co.uk/spinfree Multi-asset With M&G you can also invest across a selection of different asset classes. Multi-asset funds invest across a range of assets and can offer a diversified blend of equities, fixed income, property, cash and currencies in one single portfolio. The M&G Multi Asset team research markets and decide how much to invest in each type of asset, taking the asset allocation decision on behalf of investors. While each fund manager bears responsibility for the management decisions of their portfolios, the group functions as a true team, continually sharing and testing investment ideas and assessing a wide variety of macroeconomic data. In addition, our fund managers seek to provide genuine diversification to help to limit risk in each portfolio. They dynamically manage a blend of assets to endeavor to meet the investment objectives of each fund. View our full M&G Episode Multi Asset range on pages 31 to 33 or visit www.mandg.co.uk/multi To find out more about multi-asset investing, view our Spin-free guide to multi-asset investing brochure at www.mandg.co.uk/spinfree Commercial property Investment in commercial property can offer features of investing in equities and bonds. Property as an asset class can generate an income through rentals and also offer the potential for capital growth. M&G Real Estate is one of Europe’s largest property management companies. M&G Real Estate employs staff globally, including chartered surveyors who visit and evaluate the properties seen as potential investments. This market presence gives M&G Real Estate access to investment opportunities that are often unavailable to other investment management companies. Commercial property is a specialised sector. The level of income is not fixed and may vary. You should contact a financial adviser if you have any doubts about investing in a specialised sector such as commercial property. There is no guarantee that the value of property assets will increase. Read about the M&G Property Portfolio on page 35. To find out more about property investing, view our Spin-free guide to property brochure at www.mandg.co.uk/spinfree Please remember that when investing past performance is not a guide to future performance. The value of an investment in equities, fixed income, multi-asset or commercial property will fluctuate, which will cause fund prices to fall as well as rise and you may not get back the amount you originally invested. www.mandg.co.uk 5

Why choose an active fund manager? Active fund management In our opinion, active investment management offers the greatest potential to produce superior returns over the long-term. But it’s not something every company can do. Whatever the economic conditions, we believe there are always opportunities for those who know where to look. Our fund managers strive to add value for our investors and outperform their peers through active stock-picking. All their investment decisions are based on skill, experience and judgment and are backed by rigorous analysis. Active versus passive fund management Active investing involves expert fund managers selecting stocks with the aim of cultivating above-average returns. To preserve value in falling markets, active managers can move out of stocks likely to suffer most; they can also reduce weightings in entire sectors, or ignore them completely. They can also increase holdings in both stocks and sectors when they have a more positive view of the economic landscape. In comparison, as passively managed funds simply aim to replicate the returns of a specific index, there is little potential for them to outperform the market average, essentially limiting potential gains. Active funds on the other hand are not tied to the stock or sector weightings of an index. They have specific performance objectives, with managers selecting stocks according to individual investment strategies. That said, putting your money with an active manager means there is a risk of underperforming the market, but that is the price you pay for the possibility of outperforming it. Many experienced investors choose an active investment company simply because they look at the bigger picture. Keeping a watchful eye on themes, trends and changes in the market may reveal potential, unexplored investment opportunities. Active managers can then invest in the companies that they believe are best placed to exploit this potential. Please remember that the value of an investment in equities, fixed income, multi-asset or commercial property will fluctuate, which will cause fund prices to fall as well as rise and you may not get back the amount you originally invested. 6 www.mandg.co.uk

Considering the risk Whether we like it or not, there is an element of risk in everything that we do, and investing is no different. However there are steps you can take to help manage the risk within your portfolio. Below are some suggestions you may wish to consider. Invest in funds A fund is run by a fund manager who can invest across different companies, sectors or regions, and even asset classes if it is a multi-asset fund. This can help to spread the risk to your money across a larger number of investments, meaning you are not tied to the fortunes of a small number of companies, or to one specific area, making your investment less risky. Diversify A similar argument applies to your portfolio, which to help you minimise risk, should hold a mix of investments. Different types of assets and individual fixed income or equity funds will go up or down at different times and at different rates. Overall this should have a smoothing effect, allowing your portfolio’s performance to be more consistent. Diversifying can also help you adjust your portfolio’s risk profile according to your needs. For example, mixing higher risk investments like equities with potentially lower risk ones such as fixed income and cash at different times can help keep your investment goals on track. We believe that the specific balance of your portfolio should depend on a number of variables, including your attitude to risk, your age and your financial objectives. Take a long-term view We believe that investors should make their decisions with the long-term – five years, ten years or even longer – in mind. This is because financial markets can experience short-term turbulence, brought on by a specific event or sometimes simply erratic investor behavior, and it can take time for them to balance out again. This applies especially to riskier assets such as equities – the longer the period of investment, the more time you’ll have to ride out any short-term fluctuations in the markets. Invest regularly It can often be much safer to drip-feed your investments at regular intervals. By doing so, you can effectively smooth out the peaks and troughs of the markets. When the market price is low, your money will buy a greater number of shares. At other times, when the market is high, the opposite is true. Investing regularly in the market over time can lower the average cost of shares purchased over the long-term and it ensures that investors don’t run the risk of picking the wrong time to make a single lump sum investment decision. We believe it’s time spent in the market that can create a successful investment, not timing the market. Review your investments to match your needs As your circumstances change, it’slikely your attitude to risk will too. You should therefore ensure that you regularly review your investments to ensure they are still suited to your new risk levels to help you reach your investment goals. To find out more about risk, view our Spin-free guide to risk brochure at www.mandg.co.uk/spinfree We don’t give financial advice, so you should speak to a financial adviser if you need help deciding if an investment is right for you. Please remember that when investing, past performance is not a guide to future performance. The value of an investment in equities, fixed income, multi-asset or commercial property will fluctuate, which will cause fund prices to fall as well as rise and you may not get back the amount you originally invested. www.mandg.co.uk 7

Ways to invest with M&G Flexible products for every type of investor We offer flexible investment options to meet the needs of all types of investors. You can invest in an M&G fund either directly or via The M&G ISA, The M&G Junior ISA or The M&G Savings Plan. OEIC An OEIC (Open-Ended Investment Company) is the modern equivalent of a unit trust, and gives individual investors the same buying power as bigger investors. By investing in an M&G OEIC you will benefit from your investment being ‘pooled’ with other customers’ money, which also enables us to buy and sell shares at a very low cost. Get tax-efficient with The M&G ISA An Individual Savings Account (ISA) is a tax-efficient investment wrapper. An ISA is like a shopping trolley, into which you can put financial products such as equities, fixed income securities and cash. When you invest through an ISA, your money is protected from the taxman, so you don’t have to pay personal income tax on any interest you receive from your investments. The ISA allowance is £15,240for the tax year 2016/2017. You can invest your entire allowance in either a cash ISA, a stocks and shares ISA, an innovative finance ISA, or choose to split your allowance between these to best suit your personal investment objectives. Please note that The M&G ISA is a stocks and shares ISA only. Due to our core focus on long-term investing, The M&G ISA is not a Flexible ISA. You can also transfer cash ISAs, as well as stocks and shares ISAs, to M&G. Please check with your current provider as they may apply a charge when you transfer your investment. While your investment is being transferred it will be out of the market for a short period of time and will not lose or gain value. ISA tax rules may change in the future and ISA tax advantages depend on your individual circumstances. See the opposite page for information on The M&G Junior ISA. To find out more about The M&G ISA, view or request our M&G ISA Guide online. Invest regularly with The M&G Savings Plan This is a regular savings plan which allows you to invest as little or as much as you like in an M&G OEIC outside of The M&G ISA. By investing regularly with The M&G Savings Plan you can smooth out the ups and downs of the stockmarket from as little as £10 per month. You won’t need to find a lump sum to invest up-front, and can top it up with a one-off investment when it suits you or withdraw from it whenever you like. The M&G Savings Plan could suit if you: •have already used your current tax year ISA allowance; or •wish to start investing on behalf of a child outside of The M&G Junior ISA (see opposite page); or •would like to start a joint investment (an ISA must be held in the name of a unique investor). 8 www.mandg.co.uk

Investing for children Making one of the best provisions you can for a child’s future There are many reasons why you might like to invest on behalf of a child. Whatever your reasons, we believe that the earlier you start, the greater the service you are doing them. It can also be a good way to introduce children to the potential benefits of long-term investing of saving as early as possible. No one knows what the economic situation will be like when your children or grandchildren have grown up, but by investing a lump sum or regular sums in one or more of our funds, you’ll be making one of the best provisions you can for their future. The M&G Junior ISA Our M&G Junior ISA is a tax-efficient investment wrapper for investing on behalf of a child, either via a lump sum or regular instalments (from as little as £10) per month. An allowance of £4,080 can be invested per child for the 2016/2017 tax year, and is available to all UK resident children who do not have a Child Trust Fund (CTF) account. Like The M&G ISA, The M&G Junior ISA can hold bonds, equities, cash and even property shares, giving you even more flexibility over the future of your children’s long- term savings. Junior ISA tax rules may change in the future and Junior ISA tax advantages depend on individual circumstances. It is now possible for existing CTFs to be transferred into Junior ISA accounts. Visit our website at www.mandg.co.uk/junior to find out more about transferring your child’s CTF to M&G. Investing outside of The M&G Junior ISA In some situations – if the child you are investing on behalf of has an existing CTF, or their annual Junior ISA investment limit has been reached – you may wish to invest outside of The M&G Junior ISA. You could invest a lump sum, or make regular contributions through The M&G Savings Plan on behalf of the child. Children can only hold shares in a fund directly once they reach the age of 18, so for younger children shares can be registered in the name of an adult but designated for the child by adding, for example, their initials to the ‘designation’ field on the application form. Once the child reaches the age of 18, the shares can be transferred into their name. Simply call our Investment Helpline on 0800 389 8600or visit www.mandg.co.uk/juniorfor more information. To find out more about investing for children, view or request our Give your child a head start with M&G brochure online. We are unable to give financial advice. If you are unsure about the suitability of your investment, speak to your financial adviser. www.mandg.co.uk 9

Performance information The charts on pages 11 to 35 show the performance of two of the fund’s share classes and the average performance of the fund’s comparative sector. The fund has different share classes, with varying levels of charges and minimum investments as listed in the Key Investor Information Documents (KIIDs). We show performance for two share classes because: 1 • The performance of the representative share class, shown in ■ dark blue, is what most individuals investing directly with M&G have received. 2 • The performance of the nominated share class, shown in ■light blue , is the most appropriate to compare with the sector’s average performance, which is shown in ■ green. 1 The representative share class has the highest ongoing charge of the share classes. Performance is shown after deduction of this charge. All investors in the fund therefore received this performance or better. 2 The nominated share class is used by the Investment Association (IA)in the calculation of the comparative sector’s average performance. This share class is available for direct investment with M&G subject to minimum investment criteria, or via third parties who may charge additional fees. The performance shown takes the deduction of the ongoing charge for this share class into account but it does not take account of charges applied by any other party through which you may have invested. The representative and nominated share classes for each fund are specified on pages 11 to 35. All fund ratings and single year performance figures shown are for the representative share class only. Please refer to the glossary found on pages 36 to 37 for an explanation of the words highlighted above in bold, along with definitions of the investment terminology included throughout this document. Ratings should not be taken as a recommendation. 10 www.mandg.co.uk

M&G Dividend Fund Equities Fund manager:Phil Cliff UK Launch date:6 May 1964 Citywire: A Overall Morningstar rating: ★★ Fund description Performance over 5 years The fund aims to deliver growing income distributions by investing at least 70% of the fund in a range of UK company shares. It aims to provide a 160 dividend yield (annual income distributed as a percentage of the share price) 150 above that of the FTSE All-Share Index. Subject to this, the fund aims to deliver capital growth. To achieve the objective, the fund manager invests in the shares 0 140 144.2 of UK companies with the potential to grow their dividends over the long term. 0 136.4 1 130 131.5 He employs a bottom-up stock selection process that looks closely at company o t fundamentals and may invest across a wide range of sectors and company d 120 e sizes. The fund manager is also able to select stocks with different drivers of x e 110 dividend growth to construct a fund that has the potential to cope in a variety d n of market conditions. I 100 Representative share class: ■Sterling Class A Accumulation shares 90 0 Nominated share class: ■Sterling Class I Accumulation shares 80 0 Fund Sector: ■IA UK Equity Income sector Jun 12 Jun 13 Jun 14 Jun 15 Jun 16 0 0 1 Source of performance data: Morningstar, Inc., as at 30 June 2016 Sterling Class A K Important U shares, net income reinvested, bid to bid basis. N Past performance is not a guide to future performance. E The fund’s Sterling I Accumulation Class shares launched on 03/08/2012. A The value of investments and the income from them will fluctuate. This will cause Performance data shown prior to this date is that of the fund’s Sterling A Class shares. P B the fund price to fall as well as rise. There is no guarantee the fund objective will G V be achieved and you may not get back the original amount you invested. I Single year performance (5 years ending June) D 2 The fund invests mainly in company shares and is therefore likely to experience C larger price fluctuations than funds that invest in bonds and/or cash. K From 01.07.15 01.07.14 01.07.13 01.07.12 01.07.11 U 1 To 30.06.16 30.06.15 30.06.14 30.06.13 30.06.12 5 4 5 0 1 A Acc -2.3% 7.8% 9.2% 14.7% -0.2% 4 0 8 I Acc -1.6% 8.6% 10.0% 16.3% -0.2% 0 6 1 Sector -1.5% 7.6% 14.7% 22.2% -0.8% M&G Extra Income Fund Equities Fund manager:Richard Hughes UK Launch date:19 November 1973 Citywire: AAA Overall Morningstar rating: ★★★★ Fund description Performance over 5 years The fund seeks to provide a high and rising income as well as capital growth through a portfolio invested mainly in UK company shares. It may also invest 160 in high-quality, sterling-denominated bonds. The target yield (the fund’s 150 annual income distribution as a percentage of the share price) is 50% higher 150.4 than that of the FTSE All-Share Index, but this may vary in the short term. The 0 140 146.7 level of income provided may also fluctuate over time. The fund has a bias 0 136.7 1 130 towards the higher yielding sectors of the market, but it aims to have a broadly o t diversified portfolio within these yield constraints. d 120 e x Representative share class: ■Sterling Class A Accumulation shares e 110 d n Nominated share class: ■Sterling Class I Accumulation shares I 100 Fund Sector: ■IA UK Equity and Bond Income sector 90 0 Important 80 0 Jun 12 Jun 13 Jun 14 Jun 15 Jun 16 0 0 Past performance is not a guide to future performance. 1 K The value of investments and the income from them will fluctuate. This will cause Source of performance data: Morningstar, Inc., as at 30 June 2016 Sterling Class A U shares, net income reinvested, bid to bid basis. N E the fund price to fall as well as rise. There is no guarantee the fund objective will A be achieved and you may not get back the original amount you invested. The fund’s Sterling I Accumulation Class shares launched on 03/08/2012. P B The fund invests mainly in company shares and is therefore likely to experience Performance data shown prior to this date is that of the fund’s Sterling A Class shares. G D larger price fluctuations than funds that invest in bonds and/or cash. Y X Single year performance (5 years ending June) E 2 C K From 01.07.15 01.07.14 01.07.13 01.07.12 01.07.11 U 1 To 30.06.16 30.06.15 30.06.14 30.06.13 30.06.12 2 5 5 0 1 A Acc 3.1% 3.8% 12.3% 16.2% 5.0% 4 0 8 I Acc 3.6% 4.3% 12.8% 17.5% 5.0% 0 6 1 Sector 1.2% 5.5% 11.8% 18.8% -0.3% www.mandg.co.uk 11

M&G Index Tracker Fund Equities Fund manager: Richard O’Connor UK Launch date:27 February 1998 Overall Morningstar rating: ★★★ Fund description Performance over 5 years The fund is designed to track the performance of the FTSE All-Share Index, which represents a broad spread of UK company shares. The fund holds nearly 160 all of the companies in the index and matches closely the weight that each stock represents in the index. 150 Representative share class: ■Sterling Class A Accumulation shares 0 140 0 136.6 1 Fund Sector: ■IA UK All Companies sector 130 131.5 o t d 120 e Important x e 110 d Past performance is not a guide to future performance. n I 100 The value of investments and the income from them will fluctuate. This will cause the fund price to fall as well as rise. There is no guarantee the fund objective will 90 0 be achieved and you may not get back the original amount you invested. 80 0 Jun 12 Jun 13 Jun 14 Jun 15 Jun 16 0 The fund invests mainly in company shares and is therefore likely to experience 0 1 larger price fluctuations than funds that invest in bonds and/or cash. K Source of performance data: Morningstar, Inc., as at 30 June 2016 Sterling Class A U The fund is designed to track the FTSE All Share Index. shares, net income reinvested, bid to bid basis. N E The value of your investment will depend on the performance of FTSE All-Share A P Index and the success of the Fund tracking that index. Single year performance (5 years ending June) B G K A R From 01.07.15 01.07.14 01.07.13 01.07.12 01.07.11 T 2 To 30.06.16 30.06.15 30.06.14 30.06.13 30.06.12 C K U A Acc -0.8% 3.1% 12.3% 17.8% -2.8% 7 2 0 0 Sector -3.6% 7.4% 14.7% 23.6% -3.7% 3 1 4 0 8 0 6 1 M&G Recovery Fund Equities Fund manager: Tom Dobell UK Launch date:23 May 1969 Overall Morningstar rating: ★ Fund description Performance over 5 years The fund invests in companies that are out of favour with the stockmarket where the fund manager believes a good management team is making 160 concerted efforts to turn the business around. The fund’s sole aim is to achieve 150 capital growth. The fund manager takes a long-term view with a typical holding period of five years or more. Developing a constructive dialogue with company 0 140 management is a fundamental part of the investment process. 0 136.6 1 130 o t Representative share class: ■Sterling Class A Accumulation shares d 120 e Nominated share class: ■Sterling Class I Accumulation shares x e 110 d Fund Sector: ■IA UK All Companies sector n I 100 100.2 Important 90 96.7 0 Past performance is not a guide to future performance. 80 0 The value of investments and the income from them will fluctuate. This will cause Jun 12 Jun 13 Jun 14 Jun 15 Jun 16 0 0 the fund price to fall as well as rise. There is no guarantee the fund objective will 1 be achieved and you may not get back the original amount you invested. Source of performance data: Morningstar, Inc., as at 30 June 2016 Sterling Class A K U shares, net income reinvested, bid to bid basis. N The fund invests mainly in company shares and is therefore likely to experience E larger price fluctuations than funds that invest in bonds and/or cash. The fund’s Sterling I Accumulation Class shares launched on 15/01/2010. A Performance data shown prior to this date is that of the fund’s Sterling A Class shares. P B Currency exchange rate fluctuations will have an impact on the value of G your investment. C E Single year performance (5 years ending June) R 2 C K From 01.07.15 01.07.14 01.07.13 01.07.12 01.07.11 U 1 To 30.06.16 30.06.15 30.06.14 30.06.13 30.06.12 2 8 5 2 1 A Acc -11.5% -3.2% 7.4% 10.4% -4.8% 4 0 8 I Acc -10.8% -2.4% 8.2% 11.1% -4.2% 0 6 1 Sector -3.6% 7.4% 14.7% 23.6% -3.7% 12 www.mandg.co.uk

M&G Smaller Companies Fund Equities Fund manager:Garfield Kiff UK Launch date:27 September 1967 Overall Morningstar rating: ★★★ Fund description Performance over 5 years The fund invests in the shares of smaller UK companies, with the primary focus of achieving capital growth. It is a high-conviction portfolio of stocks where the 180 fund manager believes good management can have the most impact on company earnings. The fund manager selects stocks based on their individual 160 merits, focusing on company management, business growth opportunities and 0 150.1 valuation of the shares, favouring trustworthy, diligent and understated 0 140 143.3 1 140.1 management teams. o t d 120 Representative share class: ■Sterling Class A Accumulation shares e x e Nominated share class: ■Sterling Class I Accumulation shares d 100 n I Fund Sector: ■IA UK Smaller Companies sector 80 0 Important 60 0 Past performance is not a guide to future performance. Jun 12 Jun 13 Jun 14 Jun 15 Jun 16 0 0 The value of investments and the income from them will fluctuate. This will cause 1 K the fund price to fall as well as rise. There is no guarantee the fund objective will Source of performance data: Morningstar, Inc., as at 30 June 2016 Sterling Class A U shares, net income reinvested, bid to bid basis. N E be achieved and you may not get back the original amount you invested. A The fund’s Sterling I Accumulation Class shares launched on 03/08/2012. The fund invests mainly in company shares and is therefore likely to experience P Performance data shown prior to this date is that of the fund’s Sterling A Class shares. B larger price fluctuations than funds that invest in bonds and/or cash. G S Y C Single year performance (5 years ending June) S 2 C K From 01.07.15 01.07.14 01.07.13 01.07.12 01.07.11 U 2 To 30.06.16 30.06.15 30.06.14 30.06.13 30.06.12 4 6 5 0 1 A Acc -9.0% 10.2% 11.4% 31.6% -4.7% 4 0 8 I Acc -8.3% 11.0% 12.2% 31.6% -4.7% 0 6 1 Sector -5.2% 11.4% 24.4% 30.0% -4.1% M&G UK Select Fund Equities Fund manager:Mike Felton UK Launch date:17 December 1968 Overall Morningstar rating: ★★★ Fund description Performance over 5 years The fund invests principally in shares of UK-listed companies with the aim of achieving capital growth. A long-term view is taken, with the emphasis on 160 finding undervalued companies with attractive growth prospects. The fund 150 manager targets a total number of stock holdings of around 50. The relatively concentrated nature of the fund requires the manager to have strong 0 140 conviction in each and every holding. 0 136.6 1 130 o 129.1 t Representative share class: ■Sterling Class A Accumulation shares 125.6 d 120 e Nominated share class: ■Sterling Class I Accumulation shares x e 110 d Fund Sector: ■IA UK All Companies sector n I 100 Important 90 0 Past performance is not a guide to future performance. 80 0 0 Jun 12 Jun 13 Jun 14 Jun 15 Jun 16 0 The value of investments and the income from them will fluctuate. This will cause 1 the fund price to fall as well as rise. There is no guarantee the fund objective will K Source of performance data: Morningstar, Inc., as at 30 June 2016 Sterling Class A U be achieved and you may not get back the original amount you invested. N shares, net income reinvested, bid to bid basis. E The fund invests mainly in company shares and is therefore likely to experience A The fund’s Sterling I Accumulation Class shares launched on 03/08/2012. P larger price fluctuations than funds that invest in bonds and/or cash. B Performance data shown prior to this date is that of the fund’s Sterling A Class shares. G P M O Single year performance (5 years ending June) C 2 C K From 01.07.15 01.07.14 01.07.13 01.07.12 01.07.11 U 8 To 30.06.16 30.06.15 30.06.14 30.06.13 30.06.12 4 4 5 0 1 A Acc -10.5% 7.2% 13.4% 18.4% -2.5% 4 0 8 I Acc -9.8% 8.0% 14.2% 19.1% -2.5% 0 6 1 Sector -3.6% 7.4% 14.7% 23.6% -3.7% www.mandg.co.uk 13

M&G European Index Tracker Fund Equities Fund manager:Nigel Booth Europe Launch date:31 January 2000 Overall Morningstar rating: ★★★ Fund description Performance over 5 years The fund is designed to track the performance of the FTSE World Europe ex UK Index, which represents a broad spread of European company shares. It will 140 typically hold around 350 stocks, including the largest 100 stocks in the index, as well as a selection of the remaining smaller stocks to ensure that the fund’s 130 133.0 market capitalisation and industry weights are in line with the index weighting. 0 120 124.6 0 Representative share class: ■Sterling Class A Accumulation shares 1 o t 110 Fund Sector: ■IA Europe Excluding UK sector d e x 100 e Important d n I 90 Past performance is not a guide to future performance. The value of investments and the income from them will fluctuate. This will cause 80 0 the fund price to fall as well as rise. There is no guarantee the fund objective will 70 0 be achieved and you may not get back the original amount you invested. 0 Jun 12 Jun 13 Jun 14 Jun 15 Jun 16 0 1 Currency exchange fluctuations will have an impact on the value of K your investment. Source of performance data: Morningstar, Inc., as at 30 June 2016 Sterling Class A U shares, net income reinvested, bid to bid basis. N E The fund invests mainly in company shares and is therefore likely to experience A larger price fluctuations than funds that invest in bonds and/or cash. P B Single year performance (5 years ending June) G The fund is designed to track the FTSE World Europe Ex UK Index. K T The value of your investment will depend on the performance of FTSE World U From 01.07.15 01.07.14 01.07.13 01.07.12 01.07.11 E Europe ex. UK Index and the success of the Fund tracking that index. 2 To 30.06.16 30.06.15 30.06.14 30.06.13 30.06.12 C K U A Acc 2.4% 2.8% 16.0% 29.3% -21.1% 8 1 5 5 Sector 5.2% 4.6% 14.6% 31.6% -18.1% 0 1 4 0 8 0 6 1 M&G European Select Fund Equities Fund manager:Charles Anniss Europe Launch date:24 July 1972 Citywire: + Overall Morningstar rating: ★★ Fund description Performance over 5 years The fund seeks to generate capital growth over the long term (that is, five years or more) through a concentrated portfolio of between 35 and 45 holdings from 140 across Europe, excluding the UK. Stocks are selected based on their individual merits, with a focus on quality businesses where an element of change is 130 133.0 129.4 helping to drive their value. Crucially, the fund manager will purchase shares in 0 120 125.3 a company when short-term issues have provided a clear valuation opportunity, 0 1 with a view to holding those shares over the long term. o t 110 d Representative share class: ■Sterling Class A Accumulation shares e x 100 e Nominated share class: ■Sterling Class I Accumulation shares d n I 90 Fund Sector: ■IA Europe Excluding UK sector 80 0 Important 70 0 Past performance is not a guide to future performance. 0 Jun 12 Jun 13 Jun 14 Jun 15 Jun 16 0 1 The value of investments and the income from them will fluctuate. This will cause K Source of performance data: Morningstar, Inc., as at 30 June 2016 Sterling Class A U the fund price to fall as well as rise. There is no guarantee the fund objective will shares, net income reinvested, bid to bid basis. N E be achieved and you may not get back the original amount you invested. A Currency exchange fluctuations will have an impact on the value of The fund’s Sterling I Accumulation Class shares launched on 03/08/2012. P B your investment. Performance data shown prior to this date is that of the fund’s Sterling A Class shares. G O R The fund invests mainly in company shares and is therefore likely to experience U Single year performance (5 years ending June) E larger price fluctuations than funds that invest in bonds and/or cash. 2 C K From 01.07.15 01.07.14 01.07.13 01.07.12 01.07.11 U 2 To 30.06.16 30.06.15 30.06.14 30.06.13 30.06.12 1 5 5 0 1 A Acc 3.3% 4.4% 9.5% 29.5% -18.0% 4 0 8 I Acc 4.1% 5.2% 10.3% 30.7% -18.0% 0 6 1 Sector 5.2% 4.6% 14.6% 31.6% -18.1% 14 www.mandg.co.uk

M&G European Smaller Companies Fund Equities Fund manager:Michael Oliveros Europe Launch date:30 September 1996 Overall Morningstar rating: ★★★ Fund description Performance over 5 years The fund invests in shares of smaller European companies, with the aim of generating capital growth over the long-term (that is, five years or more). The 160 fund generally invests in 30 to 60 stocks, focusing primarily on companies that make up the bottom third of all publically listed firms in Europe, in terms of 148.9 their stockmarket value. Stocks are selected based on their individual merits, 140 147.9 0 144.0 with a focus on quality businesses where an element of change is helping to 0 1 drive their value. Crucially, the fund manager will purchase shares in a company o 120 t when short-term issues have provided a clear valuation opportunity, with a d e view to holding those shares over the long term. x e 100 d n Representative share class: ■Sterling Class A Accumulation shares I Nominated share class: ■Sterling Class I Accumulation shares 80 0 Fund Sector: ■IA European Smaller Companies sector 60 0 Jun 12 Jun 13 Jun 14 Jun 15 Jun 16 0 0 Important 1 K Past performance is not a guide to future performance. Source of performance data: Morningstar, Inc., as at 30 June 2016 Sterling Class A U shares, net income reinvested, bid to bid basis. N E The value of investments and the income from them will fluctuate. This will cause A the fund price to fall as well as rise. There is no guarantee the fund objective will The fund’s Sterling I Accumulation Class shares launched on 03/08/2012. P be achieved and you may not get back the original amount you invested. B Performance data shown prior to this date is that of the fund’s Sterling A Class shares. G C Currency exchange fluctuations will have an impact on the value of S U your investment. Single year performance (5 years ending June) E 2 The fund invests mainly in company shares and is therefore likely to experience C K larger price fluctuations than funds that invest in bonds and/or cash. From 01.07.15 01.07.14 01.07.13 01.07.12 01.07.11 U 5 To 30.06.16 30.06.15 30.06.14 30.06.13 30.06.12 1 5 5 0 1 A Acc 8.2% 1.8% 16.5% 31.7% -14.8% 4 0 8 I Acc 9.1% 2.6% 17.4% 32.2% -14.8% 0 6 1 Sector 9.1% 8.4% 18.8% 33.6% -15.1% M&G European Strategic Value Fund Equities Fund manager: Richard Halle Europe Launch date:1 February 2008 Citywire: A Overall Morningstar rating: ★★★★ Fund description Performance over 5 years The fund is invested principally in the shares of European (including UK) companies that are deemed to be undervalued, with the aim of delivering 140 income and capital growth over the long term (that is over five years or more). 135.4 The fund manager employs a ‘value strategy’, that is, investing in cheap, out- 130 129.7 of-favour companies whose share price, in his view, does not reflect the 0 120 124.6 underlying value of the business. Stocks are selected on the basis of their 0 1 individual merits, through a combination of value-focused screening and o t 110 qualitative assessment. The fund manager seeks to construct a diversified d e portfolio of 60 to 100 stocks, with a typical holding period of three to five years. x 100 e d n Representative share class: ■Sterling Class A Accumulation shares I 90 Nominated share class: ■Sterling Class I Accumulation shares 80 Fund Sector: ■IA Europe including UK sector 70 0 0 Jun 12 Jun 13 Jun 14 Jun 15 Jun 16 0 Important 0 1 Past performance is not a guide to future performance. K Source of performance data: Morningstar, Inc., as at 30 June 2016 Sterling Class A U shares, net income reinvested, bid to bid basis. N The value of investments and the income from them will fluctuate. This will cause E the fund price to fall as well as rise. There is no guarantee the fund objective will The fund’s Sterling I Accumulation Class shares launched on 01/02/2008. A P be achieved and you may not get back the original amount you invested. Performance data shown prior to this date is that of the fund’s Sterling A Class shares. B G L Currency exchange fluctuations will have an impact on the value of V S your investment. Single year performance (5 years ending June) E 2 The fund invests mainly in company shares and is therefore likely to experience C K larger price fluctuations than funds that invest in bonds and/or cash. From 01.07.15 01.07.14 01.07.13 01.07.12 01.07.11 U 6 To 30.06.16 30.06.15 30.06.14 30.06.13 30.06.12 0 5 5 0 1 A Acc 0.3% 2.1% 17.7% 27.1% -18.7% 4 0 8 I Acc 1.1% 2.9% 18.6% 28.1% -17.9% 0 6 1 Sector 3.7% 5.5% 14.4% 26.4% -12.8% www.mandg.co.uk 15

M&G Pan European Dividend Fund Equities Fund manager: Phil Cliff Europe Launch date:18 July 2008 Citywire: A Overall Morningstar rating: ★★★★ Fund description Performance over 5 years The fund aims to deliver a dividend yield (annual income distributed as a percentage of the share price) above that of the market average by investing 150 at least 70% of the fund in a range of European company shares. It also aims 140 to grow income distributions over the long term (that is, over five years or more) 135.8 and deliver capital growth. The fund invests in the shares of companies with 0 130 135.4 the potential to grow their dividends over the long term. It may invest across 0 131.2 1 120 a wide range sectors and company sizes. The fund manager selects stocks with o t different drivers of dividend growth to construct a fund that has the potential d 110 e to cope in a variety of market conditions. x e 100 d n Representative share class: ■Sterling Class A Accumulation shares I 90 Nominated share class: ■Sterling Class I Accumulation shares 80 0 Fund Sector: ■IA Europe including UK sector 70 0 0 Jun 12 Jun 13 Jun 14 Jun 15 Jun 16 0 Important 1 K Past performance is not a guide to future performance. Source of performance data: Morningstar, Inc., as at 30 June 2016 Sterling Class A U shares, net income reinvested, bid to bid basis. N E The value of investments and the income from them will fluctuate. This will cause A the fund price to fall as well as rise. There is no guarantee the fund objective will The fund’s Sterling I Accumulation Class shares launched on 03/08/2012. P B be achieved and you may not get back the original amount you invested. Performance data shown prior to this date is that of the fund’s Sterling A Class shares. G D Currency exchange fluctuations will have an impact on the value of N A your investment. Single year performance (5 years ending June) P 2 The fund invests mainly in company shares and is therefore likely to experience C K larger price fluctuations than funds that invest in bonds and/or cash. From 01.07.15 01.07.14 01.07.13 01.07.12 01.07.11 U 0 To 30.06.16 30.06.15 30.06.14 30.06.13 30.06.12 3 6 5 0 1 A Acc 0.7% 7.4% 9.2% 27.5% -12.9% 4 0 8 I Acc 1.4% 8.2% 10.1% 29.1% -12.9% 0 6 1 Sector 3.7% 5.5% 14.4% 26.4% -12.8% M&G Pan European Select Fund Equities Fund manager:John William Olsen Europe Launch date:29 September 1989 Overall Morningstar rating: ★★★★ Fund description Performance over 5 years The fund aims to deliver capital growth and income over the long term (that is, five years or more) through a concentrated portfolio of between 25 and 35 140 holdings from across Europe, including the UK. Stocks are selected based on 135.4 their individual merits, with a focus on quality businesses where an element of 130 133.4 change is helping to drive their value. Crucially, the fund manager will purchase 0 129.6 shares in a company when short-term issues have provided a clear valuation 0 120 1 opportunity, with a view to holding those shares over the long term. o t 110 d Representative share class: ■Sterling Class A Accumulation shares e x 100 e Nominated share class: ■Sterling Class I Accumulation shares d n I 90 Fund Sector: ■IA Europe including UK sector 80 0 Important 70 0 Past performance is not a guide to future performance. 0 Jun 12 Jun 13 Jun 14 Jun 15 Jun 16 0 1 The value of investments and the income from them will fluctuate. This will cause K the fund price to fall as well as rise. There is no guarantee the fund objective will Source of performance data: Morningstar, Inc., as at 30 June 2016 Sterling Class A U shares, net income reinvested, bid to bid basis. N E be achieved and you may not get back the original amount you invested. A Currency exchange fluctuations will have an impact on the value of The fund’s Sterling I Accumulation Class shares launched on 03/08/2012. P B your investment. Performance data shown prior to this date is that of the fund’s Sterling A Class shares. G F D The fund invests mainly in company shares and is therefore likely to experience U Single year performance (5 years ending June) E larger price fluctuations than funds that invest in bonds and/or cash. 2 C K From 01.07.15 01.07.14 01.07.13 01.07.12 01.07.11 U 9 To 30.06.16 30.06.15 30.06.14 30.06.13 30.06.12 0 5 5 0 1 A Acc 6.8% 3.8% 8.7% 24.7% -13.7% 4 0 8 I Acc 7.7% 4.5% 9.5% 25.4% -13.7% 0 6 1 Sector 3.7% 5.5% 14.4% 26.4% -12.8% 16 www.mandg.co.uk

M&G Fund of Investment Trust Shares Equities Fund manager: Richard O’Connor Global Launch date:10 May 1968 Overall Morningstar rating: ★★★ Fund description Performance over 5 years The fund is a diversified portfolio of around 60 investment companies offering access to the UK and overseas. The fund manager invests in those areas and 150 investment vehicles that he believes can deliver the most growth over five years or more. The selection of stocks is based on the investment philosophy and 140 141.8 objective of the underlying holdings and the ability of each manager to deliver 0 130 132.0 on them, as well as the valuation of the shares. 0 1 o Representative share class: ■Sterling Class A Accumulation shares t 120 d e Fund Sector: ■IA Global sector x 110 e d n Important I 100 Past performance is not a guide to future performance. 90 0 The value of investments and the income from them will fluctuate. This will cause 80 0 the fund price to fall as well as rise. There is no guarantee the fund objective will Jun 12 Jun 13 Jun 14 Jun 15 Jun 16 0 0 be achieved and you may not get back the original amount you invested. 1 Source of performance data: Morningstar, Inc., as at 30 June 2016 Sterling Class A K The fund invests mainly in company shares and is therefore likely to experience U shares, net income reinvested, bid to bid basis. N larger price fluctuations than funds that invest in bonds and/or cash. E A Currency exchange rate fluctuations will have an impact on the value of P your investment. Single year performance (5 years ending June) B G S T I From 01.07.15 01.07.14 01.07.13 01.07.12 01.07.11 F 2 To 30.06.16 30.06.15 30.06.14 30.06.13 30.06.12 C K U A Acc 0.0% 6.5% 12.0% 21.7% -9.0% 7 4 7 5 Sector 8.0% 9.3% 9.8% 22.9% -6.8% 2 1 4 0 8 0 6 1 M&G Global Basics Fund Equities Fund managers:Jamie Horvat & Randeep Somel Global Launch date:28 February 1973 Overall Morningstar rating: ★★ Fund description Performance over 5 years The fund aims to deliver capital growth over the long term (that is, over five years or more) by investing in sound, well-run companies which are considered 150 to be the beneficiaries of long-term shifts or trends in the global economy. The investment process is a blend of macroeconomic and company analysis 140 141.9 focused on identifying those shifts or trends and the selection of the stocks 0 130 best placed to benefit from them. The fund invests across different countries 0 1 and companies of varying sizes. A minimum of 70% of the fund is invested in o t 120 companies that operate in basic industries, such as agriculture and d e manufacturing, and also in companies that service these industries. x 110 e d 106.0 n 103.4 Representative share class: ■Sterling Class A Accumulation shares I 100 Nominated share class: ■Sterling Class I Accumulation shares 90 0 Fund Sector: ■IA Global sector 80 0 0 Jun 12 Jun 13 Jun 14 Jun 15 Jun 16 0 Important 1 K Past performance is not a guide to future performance. Source of performance data: Morningstar, Inc., as at 30 June 2016 Sterling Class A U shares, net income reinvested, bid to bid basis. N E The value of investments and the income from them will fluctuate. This will cause A the fund price to fall as well as rise. There is no guarantee the fund objective will The fund’s Sterling I Accumulation Class shares launched on 03/08/2012. P B be achieved and you may not get back the original amount you invested. Performance data shown prior to this date is that of the fund’s Sterling A Class shares. G T Currency exchange fluctuations will have an impact on the value of S U your investment. Single year performance (5 years ending June) A 2 The fund invests mainly in company shares and is therefore likely to experience C K larger price fluctuations than funds that invest in bonds and/or cash. From 01.07.15 01.07.14 01.07.13 01.07.12 01.07.11 U 2 To 30.06.16 30.06.15 30.06.14 30.06.13 30.06.12 4 4 5 0 1 A Acc 11.1% 0.2% -1.2% 9.8% -14.3% 4 0 8 I Acc 11.9% 0.9% -0.5% 10.0% -14.3% 0 6 1 Sector 8.0% 9.3% 9.8% 22.9% -6.8% www.mandg.co.uk 17

M&G Global Dividend Fund Equities Fund manager:Stuart Rhodes Global Launch date:18 July 2008 Overall Morningstar rating: ★★ F und description Performance over 5 years The fund aims to deliver a dividend yield (annual income distributed as a percentage of the share price) above that of the market average by investing 150 at least 70% of the fund in company shares from around the world. It also 144.7 aims to grow income distributions over the long term (that is, over five years or 140 141.8 more) and deliver capital growth. The fund invests in the shares of companies 0 139.4 with the potential to grow their dividends over the long term. It may invest 0 130 1 across a wide range of countries, sectors and company sizes. The fund manager o t 120 selects stocks with different drivers of dividend growth to construct a fund that d e has the potential to cope in a variety of market conditions. x 110 e d n Representative share class: ■Sterling Class A Accumulation shares I 100 Nominated share class: ■Sterling Class I Accumulation shares 90 0 Fund Sector: ■IA Global sector 80 0 0 Jun 12 Jun 13 Jun 14 Jun 15 Jun 16 0 Important 1 K Past performance is not a guide to future performance. Source of performance data: Morningstar, Inc., as at 30 June 2016 Sterling Class A U shares, net income reinvested, bid to bid basis. N E The value of investments and the income from them will fluctuate. This will cause A the fund price to fall as well as rise. There is no guarantee the fund objective will The fund’s Sterling I Accumulation Class shares launched on 18/07/2008. P B be achieved and you may not get back the original amount you invested. Performance data shown prior to this date is that of the fund’s N/A Class shares. G D Currency exchange fluctuations will have an impact on the value of O L your investment. Single year performance (5 years ending June) G 2 The fund invests mainly in company shares and is therefore likely to experience C K larger price fluctuations than funds that invest in bonds and/or cash. From 01.07.15 01.07.14 01.07.13 01.07.12 01.07.11 U 8 To 30.06.16 30.06.15 30.06.14 30.06.13 30.06.12 4 5 5 0 1 A Acc 6.3% 0.1% 7.1% 23.4% -0.9% 4 0 8 I Acc 7.1% 0.8% 7.9% 24.3% -0.2% 0 6 1 Sector 8.0% 9.3% 9.8% 22.9% -6.8% M&G Global Emerging Markets Fund Equities Fund manager:Matthew Vaight Global Launch date:5 February 2009 Overall Morningstar rating: ★★★ Fund description Performance over 5 years The fund aims to deliver income and capital growth over the long term (that is, over five years of more) by investing in shares of companies from across the 110 emerging markets, or companies that conduct the majority of their business activities in such countries. Investments are chosen based purely on a 105 company’s individual merits. The fund manager focuses on firms that are run 0 for the benefit of their shareholders and whose future profitability, in his 0 100 100.5 1 100.3 opinion, is not fully appreciated by other investors. He has a long-term o 96.6 t 95 investment horizon of three to five years and selects stocks with different drivers d e of profitability to construct a diversified portfolio that has the potential to cope x 90 e in a variety of market conditions. d n I 85 Representative share class: ■Sterling Class A Accumulation shares Nominated share class: ■Sterling Class I Accumulation shares 80 0 Fund Sector: ■IA Global Emerging Markets sector 75 0 0 Jun 12 Jun 13 Jun 14 Jun 15 Jun 16 0 1 Important K Source of performance data: Morningstar, Inc., as at 30 June 2016 Sterling Class A U Past performance is not a guide to future performance. N shares, net income reinvested, bid to bid basis. E A The value of investments and the income from them will fluctuate. This will cause The fund’s Sterling I Accumulation Class shares launched on 05/02/2009. P B the fund price to fall as well as rise. There is no guarantee the fund objective will Performance data shown prior to this date is that of the fund’s N/A Class shares. G be achieved and you may not get back the original amount you invested. S M E Currency exchange fluctuations will have an impact on the value of Single year performance (5 years ending June) G 2 your investment. C K The fund invests mainly in company shares and is therefore likely to experience From 01.07.15 01.07.14 01.07.13 01.07.12 01.07.11 U 5 larger price fluctuations than funds that invest in bonds and/or cash. To 30.06.16 30.06.15 30.06.14 30.06.13 30.06.12 3 5 5 0 1 A Acc 4.5% -8.6% 5.0% 10.3% -12.7% 4 0 8 I Acc 5.3% -8.0% 5.8% 11.1% -12.0% 0 6 1 Sector 5.7% 2.2% 2.3% 7.8% -13.9% 18 www.mandg.co.uk

M&G Global Leaders Fund Equities Fund manager: Aled Smith Global Launch date:31 May 1985 Overall Morningstar rating: ★★ Fund description Performance over 5 years The fund aims to deliver income and capital growth over the long term (that is, over five years or more) by investing in a wide range of company shares from 150 anywhere in the world. The fund manager selects companies undergoing positive change leading to improvements in return on capital, but where the 140 141.8 change is not yet reflected in the share price. Portfolio construction is based on 138.4 0 130 134.6 in-depth analysis of companies, and is not influenced by views on countries 0 1 and industries. o t 120 d Representative share class: ■Sterling Class A Accumulation shares e x 110 e Nominated share class: ■Sterling Class I Accumulation shares d n I 100 Fund Sector: ■IA Global sector 90 Important 80 0 Past performance is not a guide to future performance. Jun 12 Jun 13 Jun 14 Jun 15 Jun 16 0 0 0 The value of investments and the income from them will fluctuate. This will cause 1 the fund price to fall as well as rise. There is no guarantee the fund objective will Source of performance data: Morningstar, Inc., as at 30 June 2016 Sterling Class A K U shares, net income reinvested, bid to bid basis. N be achieved and you may not get back the original amount you invested. E Currency exchange fluctuations will have an impact on the value of The fund’s Sterling I Accumulation Class shares launched on 03/08/2012. A Performance data shown prior to this date is that of the fund’s Sterling A Class shares. P your investment. B G F The fund invests mainly in company shares and is therefore likely to experience I L Single year performance (5 years ending June) I larger price fluctuations than funds that invest in bonds and/or cash. 2 C K From 01.07.15 01.07.14 01.07.13 01.07.12 01.07.11 U 4 To 30.06.16 30.06.15 30.06.14 30.06.13 30.06.12 5 5 5 0 1 A Acc 6.6% 3.8% 4.9% 26.5% -8.3% 4 0 8 I Acc 7.4% 4.6% 5.7% 27.2% -8.3% 0 6 1 Sector 8.0% 9.3% 9.8% 22.9% -6.8% M&G Global Recovery Fund Equities Fund manager:David Williams Global Launch date:17 February 2012 Overall Morningstar rating: ★★★ Fund description Performance since launch The fund aims to deliver capital growth over the long term (that is, over five years or more) by investing at least 80% of the fund in a globally diversified 150 portfolio of company shares. The fund manager focuses on businesses that 145.5 have experienced difficulties, but where a good management team is making 140 144.3 a concerted effort to improve shareholder returns, and where he believes the 0 139.8 value of the business has been overlooked. Taking a long-term view and 0 130 1 developing a constructive dialogue with company management are o t 120 fundamental to the investment process. d e x 110 Representative share class: ■Sterling Class A Accumulation shares e d n Nominated share class: ■Sterling Class I Accumulation shares I 100 Fund Sector: ■IA Global Sector 90 0 Important 80 0 Jun 12 Jun 13 Jun 14 Jun 15 Jun 16 0 0 Past performance is not a guide to future performance. 1 Source of performance data: Morningstar, Inc., as at 30 June 2016 Sterling Class A K The value of investments and the income from them will fluctuate. This will cause U shares, net income reinvested, bid to bid basis. N the fund price to fall as well as rise. There is no guarantee the fund objective will E be achieved and you may not get back the original amount you invested. The fund’s Sterling I Accumulation Class shares launched on 17/02/2012. A P Currency exchange fluctuations will have an impact on the value of Performance data shown prior to this date is that of the fund’s N/A Class shares. B G your investment. F E S Single year performance (5 years ending June) I The fund invests mainly in company shares and is therefore likely to experience 2 larger price fluctuations than funds that invest in bonds and/or cash. C K From 01.07.15 01.07.14 01.07.13 01.07.12 01.07.11 U 3 To 30.06.16 30.06.15 30.06.14 30.06.13 30.06.12 0 6 5 0 1 A Acc 9.9% 7.3% 9.4% 19.0% N/A 4 0 8 I Acc 10.7% 8.1% 10.2% 19.8% N/A 0 6 1 Sector 8.0% 9.3% 9.8% 22.9% -6.8% www.mandg.co.uk 19

M&G Global Select Fund Equities Fund manager:John William Olsen Global Launch date:19 December 1967 Overall Morningstar rating: ★★★★ Fund description Performance over 5 years The fund aims to deliver capital growth and income over the long term (that is, five years or more) through a concentrated portfolio of between 30 and 40 150 holdings from across the globe. Stocks are selected based on their individual merits, with a focus on quality businesses where an element of change is 140 142.8 141.8 helping to drive their value. Crucially, the fund manager will purchase shares in 0 130 138.2 a company when short-term issues have provided a clear valuation opportunity, 0 1 with a view to holding those shares over the long term. o t 120 d Representative share class: ■Sterling Class A Accumulation shares e x 110 e Nominated share class: ■Sterling Class I Accumulation shares d n I 100 Fund Sector: ■IA Global sector 90 0 Important 80 0 Past performance is not a guide to future performance. Jun 12 Jun 13 Jun 14 Jun 15 Jun 16 0 0 1 The value of investments and the income from them will fluctuate. This will cause K the fund price to fall as well as rise. There is no guarantee the fund objective will Source of performance data: Morningstar, Inc., as at 30 June 2016 Sterling Class A U shares, net income reinvested, bid to bid basis. N E be achieved and you may not get back the original amount you invested. A The fund’s Sterling I Accumulation Class shares launched on 03/08/2012. Currency exchange fluctuations will have an impact on the value of P Performance data shown prior to this date is that of the fund’s Sterling A Class shares. B your investment. G G The fund invests mainly in company shares and is therefore likely to experience T N Single year performance (5 years ending June) I larger price fluctuations than funds that invest in bonds and/or cash. 2 C This fund holds a relatively small number of investments, and as a result, may K From 01.07.15 01.07.14 01.07.13 01.07.12 01.07.11 U experience larger price fluctuations than a fund which holds a larger number 5 of investments. To 30.06.16 30.06.15 30.06.14 30.06.13 30.06.12 5 9 5 2 1 A Acc 8.9% 10.5% 1.4% 26.7% -10.6% 4 0 8 I Acc 9.7% 11.3% 2.1% 28.1% -10.6% 0 6 1 Sector 8.0% 9.3% 9.8% 22.9% -6.8% M&G Managed Growth Fund Equities Fund manager: David Fishwick Global Launch date:28 October 1994 Overall Morningstar rating: ★ Fund description Performance over 5 years The fund aims to deliver capital growth over the long term (that is, over five years or more) by investing primarily in M&G’s funds, but also in appropriate 140 collectives where M&G does not have the expertise. Up to 20% of its portfolio can also be directly invested in company shares and cash. The fund may also 130 gain exposure to assets indirectly through derivatives. The fund manager will 0 126.7 use his judgement to decide on individual fund and stock weightings. Close 0 120 1 consultation with M&G’s fund managers and analyst team is a key part of the o t decision-making process. d 110 e x Representative share class: ■Sterling Class A Accumulation shares e 105.3 d 100 102.9 n Nominated share class: ■Sterling Class I Accumulation shares I Fund Sector: ■IA Flexible Investment sector 90 0 Important 80 0 Jun 12 Jun 13 Jun 14 Jun 15 Jun 16 0 0 Past performance is not a guide to future performance. 1 Source of performance data: Morningstar, Inc., as at 30 June 2016 Sterling Class A K The value of investments and the income from them will fluctuate. This will cause U shares, net income reinvested, bid to bid basis. N the fund price to fall as well as rise. There is no guarantee the fund objective will E be achieved and you may not get back the original amount you invested. The fund’s Sterling I Accumulation Class shares launched on 03/08/2012. A P Performance data shown prior to this date is that of the fund’s Sterling X Class shares. B Currency exchange fluctuations will have an impact on the value of G your investment. F G Single year performance (5 years ending June) M The fund invests mainly in company shares and is therefore likely to experience 2 larger price fluctuations than funds that invest in bonds and/or cash. C K From 01.07.15 01.07.14 01.07.13 01.07.12 01.07.11 U The fund will invest predominantly in other funds. 7 To 30.06.16 30.06.15 30.06.14 30.06.13 30.06.12 1 6 5 0 1 A Acc 4.4% 1.9% 4.2% 9.3% -15.0% 4 0 8 I Acc 4.8% 2.5% 4.8% 10.0% -15.0% 0 6 1 Sector 2.1% 7.1% 8.1% 15.8% -6.0% 20 www.mandg.co.uk

M&G North American Dividend Fund Equities Fund manager: John Weavers North America Launch date:28 April 2015* Overall Morningstar rating: ★★ Fund description Performance over 5 years The fund invests in the shares of North American companies with the potential to grow their dividends over the long term. Its aim is to grow distributions over 200 the long term (that is, over five years or more) and deliver capital growth. The level of income may vary over time. The fund manager selects stocks with 180 182.5 different drivers of dividend growth to construct a portfolio that has the 0 176.0 potential to cope in a variety of market conditions. 0 160 170.5 1 o t Representative share class: ■Sterling Class A Accumulation shares d 140 e Nominated share class: ■Sterling Class I Accumulation shares x e d 120 Fund Sector: ■IA North America sector n I Important 100 0 Past performance is not a guide to future performance. 80 0 0 The value of investments and the income from them will fluctuate. This will cause Jun 12 Jun 13 Jun 14 Jun 15 Jun 16 0 1 the fund price to fall as well as rise. There is no guarantee the fund objective will K Source of performance data: Morningstar, Inc., as at 30 June 2016 Sterling Class A U be achieved and you may not get back the original amount you invested. N shares, net income reinvested, bid to bid basis. E Currency exchange fluctuations will have an impact on the value of A your investment. The fund’s Sterling I Accumulation Class shares launched on 03/08/2012. P B Performance data shown prior to this date is that of the fund’s Sterling A Class shares. G The fund invests mainly in company shares and is therefore likely to experience R E larger price fluctuations than funds that invest in bonds and/or cash. M Single year performance (5 years ending June) A * The fund originally launched on 18 December 1972 (end of the initial offer 2 C period of the fund in the UK). On 28 April 2015, the fund’s name and objective K From 01.07.15 01.07.14 01.07.13 01.07.12 01.07.11 U changed and we are choosing to use this date as the launch date for this fund. 8 To 30.06.16 30.06.15 30.06.14 30.06.13 30.06.12 3 2 4 5 1 A Acc 14.0% 11.7% 6.7% 24.0% 1.3% 9 1 8 I Acc 14.9% 12.5% 7.5% 25.0% 1.3% 0 6 1 Sector 14.4% 15.3% 11.2% 25.5% 1.9% M&G North American Value Fund Equities Fund manager: Daniel White North America Launch date:1 July 2005 Overall Morningstar rating: ★★★ Fund description Performance over 5 years The fund invests in the shares of North American companies that are deemed to be undervalued, with the aim of delivering capital growth over the long term 200 (that is, over five years or more). The fund manager employs a ‘value strategy’ 190.2 that involves investing in cheap, out-of-favour companies whose share price, 184.2 in his view, does not reflect the underlying value of the business. Stocks are 0 182.4 selected on the basis of their individual merits, through a combination of value- 0 150 1 focused screening and qualitative assessment. The fund manager seeks to o t construct a diversified portfolio of 60-100 stocks and has a typical holding d e period of three to five years. x e d 100 n Representative share class: ■Sterling Class A Accumulation shares I Nominated share class: ■Sterling Class I Accumulation shares 0 Fund Sector: ■IA North America sector 50 0 Jun 12 Jun 13 Jun 14 Jun 15 Jun 16 0 0 Important 1 K Past performance is not a guide to future performance. Source of performance data: Morningstar, Inc., as at 30 June 2016 Sterling Class A U shares, net income reinvested, bid to bid basis. N E The value of investments and the income from them will fluctuate. This will cause A the fund price to fall as well as rise. There is no guarantee the fund objective will The fund’s Sterling I Accumulation Class shares launched on 03/08/2012. P be achieved and you may not get back the original amount you invested. B Performance data shown prior to this date is that of the fund’s Sterling A Class shares. G F Currency exchange fluctuations will have an impact on the value of V A your investment. Single year performance (5 years ending June) N 2 The fund invests mainly in company shares and is therefore likely to experience C K larger price fluctuations than funds that invest in bonds and/or cash. From 01.07.15 01.07.14 01.07.13 01.07.12 01.07.11 U 3 To 30.06.16 30.06.15 30.06.14 30.06.13 30.06.12 2 6 5 0 1 A Acc 14.3% 9.0% 15.7% 28.5% -0.7% 4 0 8 I Acc 15.2% 9.9% 16.6% 29.8% -0.7% 0 6 1 Sector 14.4% 15.3% 11.2% 25.5% 1.9% www.mandg.co.uk 21

M&G Asian Fund Equities Fund manager: Matthew Vaight Asia Launch date:14 September 1973 Overall Morningstar rating: ★★★ Fund description Performance over 5 years The fund aims to generate capital growth over the long term (that is, five years or more) by investing in the shares of companies throughout Asia (excluding 140 Japan) and Australasia, or companies that conduct the majority of their business activities in these countries. Investments are chosen based purely on 130 a company’s individual merits. The fund manager focuses on firms that are 0 120 run for the benefit of their shareholders and whose future profitability, in his 0 120.6 1 117.6 opinion, is not fully appreciated by other investors. He has a long-term o 113.5 t 110 investment horizon of three to five years and selects stocks with different drivers d e of profitability to construct a diversified portfolio that has the potential to cope x 100 e in a variety of market conditions. d n I 90 Representative share class: ■Sterling Class A Accumulation shares Nominated share class: ■Sterling Class I Accumulation shares 80 0 Fund Sector: ■IA Asia Pacific Excluding Japan sector 70 0 Jun 12 Jun 13 Jun 14 Jun 15 Jun 16 0 0 1 Important K Source of performance data: Morningstar, Inc., as at 30 June 2016 Sterling Class A U Past performance is not a guide to future performance. shares, net income reinvested, bid to bid basis. N E The value of investments and the income from them will fluctuate. This will cause The fund’s Sterling I Accumulation Class shares launched on 03/08/2012. A P the fund price to fall as well as rise. There is no guarantee the fund objective will Performance data shown prior to this date is that of the fund’s Sterling A Class shares. B G be achieved and you may not get back the original amount you invested. E R A Currency exchange fluctuations will have an impact on the value of Single year performance (5 years ending June) F 2 your investment. C K The fund invests mainly in company shares and is therefore likely to experience From 01.07.15 01.07.14 01.07.13 01.07.12 01.07.11 U 3 larger price fluctuations than funds that invest in bonds and/or cash. To 30.06.16 30.06.15 30.06.14 30.06.13 30.06.12 2 5 5 0 1 A Acc -2.2% 3.8% 7.6% 16.4% -10.6% 4 0 8 I Acc -1.5% 4.5% 8.4% 18.0% -10.6% 0 6 1 Sector 6.1% 9.6% 3.3% 14.5% -10.1% M&G Japan Fund Equities Fund manager:Johan Du Preez Japan Launch date:6 April 1971 Overall Morningstar rating: ★★★★ Fund description Performance over 5 years The fund aims to deliver capital growth over the long term (that is, over five years or more) by investing in a wide range of Japanese company shares. 180 Income is not a consideration when choosing investments. The fund manager selects shares in Japanese companies across a range of industries and 160 company sizes. He focuses on stocks where he believes the share price is not 0 153.6 fully valuing the company’s sustainable earnings over the medium to long 0 1 149.7 term. The portfolio typically holds between 30 and 50 stocks. o 140 148.5 t d Representative share class: ■Sterling Class A Accumulation shares e x e 120 Nominated share class: ■Sterling Class I Accumulation shares d n I Fund Sector: ■IA Japan sector 100 Important 80 0 Past performance is not a guide to future performance. Jun 12 Jun 13 Jun 14 Jun 15 Jun 16 0 0 0 The value of investments and the income from them will fluctuate. This will cause 1 the fund price to fall as well as rise. There is no guarantee the fund objective will Source of performance data: Morningstar, Inc., as at 30 June 2016 Sterling Class A K U shares, net income reinvested, bid to bid basis. N be achieved and you may not get back the original amount you invested. E The fund’s Sterling I Accumulation Class shares launched on 03/08/2012. Currency exchange fluctuations will have an impact on the value of A Performance data shown prior to this date is that of the fund’s Sterling A Class shares. P your investment. B G The fund invests mainly in company shares and is therefore likely to experience P A Single year performance (5 years ending June) J larger price fluctuations than funds that invest in bonds and/or cash. 2 C This fund holds a relatively small number of investments, and as a result, may K From 01.07.15 01.07.14 01.07.13 01.07.12 01.07.11 U experience larger price fluctuations than a fund which holds a larger number 8 of investments. To 30.06.16 30.06.15 30.06.14 30.06.13 30.06.12 5 9 5 2 1 A Acc -1.3% 22.0% 0.3% 28.4% -3.5% 4 0 8 I Acc -0.6% 22.9% 1.1% 28.8% -3.5% 0 6 1 Sector 8.4% 17.5% -1.2% 26.2% -4.1% 22 www.mandg.co.uk

M&G Japan Smaller Companies Fund Equities Fund manager:Johan Du Preez Japan Launch date:15 May 1984 Overall Morningstar rating: ★★★ Fund description Performance over 5 years The fund aims to deliver capital growth over the long term (that is, over five years or more) by investing at least 80% of the fund in the shares of smaller 250 Japanese companies (companies that make up the bottom third of all publicly listed companies in Japan, in terms of stockmarket value). Income is not a consideration when choosing investments. Stocks are selected from across a 0 200 210.3 wide range of industries. The fund manager focuses on stocks where he 0 203.2 1 203.2 believes the share price is not fully valuing the company’s sustainable earnings o t over the medium to long term. The portfolio typically holds between 30 and d 150 e 50 stocks. x e d n Representative share class: ■Sterling Class A Accumulation shares I 100 Nominated share class: ■Sterling Class I Accumulation shares Fund Sector: ■IA Japanese Smaller Companies sector 50 0 Jun 12 Jun 13 Jun 14 Jun 15 Jun 16 0 Important 0 0 1 Past performance is not a guide to future performance. Source of performance data: Morningstar, Inc., as at 30 June 2016 Sterling Class A K shares, net income reinvested, bid to bid basis. U The value of investments and the income from them will fluctuate. This will cause N E the fund price to fall as well as rise. There is no guarantee the fund objective will The fund’s Sterling I Accumulation Class shares launched on 03/08/2012. A be achieved and you may not get back the original amount you invested. Performance data shown prior to this date is that of the fund’s Sterling A Class shares. P B G Currency exchange fluctuations will have an impact on the value of C S your investment. Single year performance (5 years ending June) J 2 The fund invests mainly in company shares and is therefore likely to experience C K larger price fluctuations than funds that invest in bonds and/or cash. From 01.07.15 01.07.14 01.07.13 01.07.12 01.07.11 U 2 To 30.06.16 30.06.15 30.06.14 30.06.13 30.06.12 1 6 5 0 1 A Acc 11.9% 20.1% 9.2% 26.5% 9.4% 4 0 8 I Acc 12.8% 21.0% 10.1% 28.0% 9.4% 0 6 1 Sector 28.0% 18.1% 7.5% 30.8% 1.0% M&G Corporate Bond Fund Fixed income Fund manager: Richard Woolnough UK Launch date:15 April 1994 Overall Morningstar rating: ★★★★ Fund description Performance over 5 years The fund invests mainly in high quality corporate bonds, with the aim of delivering a higher income and capital growth than that available from 140 investment in UK government fixed income securities of similar maturities (the 138.4 length of time until the final repayment date). The fund manager may also 135.7 130 133.4 hold up to 20% of the portfolio in other fixed income investments. Exposure 0 to these assets is gained through physical holdings and the use of derivatives. 0 1 The fund manager is assisted by an in-house team of independent credit o 120 t analysts in the selection of individual bond issues. d e x Representative share class: ■Sterling Class A Accumulation shares e 110 d n Nominated share class: ■Sterling Class I Accumulation shares I Fund Sector: ■IA £ Corporate Bond sector 100 0 Important 90 0 Jun 12 Jun 13 Jun 14 Jun 15 Jun 16 0 0 Past performance is not a guide to future performance. 1 K The value of investments and the income from them will fluctuate. This will cause Source of performance data: Morningstar, Inc., as at 30 June 2016 Sterling Class A U shares, net income reinvested, bid to bid basis. N the fund price to fall as well as rise. There is no guarantee the fund objective will E be achieved and you may not get back the original amount you invested. The fund’s Sterling I Accumulation Class shares launched on 02/07/2007. A P Performance data shown prior to this date is that of the fund’s Sterling A Class shares. B The fund allows for the extensive use of derivatives. G R E T Single year performance (5 years ending June) S 2 C K From 01.07.15 01.07.14 01.07.13 01.07.12 01.07.11 U 6 To 30.06.16 30.06.15 30.06.14 30.06.13 30.06.12 0 3 0 9 0 A Acc 6.3% 4.1% 6.3% 5.0% 9.9% 5 0 8 I Acc 6.7% 4.6% 6.7% 5.4% 10.3% 0 6 1 Sector 6.3% 4.5% 6.9% 7.1% 6.8% www.mandg.co.uk 23

M&G Gilt & Fixed Interest Income Fund Fixed income Fund manager: Matthew Russell UK Launch date:9 December 1980 Overall Morningstar rating: ★★★ Fund description Performance over 5 years The fund aims to deliver income with stability of capital consistent with investment in gilts over rolling periods of three to five years. There is no 150 guarantee that the fund will achieve its objective over this, or any other, period. The level of income may vary over time. Up to 20% of the fund can be invested 140 139.9 in corporate bonds guaranteed by the government. Exposure to these assets 0 134.8 is gained through physical holdings and the use of derivatives. The fund invests 0 130 133.6 1 in UK government bonds (gilts) of all maturities, based on the manager’s view o t of the likely course of the UK economy and monetary policy. d 120 e x Representative share class: ■Sterling Class A Accumulation shares e d 110 n Nominated share class: ■Sterling Class I Accumulation shares I Fund Sector: ■IA UK Gilts sector 100 0 Important 90 0 Jun 12 Jun 13 Jun 14 Jun 15 Jun 16 0 0 Past performance is not a guide to future performance. 1 K The value of investments and the income from them will fluctuate. This will cause Source of performance data: Morningstar, Inc., as at 30 June 2016 Sterling Class A U shares, net income reinvested, bid to bid basis. N E the fund price to fall as well as rise. There is no guarantee the fund objective will be achieved and you may not get back the original amount you invested. A The fund’s Sterling I Accumulation Class shares launched on 03/08/2012. P Performance data shown prior to this date is that of the fund’s Sterling A Class shares. B The fund allows for the extensive use of derivatives. G D The fund manager invests at least 70% of the portfolio in securities issued by F I Single year performance (5 years ending June) G the UK government. 2 C K From 01.07.15 01.07.14 01.07.13 01.07.12 01.07.11 U 5 To 30.06.16 30.06.15 30.06.14 30.06.13 30.06.12 4 2 0 9 0 A Acc 11.9% 7.4% 1.0% -2.5% 12.8% 5 0 8 I Acc 12.1% 7.6% 1.2% -2.2% 12.8% 0 6 1 Sector 13.9% 8.7% 2.1% -3.4% 16.2% M&G Short Dated Corporate Bond Fund Fixed income Fund manager: Matthew Russell UK Launch date:29 January 1993 Overall Morningstar rating: ★ Fund description Performance over 5 years The fund invests in a range of typically low-risk debt instruments such as floating rate notes and short-dated corporate bonds with the aim of providing 135 income with stability of capital over a rolling three- to five-year period. There is 133.4 no guarantee that the fund will achieve its objective over this, or any other, 130 period. The level of income provided may vary over time. In-depth research is 0 125 at the heart of the investment process and exposure to these debt instruments 0 1 120 is gained through physical holdings and the use of derivatives. o t d 115 Representative share class: ■Sterling Class A Income shares e x e 110 Nominated share class: ■Sterling Class I Income shares d 109.5 n I 105 109.3 Fund Sector: ■IA £ Corporate Bond sector 100 0 Important 95 0 Past performance is not a guide to future performance. Jun 12 Jun 13 Jun 14 Jun 15 Jun 16 0 0 The value of investments and the income from them will fluctuate. This will cause 1 K the fund price to fall as well as rise. There is no guarantee the fund objective will Source of performance data: Morningstar, Inc., as at 30 June 2016 Sterling Class A U shares, net income reinvested, bid to bid basis. N be achieved and you may not get back the original amount you invested. E The fund’s Sterling I Income Class shares launched on 09/11/2012. Performance data A The fund allows for the extensive use of derivatives. P shown prior to this date is that of the fund’s Sterling A Class shares. B G F E R Single year performance (5 years ending June) T 2 C K From 01.07.15 01.07.14 01.07.13 01.07.12 01.07.11 U 9 To 30.06.16 30.06.15 30.06.14 30.06.13 30.06.12 0 3 0 9 0 A Inc 1.2% 0.9% 3.7% 2.5% 0.6% 5 0 8 I Inc 1.3% 1.0% 3.8% 2.5% 0.6% 0 6 1 Sector 6.3% 4.5% 6.9% 7.1% 6.8% 24 www.mandg.co.uk

M&G Strategic Corporate Bond Fund Fixed income Fund manager: Richard Woolnough UK Launch date:20 February 2004 Overall Morningstar rating: ★★★★ Fund description Performance over 5 years The fund aims to deliver income and capital growth by investing mainly in investment grade, or high quality, corporate bonds. The fund manager may 140 also hold up to 20% of the portfolio in other fixed income investments. 135.5 Exposure to these assets is gained through physical holdings and the use of 130 133.4 derivatives. The fund manager’s economic outlook will determine the 0 132.7 portfolio’s overall positioning, while an in-house team of independent credit 0 1 analysts assists in the selection of individual bond issues. o 120 t d Representative share class: ■Sterling Class A Accumulation shares e x e 110 Nominated share class: ■Sterling Class I Accumulation shares d n I Fund Sector: ■IA £ Corporate Bond sector 100 0 Important 90 0 Past performance is not a guide to future performance. Jun 12 Jun 13 Jun 14 Jun 15 Jun 16 0 0 1 The value of investments and the income from them will fluctuate. This will cause K the fund price to fall as well as rise. There is no guarantee the fund objective will Source of performance data: Morningstar, Inc., as at 30 June 2016 Sterling Class A U shares, net income reinvested, bid to bid basis. N E be achieved and you may not get back the original amount you invested. A The fund’s Sterling I Accumulation Class shares launched on 03/08/2012. The fund allows for the extensive use of derivatives. P B Performance data shown prior to this date is that of the fund’s Sterling A Class shares. G R O C Single year performance (5 years ending June) S 2 C K From 01.07.15 01.07.14 01.07.13 01.07.12 01.07.11 U 3 To 30.06.16 30.06.15 30.06.14 30.06.13 30.06.12 0 3 0 9 0 A Acc 4.4% 2.9% 7.1% 5.5% 9.4% 5 0 8 I Acc 4.8% 3.3% 7.5% 6.4% 9.4% 0 6 1 Sector 6.3% 4.5% 6.9% 7.1% 6.8% M&G UK Inflation Linked Corporate Bond Fund Fixed income Fund manager:Ben Lord UK Launch date:16 September 2010 Overall Morningstar rating: ★ Fund description Performance over 5 years The fund is designed to provide a level of protection from the effects of inflation by generating a total return (the combination of income and growth of capital) 130 consistent with or greater than the rate of UK inflation over a rolling three- to 125 128.0 five-year period. There is no guarantee that the fund will achieve its objective over this, or any other, period. The fund is mainly invested in inflation-linked 0 120 bonds issued by companies with a high credit quality. It may also hold a range 0 1 115 of other fixed interest assets that would be expected to perform well in an o t inflationary environment. Exposure to these assets is gained through physical d 110 e 109.0 holdings and the use of derivatives, which are financial instruments whose value x e 105 106.7 is linked to the expected future price movements of an underlying asset. d n I 100 Representative share class: ■Sterling Class A Accumulation shares Nominated share class: ■Sterling Class I Accumulation shares 95 0 Fund Sector: ■IA £ Strategic Bond sector 90 0 Jun 12 Jun 13 Jun 14 Jun 15 Jun 16 0 0 1 Important K Source of performance data: Morningstar, Inc., as at 30 June 2016 Sterling Class A U Past performance is not a guide to future performance. shares, net income reinvested, bid to bid basis. N E The value of investments and the income from them will fluctuate. This will cause The fund’s Sterling I Accumulation Class shares launched on 16/09/2010. A P the fund price to fall as well as rise. There is no guarantee the fund objective will Performance data shown prior to this date is that of the fund’s Sterling A Class shares. B G be achieved and you may not get back the original amount you invested. L I K The fund allows for the extensive use of derivatives. Single year performance (5 years ending June) U 2 The fund may invest more than 35% in securities issued by any one or more C K of the governments listed in the fund prospectus. Such exposure may be From 01.07.15 01.07.14 01.07.13 01.07.12 01.07.11 U 2 combined with the use of derivatives in pursuit of the fund objective. It is To 30.06.16 30.06.15 30.06.14 30.06.13 30.06.12 1 3 currently envisaged that the fund’s exposure to such securities may exceed 0 9 35% in the UK government, although this may vary subject only to those listed 0 A Acc -1.7% -1.4% 4.6% 5.5% -0.2% 5 in the prospectus. 0 8 I Acc -1.3% -1.0% 5.1% 5.9% 0.2% 0 In low or zero inflation conditions there is a risk that the fund’s expenses may 6 1 exceed the income earned. Should this occur any shortfall will be taken from Sector 2.7% 2.4% 8.1% 8.4% 4.2% the fund’s capital, there will be no income and the capital growth will be reduced. www.mandg.co.uk 25

M&G European Corporate Bond Fund Fixed income Fund manager: Stefan Isaacs Europe Launch date:13 January 2003 Overall Morningstar rating: ★★★ Fund description Performance over 5 years The fund aims to deliver income and capital growth by investing mainly in bonds issued by European companies with a high credit rating. The fund 120 manager can also invest part of the portfolio in other fixed income securities, 116.9 such as government bonds. Exposure to these assets is gained through direct 115 116.7 holdings and the use of derivatives. An in-house team of independent credit 0 114.6 analysts assists the fund manager in the selection of individual bond issues 0 110 1 and with the monitoring of names held by the fund. o t 105 d Representative share class: ■Sterling Class A Accumulation shares e x 100 e Nominated share class: ■Sterling Class I Accumulation shares d n I 95 Fund Sector: ■Morningstar EUR Corporate Bond sector 90 0 Important 85 0 Past performance is not a guide to future performance. Jun 12 Jun 13 Jun 14 Jun 15 Jun 16 0 0 1 The value of investments and the income from them will fluctuate. This will cause K the fund price to fall as well as rise. There is no guarantee the fund objective will Source of performance data: Morningstar, Inc., as at 30 June 2016 Sterling Class A U shares, net income reinvested, bid to bid basis. N E be achieved and you may not get back the original amount you invested. A The fund’s Sterling I Accumulation Class shares launched on 03/08/2012. Currency exchange fluctuations will have an impact on the value of P Performance data shown prior to this date is that of the fund’s Sterling A Class shares. B your investment. G F The fund allows for the extensive use of derivatives. B C Single year performance (5 years ending June) E 2 C K From 01.07.15 01.07.14 01.07.13 01.07.12 01.07.11 U 6 To 30.06.16 30.06.15 30.06.14 30.06.13 30.06.12 2 2 0 9 0 A Acc 20.2% -11.2% 0.9% 13.8% -6.6% 5 0 8 I Acc 20.7% -10.8% 1.3% 14.7% -6.6% 0 6 1 Sector 22.2% -9.9% 0.9% 13.9% -5.8% M&G European High Yield Bond Fund Fixed income Fund manager: James Tomlins Europe Launch date:15 October 1999 Overall Morningstar rating: ★★★ Fund description Performance over 5 years The fund aims to deliver capital growth and a high level of income, which may vary over time. The fund invests mainly in bonds issued by European companies 120 with a low credit rating, which typically pay higher levels of interest to 119.4 115 118.6 compensate investors for the greater risk of default. Part of the fund may be 117.5 invested in other fixed income assets, such as government bonds. Asset 0 110 exposure is gained through physical holdings and the use of derivatives. 0 1 105 o t Representative share class: ■Sterling Class A Accumulation shares d 100 e Nominated share class: ■Sterling Class I Accumulation shares x e 95 d Fund Sector: ■Morningstar Europe High Yield Bond sector n I 90 Important 85 0 Past performance is not a guide to future performance. 80 0 Jun 12 Jun 13 Jun 14 Jun 15 Jun 16 0 The value of investments and the income from them will fluctuate. This will cause 0 1 the fund price to fall as well as rise. There is no guarantee the fund objective will K be achieved and you may not get back the original amount you invested. Source of performance data: Morningstar, Inc., as at 30 June 2016 Sterling Class A U shares, net income reinvested, bid to bid basis. N E Currency exchange fluctuations will have an impact on the value of A The fund’s Sterling I Accumulation Class shares launched on 03/08/2012. your investment. P B Performance data shown prior to this date is that of the fund’s Sterling X Class shares. G The fund allows for the extensive use of derivatives. B Y H Single year performance (5 years ending June) E 2 C K From 01.07.15 01.07.14 01.07.13 01.07.12 01.07.11 U 2 To 30.06.16 30.06.15 30.06.14 30.06.13 30.06.12 3 2 0 9 0 A Acc 16.5% -12.7% 6.8% 20.6% -10.3% 5 0 8 I Acc 16.9% -12.4% 7.2% 20.4% -10.3% 0 6 1 Sector 17.4% -10.4% 5.3% 18.8% -8.4% 26 www.mandg.co.uk

M&G Emerging Markets Bond Fund Fixed income Fund manager:Claudia Calich Global Launch date:15 October 1999 Overall Morningstar rating: ★★★★ Fund description Performance over 5 years The fund aims to deliver income and capital growth by investing mainly in bonds issued by governments and companies in emerging markets. It can also 50 1 invest in emerging market currencies. Exposure to these assets is gained 145.5 through direct holdings and the use of derivatives. The portfolio’s positioning 140 142.9 is influenced by global and country-specific macroeconomic factors, followed 0 by in-depth analysis of individual bond issues. 0 130 1 o t Representative share class: ■Sterling Class A Accumulation shares d 120 e Nominated share class: ■Sterling Class I Accumulation shares x e d 110 112.8 Fund Sector: ■IA Global Emerging Markets Bond sector n I Important 100 0 Past performance is not a guide to future performance. 90 0 0 Jun 12 Jun 13 Jun 14 Jun 15 Jun 16 0 The value of investments and the income from them will fluctuate. This will cause 1 the fund price to fall as well as rise. There is no guarantee the fund objective will K Source of performance data: Morningstar, Inc., as at 30 June 2016 Sterling Class A U be achieved and you may not get back the original amount you invested. N shares, net income reinvested, bid to bid basis. E Currency exchange fluctuations will have an impact on the value of A The fund’s Sterling I Accumulation Class shares launched on 19/04/2012. P your investment. B Performance data shown prior to this date is that of the fund’s Sterling X Class shares. G The fund allows for the extensive use of derivatives. O B Funds which use currency management strategies may have substantially M Single year performance (5 years ending June) E altered exposures to currency exchange rates. Should these currencies not 2 C perform as the fund manager expects, the strategy may have a negative effect K From 01.07.15 01.07.14 01.07.13 01.07.12 01.07.11 U on performance. 5 To 30.06.16 30.06.15 30.06.14 30.06.13 30.06.12 3 2 0 9 0 A Acc 22.5% 6.1% -0.7% 5.5% 5.0% 5 0 8 I Acc 23.0% 6.5% -0.3% 5.7% 5.4% 0 6 1 Sector 14.4% -3.1% -2.5% 3.6% 2.4% M&G Global Corporate Bond Fund Fixed income Fund manager:Ben Lord Global Launch date:5 September 2013 Fund description Performance since launch The fund aims to deliver income and capital growth by investing at least 70% of the fund in investment grade (high quality) fixed income securities issued by 120 companies from anywhere in the world. Up to 20% of the fund may also be invested in other global fixed income investments. The fund holds these assets 117.5 directly and through derivatives. The fund manager’s overall economic outlook 0 115 0 114.0 will determine the portfolio’s overall positioning, while an in-house team of 1 112.8 independent credit analysts assists in the selection of individual bond issues. o 110 t d Representative share class: ■Sterling Class A-H Accumulation shares e x e 105 Nominated share class: ■Sterling Class I-H Accumulation shares d n I Fund Sector: ■IA £ Corporate Bond sector 100 0 Important 0 95 0 0 Past performance is not a guide to future performance. Dec 13 Jun 14 Dec 14 Jun 15 Dec 15 Jun 16 1 K The value of investments and the income from them will fluctuate. This will cause U the fund price to fall as well as rise. There is no guarantee the fund objective will Source of performance data: Morningstar, Inc., as at 30 June 2016 Sterling Class A- N E H shares, net income reinvested, bid to bid basis. H be achieved and you may not get back the original amount you invested. A Currency exchange fluctuations will have an impact on the value of The fund’s Sterling I-H Accumulation Class shares launched on 05/09/2013. P B your investment. Performance data shown prior to this date is that of the fund’s N/A Class shares. G D B The fund allows for the extensive use of derivatives. C Single year performance (5 years ending June) G 2 C K From 01.07.15 01.07.14 01.07.13 01.07.12 01.07.11 U 8 To 30.06.16 30.06.15 30.06.14 30.06.13 30.06.12 3 2 0 9 0 A-H Acc 4.2% -0.3% N/A N/A N/A 5 0 8 I-H Acc 4.6% 0.0% N/A N/A N/A 0 6 1 Sector 6.3% 4.5% 6.9% 7.1% 6.8% www.mandg.co.uk 27

M&G Global Floating Rate High Yield Fund Fixed income Fund manager: James Tomlins Global Launch date:11 September 2014 Fund description Performance since launch The fund aims to deliver income and capital growth by investing in floating rate notes (FRNs), which are bonds paying a variable coupon that is adjusted 110 in line with changes in interest rates. The fund focuses on FRNs issued by companies with a low credit rating, which typically pay higher levels of interest to compensate investors for the greater risk of default. Part of the fund may 0 be invested in other fixed income assets, such as government bonds. Asset 0 1 exposure is gained through physical holdings and the use of derivatives. o t 101.6 d 100 100.9 Representative share class: ■Sterling Class A-H Accumulation shares e 100.6 x e Nominated share class: ■Sterling Class I-H Accumulation shares d n I Fund Sector: ■IA £ High Yield sector 0 Important 90 0 0 Past performance is not a guide to future performance. Sep 14 Dec 14 Mar 15 Jun 15 Sep 15 Dec 15 Mar 16 Jun 16 0 1 The value of investments and the income from them will fluctuate. This will cause K U Source of performance data: Morningstar, Inc., as at 30 June 2016 Sterling Class A- the fund price to fall as well as rise. There is no guarantee the fund objective will N H shares, net income reinvested, bid to bid basis. E be achieved and you may not get back the original amount you invested. H A Currency exchange fluctuations will have an impact on the value of P Single year performance (5 years ending June) B your investment. G O L The fund allows for the extensive use of derivatives. F From 01.07.15 01.07.14 01.07.13 01.07.12 01.07.11 G The fund invests mainly in one type of asset. It is therefore more vulnerable to 2 To 30.06.16 30.06.15 30.06.14 30.06.13 30.06.12 C the market sentiment of that specific type of asset. This type of fund can carry K U a higher risk and can experience larger than average price fluctuations when A-H Acc 0.0% N/A N/A N/A N/A 5 compared to a fund with a broader investment universe. 0 6 3 I-H Acc 0.5% N/A N/A N/A N/A 3 1 9 Sector 0.7% -0.1% 11.0% 11.4% 0.9% 0 8 0 6 1 M&G Global Government Bond Fund Fixed income Fund manager: Claudia Calich Global Launch date:4 October 1999 Overall Morningstar rating: ★★★★ Fund description Performance over 5 years The fund aims to deliver income and capital growth through investing mainly in investment grade government bonds on a global basis. Exposure to these 135 assets is gained through direct holdings and the use of derivatives. The portfolio’s positioning is influenced by global and country-specific 130 130.9 macroeconomic factors, such as the rate of economic growth as well as 128.8 0 125 currency and interest rate movements. 0 1 120 o 119.5 t Representative share class: ■Sterling Class A Accumulation shares d 115 e Nominated share class: ■Sterling Class I Accumulation shares x e 110 d Fund Sector: ■IA Global Bonds sector n I 105 Important 100 0 Past performance is not a guide to future performance. 95 0 Jun 12 Jun 13 Jun 14 Jun 15 Jun 16 0 The value of investments and the income from them will fluctuate. This will cause 0 the fund price to fall as well as rise. There is no guarantee the fund objective will 1 K be achieved and you may not get back the original amount you invested. Source of performance data: Morningstar, Inc., as at 30 June 2016 Sterling Class A U shares, net income reinvested, bid to bid basis. N E Currency exchange fluctuations will have an impact on the value of The fund’s Sterling I Accumulation Class shares launched on 03/08/2012. A your investment. P Performance data shown prior to this date is that of the fund’s Sterling A Class shares. B G The fund allows for the extensive use of derivatives. V O The fund may invest more than 35% in securities issued by any one or more S Single year performance (5 years ending June) I of the governments listed in the fund prospectus. Such exposure may be 2 C combined with the use of derivatives in pursuit of the fund objective. It is K From 01.07.15 01.07.14 01.07.13 01.07.12 01.07.11 U currently envisaged that the fund’s exposure to such securities may exceed 0 35% in the governments of Germany, Japan, UK, USA although these may To 30.06.16 30.06.15 30.06.14 30.06.13 30.06.12 1 7 3 vary subject only to those listed in the prospectus. 3 1 A Acc 28.6% 3.2% -10.3% -1.1% 9.4% 9 0 8 I Acc 29.1% 3.6% -9.9% -0.6% 9.4% 0 6 1 Sector 14.7% -1.5% 0.6% 6.7% 2.2% 28 www.mandg.co.uk

M&G Global High Yield Bond Fund Fixed income Fund managers:Stefan Isaacs & James Tomlins Global Launch date:16 October 1998 Overall Morningstar rating: ★★★ Fund description Performance over 5 years The fund aims to deliver capital growth and a high level of income, which may vary over time. The fund invests principally in bonds issued by companies with 130 a low credit rating, which typically pay higher levels of interest to compensate 128.1 investors for the greater risk of default. Part of the fund may be invested in 125.0 120 124.2 other fixed income assets, such as government bonds. Asset exposure is gained 0 through physical holdings and the use of derivatives. 0 1 o 110 t Representative share class: ■Sterling Class A Accumulation shares d e Nominated share class: ■Sterling Class I Accumulation shares x e 100 d Fund Sector: ■IA £ High Yield sector n I 90 Important 0 Past performance is not a guide to future performance. 80 0 Jun 12 Jun 13 Jun 14 Jun 15 Jun 16 0 The value of investments and the income from them will fluctuate. This will cause 0 1 the fund price to fall as well as rise. There is no guarantee the fund objective will K be achieved and you may not get back the original amount you invested. Source of performance data: Morningstar, Inc., as at 30 June 2016 Sterling Class A U shares, net income reinvested, bid to bid basis. N E Currency exchange fluctuations will have an impact on the value of A The fund’s Sterling I Accumulation Class shares launched on 03/08/2012. your investment. P B Performance data shown prior to this date is that of the fund’s Sterling X Class shares. G The fund allows for the extensive use of derivatives. B C Y Single year performance (5 years ending June) H 2 C K From 01.07.15 01.07.14 01.07.13 01.07.12 01.07.11 U 1 To 30.06.16 30.06.15 30.06.14 30.06.13 30.06.12 5 2 0 9 0 A Acc 1.4% -1.0% 11.0% 10.6% 1.5% 5 0 8 I Acc 1.9% -0.5% 11.5% 11.7% 1.5% 0 6 1 Sector 0.7% -0.1% 11.0% 11.4% 0.9% M&G Global Macro Bond Fund Fixed income Fund manager: Jim Leaviss Global Launch date:15 October 1999 Overall Morningstar rating: ★★★★ Fund description Performance over 5 years This ‘go-anywhere’ fund aims to deliver income and capital growth over the long term (that is, over five years or more) by investing across a broad range 140 of fixed income assets, including bonds issued by governments and companies 135.9 in developed nations and emerging markets. Exposure to these assets is gained 130 132.6 through direct holdings and the use of derivatives. The ability to invest 0 anywhere and in any currency gives the fund the freedom to select those assets 0 1 that the fund manager believes are likely to benefit from the prevailing market o 120 t 119.6 trends and economic conditions. d e x Representative share class: ■Sterling Class A Accumulation shares e 110 d n Nominated share class: ■Sterling Class I Accumulation shares I Fund Sector: ■IA Global Bonds sector 100 0 90 0 Important 0 Jun 12 Jun 13 Jun 14 Jun 15 Jun 16 0 Past performance is not a guide to future performance. 1 K Source of performance data: Morningstar, Inc., as at 30 June 2016 Sterling Class A U The value of investments and the income from them will fluctuate. This will cause N shares, net income reinvested, bid to bid basis. E the fund price to fall as well as rise. There is no guarantee the fund objective will A be achieved and you may not get back the original amount you invested. The fund’s Sterling I Accumulation Class shares launched on 16/12/2011. P B Currency exchange fluctuations will have an impact on the value of Performance data shown prior to this date is that of the fund’s Sterling X Class shares. G F your investment. M L Single year performance (5 years ending June) G The fund allows for the extensive use of derivatives. 2 C The fund may invest more than 35% in securities issued by any one or more K From 01.07.15 01.07.14 01.07.13 01.07.12 01.07.11 U of the governments listed in the fund prospectus. Such exposure may be 7 combined with the use of derivatives in pursuit of the fund objective. It is To 30.06.16 30.06.15 30.06.14 30.06.13 30.06.12 0 7 3 currently envisaged that the fund’s exposure to such securities may exceed 3 1 35% in the governments of Germany, Japan, UK, USA although these may A Acc 19.6% 3.7% -6.5% 9.9% 4.1% 9 0 vary subject only to those listed in the prospectus. 8 I Acc 20.1% 4.2% -6.0% 10.4% 4.7% 0 6 1 Sector 14.7% -1.5% 0.6% 6.7% 2.2% www.mandg.co.uk 29

M&G Index-Linked Bond Fund Fixed income Fund manager:Ben Lord Global Launch date:4 October 1999 Overall Morningstar rating: ★★★★ Fund description Performance over 5 years The fund aims to protect the value of capital and income from the effects of rising prices over rolling periods of five years or longer, with a total return (the 170 combination of income and growth of capital) consistent with investment in 160 index-linked fixed income securities. There is no guarantee that the fund will 159.9 achieve its objective over this, or any other, period. The fund invests mainly in 0 150 159.6 0 157.2 inflation-linked bonds issued by the UK government. Up to 20% of the portfolio 1 140 may be invested in index-linked corporate bonds guaranteed by the o t government or foreign index-linked government bonds. Exposure to these d 130 e assets is gained through physical holdings and the use of derivatives. x e 120 d n Representative share class: ■Sterling Class A Accumulation shares I 110 Nominated share class: ■Sterling Class I Accumulation shares 100 Fund Sector: ■IA UK Index Linked Gilts sector 90 0 0 Jun 12 Jun 13 Jun 14 Jun 15 Jun 16 0 Important 0 1 K Past performance is not a guide to future performance. Source of performance data: Morningstar, Inc., as at 30 June 2016 Sterling Class A U shares, net income reinvested, bid to bid basis. N E The value of investments and the income from them will fluctuate. This will cause the fund price to fall as well as rise. There is no guarantee the fund objective will A The fund’s Sterling I Accumulation Class shares launched on 03/08/2012. P be achieved and you may not get back the original amount you invested. Performance data shown prior to this date is that of the fund’s Sterling A Class shares. B G F The fund allows for the extensive use of derivatives. G Y Single year performance (5 years ending June) R The fund may invest more than 35% in securities issued by any one or more 2 of the governments listed in the fund prospectus. Such exposure may be C K combined with the use of derivatives in pursuit of the fund objective. It is From 01.07.15 01.07.14 01.07.13 01.07.12 01.07.11 U 0 currently envisaged that the fund’s exposure to such securities may exceed To 30.06.16 30.06.15 30.06.14 30.06.13 30.06.12 0 3 35% in the UK government, although this may vary subject only to those listed 0 9 in the prospectus. 0 A Acc 14.8% 13.8% 3.0% 2.8% 15.3% 5 0 The fund invests mainly in one type of asset. It is therefore more vulnerable to 8 I Acc 14.9% 13.9% 3.1% 2.7% 15.3% 0 the market sentiment of that specific type of asset. This type of fund can carry 6 1 a higher risk and can experience larger than average price fluctuations when Sector 15.5% 13.6% 3.1% 3.1% 14.4% compared to a fund with a broader investment universe. M&G Optimal Income Fund Fixed income Fund manager: Richard Woolnough Global Launch date:8 December 2006 Overall Morningstar rating: ★★★★ Fund description Performance over 5 years The fund aims to deliver income and capital growth by investing in a broad range of fixed income securities, wherever the manager sees the greatest 140 opportunities. The manager may also hold up to 20% of the portfolio in company shares when he believes they offer better value than bonds. Exposure 130 132.9 to these assets is gained through physical holdings and the use of derivatives. 0 130.3 An in-house team of independent credit analysts assists the fund manager in 0 128.0 1 the selection of individual bond issues. o 120 t d Representative share class: ■Sterling Class A Accumulation shares e x e 110 Nominated share class: ■Sterling Class I Accumulation shares d n I Fund Sector: ■IA £ Strategic Bond sector 100 0 Important 90 0 Past performance is not a guide to future performance. Jun 12 Jun 13 Jun 14 Jun 15 Jun 16 0 0 The value of investments and the income from them will fluctuate. This will cause 1 K the fund price to fall as well as rise. There is no guarantee the fund objective will Source of performance data: Morningstar, Inc., as at 30 June 2016 Sterling Class A U shares, net income reinvested, bid to bid basis. N be achieved and you may not get back the original amount you invested. E The fund’s Sterling I Accumulation Class shares launched on 08/12/2006. A Currency exchange fluctuations will have an impact on the value of P Performance data shown prior to this date is that of the fund’s N/A Class shares. B your investment. G I T The fund allows for the extensive use of derivatives. P Single year performance (5 years ending June) O 2 C K From 01.07.15 01.07.14 01.07.13 01.07.12 01.07.11 U 7 To 30.06.16 30.06.15 30.06.14 30.06.13 30.06.12 5 2 0 9 0 A Acc 0.8% 0.5% 9.1% 9.6% 7.6% 5 0 8 I Acc 1.2% 0.9% 9.5% 10.0% 8.0% 0 6 1 Sector 2.7% 2.4% 8.1% 8.4% 4.2% 30 www.mandg.co.uk

M&G Episode Allocation Fund Multi Asset Fund managers:Juan Nevado & Tony Finding Global Launch date:16 February 2007 Overall Morningstar rating: ★★★ Defaqto Diamond Ratings: F und description Performance over 5 years The fund aims to deliver income and capital growth through investment in a diversified range of assets. Subject to this, the fund aims to grow income in the 140 long term (that is, over five years or more). The fund managers follow a highly flexible investment approach, with the freedom to invest in different types of 130 assets. The approach combines in-depth research to determine the value of 0 127.4 assets over the medium to long term, with analysis of investors’ emotional 0 124.9 1 124.8 reaction to events to identify investment opportunities. The fund gains access o 120 t to assets directly and indirectly through derivatives. d e x Representative share class: ■Sterling Class A Accumulation shares e 110 d n Nominated share class: ■Sterling Class I Accumulation shares I Fund Sector: ■IA Mixed Investment 20-60% Shares sector 100 0 90 0 Important 0 Jun 12 Jun 13 Jun 14 Jun 15 Jun 16 0 Past performance is not a guide to future performance. 1 K Source of performance data: Morningstar, Inc., as at 30 June 2016 Sterling Class A U The value of investments and the income from them will fluctuate. This will cause N shares, net income reinvested, bid to bid basis. E the fund price to fall as well as rise. There is no guarantee the fund objective will A be achieved and you may not get back the original amount you invested. The fund’s Sterling I Accumulation Class shares launched on 03/08/2012. P B Currency exchange fluctuations will have an impact on the value of Performance data shown prior to this date is that of the fund’s Sterling A Class shares. G F your investment. A M Single year performance (5 years ending June) C The fund allows for the extensive use of derivatives. 2 C K From 01.07.15 01.07.14 01.07.13 01.07.12 01.07.11 U 5 To 30.06.16 30.06.15 30.06.14 30.06.13 30.06.12 4 4 5 0 1 A Acc -3.1% 6.1% 9.7% 10.0% 0.5% 4 0 8 I Acc -2.5% 6.8% 10.3% 10.4% 0.5% 0 6 1 Sector 2.4% 5.3% 7.7% 12.0% -0.7% M&G Episode Defensive Fund Multi Asset Fund manager: Eric Lonergan Global Launch date:14 September 2012 Fund description Performance since launch The fund aims to deliver a positive total return (the combination of income and growth of capital) over rolling periods of three to five years, through an 108 investment approach that seeks to manage risk. There is no guarantee that the fund will achieve a positive return over this, or any other, period. The fund 106 has the flexibility to go long or short of any investable asset class globally. Asset 0 exposure is gained through physical holdings and the use of derivatives. The 0 104 1 approach combines in-depth research to determine the value of assets over o t the medium to long term, with analysis of investors’ emotional reaction to d 102 e events to identify investment opportunities. x e d 100 n Representative share class: ■Sterling Class A Accumulation shares I 98 98.5 Important 0 Past performance is not a guide to future performance. 96 0 Jun 13 Jun 14 Jun 15 Jun 16 0 The value of investments and the income from them will fluctuate. This will cause 0 1 the fund price to fall as well as rise. There is no guarantee the fund objective will K Source of performance data: Morningstar, Inc., as at 30 June 2016 Sterling Class A U be achieved and you may not get back the original amount you invested. shares, net income reinvested, bid to bid basis. N E Currency exchange fluctuations will have an impact on the value of A your investment. P Single year performance (5 years ending June) B G The fund allows for the extensive use of derivatives. E D P The fund may invest more than 35% in securities issued by any one or more From 01.07.15 01.07.14 01.07.13 01.07.12 01.07.11 E 2 of the governments listed in the fund prospectus. Such exposure may be To 30.06.16 30.06.15 30.06.14 30.06.13 30.06.12 C combined with the use of derivatives in pursuit of the fund objective. It is K U currently envisaged that the fund’s exposure to such securities may exceed A Acc -4.7% -0.6% 3.5% N/A N/A 4 0 35% in the governments of Germany, Italy, Japan, Switzerland, UK, USA 7 3 although these may vary subject only to those listed in the prospectus. 3 1 9 There may be times when the fund’s portfolio is more concentrated in specific 0 8 regions, strategies or sectors, which means the fund may be more exposed to 0 6 the market sentiment of those areas. 1 The fund may be very concentrated at times which could result in greater fluctuations in the fund’s short-term performance. www.mandg.co.uk 31

M&G Episode Growth Fund Multi Asset Fund managers: Eric Lonergan & Jenny Rodgers Global Launch date:26 February 1993 Overall Morningstar rating: ★★★ Defaqto Diamond Ratings: Fund description Performance over 5 years The fund aims to deliver income and capital growth through investment in a diversified range of assets. The fund managers follow a highly flexible 140 investment approach, with the freedom to invest in different types of assets. The approach combines in-depth research to determine the value of assets 130 130.8 over the medium to long term, with analysis of investors’ emotional reaction 0 to events to identify investment opportunities. The fund gains access to assets 0 120 122.8 1 119.2 directly and indirectly through derivatives. o t d 110 Representative share class: ■Sterling Class A Accumulation shares e x e Nominated share class: ■Sterling Class I Accumulation shares d 100 n I Fund Sector: ■IA Mixed Investment 40-85% Shares sector 90 0 Important 80 0 0 Past performance is not a guide to future performance. Jun 12 Jun 13 Jun 14 Jun 15 Jun 16 0 1 The value of investments and the income from them will fluctuate. This will cause K U Source of performance data: Morningstar, Inc., as at 30 June 2016 Sterling Class A the fund price to fall as well as rise. There is no guarantee the fund objective will N shares, net income reinvested, bid to bid basis. E be achieved and you may not get back the original amount you invested. A The fund’s Sterling I Accumulation Class shares launched on 03/08/2012. P Currency exchange fluctuations will have an impact on the value of B Performance data shown prior to this date is that of the fund’s Sterling A Class shares. G your investment. D F The fund allows for the extensive use of derivatives. N Single year performance (5 years ending June) M 2 C K From 01.07.15 01.07.14 01.07.13 01.07.12 01.07.11 U 0 To 30.06.16 30.06.15 30.06.14 30.06.13 30.06.12 2 6 5 0 1 A Acc -6.6% 5.8% 10.4% 14.1% -4.3% 4 0 8 I Acc -5.8% 6.8% 11.3% 14.6% -4.3% 0 6 1 Sector 2.5% 7.0% 8.8% 15.8% -3.4% M&G Episode Income Fund Multi Asset Fund manager:Steven Andrew Global Launch date:11 November 2010 Citywire: A Overall Morningstar rating: ★★★★ Defaqto Diamond Ratings: Fund description Performance over 5 years The fund seeks to provide a high and rising level of income through investment in a diversified range of assets. Subject to this, the fund aims to grow capital 150 over the long term (that is, time periods of five years or more). The fund invests in a range of income-generating assets from around the world, including 140 company shares and fixed income investments. Exposure to these assets is 0 137.2 gained through physical holdings and the use of derivatives. The holdings in 0 130 133.4 1 different asset classes will be adjusted regularly according to where the fund o t 124.9 manager sees the most value and to manage risks. d 120 e x Representative share class: ■Sterling Class A Accumulation shares e d 110 n Nominated share class: ■Sterling Class I Accumulation shares I Fund Sector: ■IA Mixed Investment 20-60% Shares sector 100 0 90 0 Important 0 Jun 12 Jun 13 Jun 14 Jun 15 Jun 16 0 Past performance is not a guide to future performance. 1 K Source of performance data: Morningstar, Inc., as at 30 June 2016 Sterling Class A U The value of investments and the income from them will fluctuate. This will cause N shares, net income reinvested, bid to bid basis. E the fund price to fall as well as rise. There is no guarantee the fund objective will A be achieved and you may not get back the original amount you invested. The fund’s Sterling I Accumulation Class shares launched on 03/08/2012. P B Currency exchange fluctuations will have an impact on the value of Performance data shown prior to this date is that of the fund’s Sterling A Class shares. G A your investment. M N Single year performance (5 years ending June) I The fund allows for the extensive use of derivatives. 2 C K From 01.07.15 01.07.14 01.07.13 01.07.12 01.07.11 U 1 To 30.06.16 30.06.15 30.06.14 30.06.13 30.06.12 0 0 4 3 1 A Acc -0.5% 5.9% 10.1% 9.3% 5.3% 9 0 8 I Acc 0.1% 6.5% 10.7% 10.5% 5.3% 0 6 1 Sector 2.4% 5.3% 7.7% 12.0% -0.7% 32 www.mandg.co.uk

M&G Episode Macro Fund Multi Asset Fund managers:David Fishwick & Eric Lonergan Global Launch date:3 June 2010 F und description Performance over 5 years The fund aims to deliver a higher total return (the combination of income and growth of capital) with smaller fluctuations in returns on average, than company 125 shares from around the world, over rolling periods of three to five years. The 120 fund managers follow a highly flexible investment approach, with the freedom to invest in different types of assets. The approach combines in-depth research 0 115 to determine the value of assets over the medium to long term, with analysis 0 1 112.1 110 of investors’ emotional reaction to events to identify investment opportunities. o t The fund gains access to assets directly and indirectly through derivatives. d 105 e x Representative share class: ■Sterling Class S-H Accumulation shares e 100 d n I 95 Important Past performance is not a guide to future performance. 90 0 0 85 0 The value of investments and the income from them will fluctuate. This will cause 0 Jun 12 Jun 13 Jun 14 Jun 15 Jun 16 1 the fund price to fall as well as rise. There is no guarantee the fund objective will K be achieved and you may not get back the original amount you invested. U Source of performance data: Morningstar, Inc., as at 30June2016Sterling Class S-H N Currency exchange fluctuations will have an impact on the value of E shares, net income reinvested, bid to bid basis. H your investment. S P B The fund allows for the extensive use of derivatives. Single year performance (5 years ending June) G P The fund may invest more than 35% in securities issued by any one or more E A of the governments listed in the fund prospectus. Such exposure may be From 01.07.15 01.07.14 01.07.13 01.07.12 01.07.11 M 2 combined with the use of derivatives in pursuit of the fund objective. It is To 30.06.16 30.06.15 30.06.14 30.06.13 30.06.12 C currently envisaged that the fund’s exposure to such securities may exceed K U 35% in the governments of Australia, Austria, Belgium, Canada, Denmark, S-H Acc -5.6% 11.6% 13.7% 3.3% -9.4% 3 1 Finland, France, Germany, Italy, Japan, Netherlands, New Zealand, Singapore, 7 3 Sweden, Switzerland, UK, USA although these may vary subject only to those 3 1 listed in the prospectus. 9 0 8 There may be times when the fund’s portfolio is more concentrated in specific 0 6 regions, strategies or sectors, which means the fund may be more exposed to 1 the market sentiment of those areas. The fund may use derivatives to generate exposure to investments exceeding the net asset value of the fund. This will expose the fund to a higher degree of risk and may cause your investment to experience larger than average price fluctuations. The fund may take short positions through the use of derivatives which are not backed by equivalent physical assets. Short positions reflect an investment view that the price of the underlying asset is expected to fall in value. Accordingly, if this view is incorrect and the asset rises in value, the short position will cause the fund to incur a loss. The fund may be very concentrated at times which could result in greater fluctuations in the fund’s short-term performance. www.mandg.co.uk 33

M&G Global Convertibles Fund Convertibles Fund manager: Léonard Vinville Global Launch date:13 July 2007 Overall Morningstar rating: ★★★★ Fund description Performance over 5 years The fund aims to deliver income and capital growth over the long term (that is, over five years or more) by investing in a diversified portfolio of convertible 140 bonds. These are a form of debt issued by companies that can be converted 134.5 into shares, either of the issuer or another company. When selecting convertible 130 131.0 bonds, the fund manager looks to participate in the rise of share prices whilst 0 130.5 also benefiting from the unique ability of convertibles to provide a degree of 0 120 1 protection against share price falls. The fund manager may use derivatives for o t investment purposes. d 110 e x Representative share class: ■Sterling Class A Accumulation shares e d 100 n Nominated share class: ■Sterling Class I Accumulation shares I Fund Sector: ■Morningstar Convertible Bond - Global sector 90 0 80 0 Important 0 Jun 12 Jun 13 Jun 14 Jun 15 Jun 16 0 1 Past performance is not a guide to future performance. K Source of performance data: Morningstar, Inc., as at 30 June 2016 Sterling Class A U The value of investments and the income from them will fluctuate. This will cause N shares, net income reinvested, bid to bid basis. E the fund price to fall as well as rise. There is no guarantee the fund objective will A be achieved and you may not get back the original amount you invested. The fund’s Sterling I Accumulation Class shares launched on 13/07/2007. P B Performance data shown prior to this date is that of the fund’s N/A Class shares. G Currency exchange fluctuations will have an impact on the value of N your investment. O C Single year performance (5 years ending June) G The fund allows for the extensive use of derivatives. 2 C K From 01.07.15 01.07.14 01.07.13 01.07.12 01.07.11 U 2 To 30.06.16 30.06.15 30.06.14 30.06.13 30.06.12 3 5 5 0 1 A Acc 13.9% 4.0% 2.7% 15.7% -7.3% 4 0 8 I Acc 14.5% 4.6% 3.3% 16.4% -6.7% 0 6 1 Sector 13.8% 3.5% 2.0% 15.4% -6.7% 34 www.mandg.co.uk

M&G Property Portfolio Property Fund manager:Fiona Rowley UK Launch date:18 January 2013* Fund description Performance over 5 years The fund aims to deliver income and capital growth over the long term (that is, over five years or more) by investing at least 70% of the fund in UK 150 commercial property. The fund invests in different types of commercial property, wholly or mainly in the UK. The fund manager selects attractively 140 priced properties from across a range of sectors and regions, seeking to add 0 0 130 value by actively managing and developing each property to enhance its 1 130.5 o 126.3 capital and rental income. t d 120 Representative share class: ■Sterling Class A Accumulation shares e x e Nominated share class: ■Sterling Class I Accumulation shares d 110 n I Fund Peer Group: ■IA Property sector 100 0 Important 90 0 Past performance is not a guide to future performance. Jun 12 Jun 13 Jun 14 Jun 15 Jun 16 0 0 1 The value of investments and the income from them will fluctuate. This will cause K the fund price to fall as well as rise. There is no guarantee the fund objective will Source of performance data: Morningstar, Inc., as at 30 June 2016, Sterling Class A U shares, net income reinvested, bid to bid basis. N E be achieved and you may not get back the original amount you invested. The fund’s Sterling I Accumulation Class shares launched on 18/01/2013. A Currency exchange fluctuations will have an impact on the value of P Performance data shown prior to this date is that of the fund’s APUT GBP S Class B your investment. G shares. P P * Please note: The M&G Property Portfolio converted to a PAIF OEIC on U A 18 January 2013. Performance data for the period before this is calculated Single year performance (5 years ending June) 2 using the returns of the M&G Property Portfolio, the old unit trust. C K U Property investments can be harder to buy and sell when compared to From 01.07.15 01.07.14 01.07.13 01.07.12 01.07.11 7 investments in fixed income securities and shares. 5 3 To 30.06.16 30.06.15 30.06.14 30.06.13 30.06.12 5 There is no guarantee that investments in property will increase in value or 2 1 4 that rental growth will take place. This could have an adverse effect on the A Acc -1.1% 11.1% 10.8% 1.5% 2.2% 0 8 value of your investment. 0 I Acc -0.5% 11.8% 11.4% 2.5% 2.6% 6 1 The fund can invest in international property which means that it will be impacted by currency exchange rate fluctuations. Peer group The fund invests mainly in one type of asset. It is therefore more vulnerable to average -1.3% 11.3% 12.4% 2.8% 0.5% the market sentiment of that specific type of asset. This type of fund can carry a higher risk and can experience larger than average price fluctuations when compared to a fund with a broader investment universe. Each day we value the assets of the M&G Property Portfolio on both an ‘offer’ basis (how much they would cost to buy) and a ‘bid’ basis (how much the fund would receive if they were sold). The difference between the two, known as the ‘spread’, is currently around 6.25%. This reflects the costs of buying and selling properties, in particular Stamp Duty Land Tax paid on purchases which can account for up to 5% of the property value. The dealing prices we publish are on either the offer basis or bid basis, depending on whether people are generally buying fund shares (the fund is in ‘net inflow’) or selling shares (the fund is in ‘net outflow’). Should fund flows move from net inflow to net outflow, the dealing prices may ‘swing’ from an offer basis to a bid basis and fall by the extent of the spread. On the other hand, should flows move from net outflow to net inflow, the dealing prices may rise by the same extent. For large deals (regarded as deals in excess of £50,000) the dealing price you receive may be different from the published price. If you are buying shares, you may receive a price that is higher than the quoted offer price. If you are selling shares, you may receive a price that is lower than the quoted bid price. www.mandg.co.uk 35

Glossary Asset: Anything having commercial or exchange value that is owned by a business, institution or individual. Asset class:Category of assets, such as cash, company shares, fixed income securities and their sub-categories, as well as tangible assets such as real estate. Bond:A loan in the form of a security, usually issued by a government or company, which normally pays a fixed rate of interest over a given time period, at the end of which the initial amount borrowed is repaid. Capital: Refers to the financial assets, or resources, that a company has to fund its business operations. Capitalisation: The total market value of all of a company’s outstanding shares. Comparative sector: A group of funds with similar investment objectives and/or types of investment, as classified by bodies such as the Investment Association (IA) or Morningstar™. Sector definitions are mostly based on the main assets a fund should invest in, and may also have a geographic focus. Sectors can be the basis for comparing the different characteristics of similar funds, such as their performance or charging structure. Convertible bonds: Fixed income securities that can be exchanged for predetermined amounts of company shares at certain times during their life. Corporate bonds:Fixed income securities issued by a company. They are also known as bonds and can offer higher interest payments than bonds issued by governments as they are often considered more risky. Credit:The borrowing capacity of an individual, company or government. More narrowly, the term is often used as a synonym for fixed income securities issued by companies. Credit rating:An independent assessment of a borrower’s ability to repay its debts. A high rating indicates that the credit rating agency considers the issuer to be at low risk of default; likewise, a low rating indicates high risk of default. Standard & Poor’s, Fitch and Moody’s are the three most prominent credit rating agencies. Default means that a company or government is unable to meet interest payments or repay the initial investment amount at the end of security’s life. Credit spread:The difference between the yield of a corporate bond, a fixed income security issued by a company, and a government bond of the same life span. Yield refers to the income received from an investment and is expressed as a percentage of the investment’s current market value, and a bond is a fixed income security. Curve of economic development: A concept used to represent the changing needs of an economy at different stages in its development, ranging from food and basic infrastructure early on to more advanced requirements such as consumer products, travel and branded goods desired by increasingly sophisticated consumers in more advanced economies. Default:When a borrower does not maintain interest payments or repay the amount borrowed when due. Derivatives:Financial instruments whose value, and price, are dependent on one or more underlying assets. Derivatives can be used to gain exposure to, or to help protect against, expected changes in the value of the underlying investments. Derivatives may be traded on a regulated exchange or traded over the counter. Developed economies or markets:Well-established economies with a high degree of industrialisation, standard of living and security. Dividend:Dividends represent a share in the profits of the company and are paid out to a company’s shareholders at set times of the year. Duration: A measure of the sensitivity of a fixed income security, also called a bond, or bond fund to changes in interest rates. The longer a bond or bond fund’s duration, the more sensitive it is to interest rate movements. Emerging economies or markets:Economies in the process of rapid growth and increasing industrialisation. Investments in emerging markets are generally considered to be riskier than those in developed markets. Episode: A phase during which investors allow their emotions to affect their decision making, which can cause financial markets to move irrationally. Equities: Shares of ownership in a company. Ex-dividend date: The date on which declared distributions officially belong to underlying investors, rather than the fund, usually the first business day of the month. Exposure: The proportion of a fund invested in a particular share/fixed income security, sector/region, usually expressed as a percentage of the overall portfolio. Fixed income security: A loan in the form of a security, usually issued by a government or company, which normally pays a fixed rate of interest over a given time period, at the end of which the initial amount borrowed is repaid. Flexible ISA:An ISA which allows you to withdraw and reinvest funds in the same tax year, without this reinvestment counting towards your annual ISA allowance. Floating rate notes (FRNs): Securities whose interest (income) payments are periodically adjusted depending on the change in a reference interest rate. Gilts: Fixed income securities issued by the UK government. Government bonds:Fixed income securities issued by governments, that normally pay a fixed rate of interest over a given time period, at the end of which the initial investment is repaid. Hedging:A method of reducing unnecessary or unintended risk. 36 www.mandg.co.uk

High water mark (HWM): The highest level that a fund’s NAV (net asset value) has reached at the end of any 12-month accounting period. High yield bonds: Fixed income securities issued by companies with a low credit rating from a recognised credit rating agency. They are considered to be at higher risk of default than better quality, ie higher-rated fixed income securities but have the potential for higher rewards. Default means that a company or government is unable to meet interest payments or repay the initial investment amount at the end of security’s life. Income yield: Refers to the income received from an investment and is usually expressed annually as a percentage based on the investment’s cost, its current market value or face value. Index:An index represents a particular market or a portion of it, serving as a performance indicator for that market. Index-linked bonds:Fixed income securities where both the value of the loan and the interest payments are adjusted in line with inflation over the life of the security. Also referred to as inflation-linked bonds. Inflation: The rate of increase in the cost of living. Inflation is usually quoted as an annual percentage, comparing the average price this month with the same month a year earlier. Investment Association (IA): The UK trade body that represents fund managers. It works with investment managers, liaising with government on matters of taxation and regulation, and also aims to help investors understand the industry and the investment options available to them. Investment grade bonds:Fixed income securities issued by a company with a medium or high credit rating from a recognised credit rating agency. They are considered to be at lower risk from default than those issued by companies with lower credit ratings. Default means that a company or government is unable to meet interest payments or repay the initial investment amount at the end of a security’s life. Issuer: An entity that sells securities, such as fixed income securities and company shares. Leverage: When referring to a company, leverage is the level of a company’s debt in relation to its assets. A company with significantly more debt than capital is considered to be leveraged. It can also refer to a fund that borrows money or uses derivatives to magnify an investment position. Long position:Refers to ownership of a security held in the expectation that the security will rise in value. Macroeconomic:Refers to the performance and behaviour of an economy at the regional or national level. Macroeconomic factors such as economic output, unemployment, inflation and investment are key indicators of economic performance. Sometimes abbreviated to ‘macro’. Maturity:The length of time until the initial investment amount of a fixed income security is due to be repaid to the holder of the security. Monetary policy:A central bank’s regulation of money in circulation and interest rates. Near cash:Deposits or investments with similar characteristics to cash. Net: The proportion of a fund invested in, for example, different sectors. Derivatives are included. The latter are financial instruments whose value, and price, are dependent on one or more underlying assets. Net asset value (NAV):A fund’s net asset value is calculated by taking the current value of the fund’s assets and subtracting its liabilities. Open-Ended Investment Company (OEIC):A type of managed fund, whose value is directly linked to the value of the fund’s underlying investments. Options:Financial contracts that offer the right, but not the obligation, to buy or sell an asset at a given price on or before a given date in the future. Overweight:If a fund is ‘overweight’ a stock, it holds a larger proportion of that stock than the comparable index or sector. Payment date:The date on which distributions will be paid by the fund to investors, usually the last business day of the month. Physical: The fund’s exposure excluding derivatives, which are financial instruments whose value, and price, is dependent on one or more underlying securities. Retail Prices Index (RPI):A UK inflation index that measures the rate of change of prices for a basket of goods and services in the UK, including mortgage payments and council tax. Share class:Each M&G fund has different share classes, such as A, I and R. Each has a different level of charges and minimum investment. Details on charges and minimum investments can be found in the Key Investor Information Documents. Short position: A way for a fund manager to express his or her view that the market might fall in value. Short-dated corporate bonds:Fixed income securities issued by companies and repaid over relatively short periods. Short-dated government bonds:Fixed income securities issued by governments and repaid over relatively short periods. Total return:The term for the gain or loss derived from an investment over a particular period. Total return includes income (in the form of interest or dividend payments) and capital gains. Unit trust: A type of managed fund, whose value is directly linked to the value of the fund’s underlying investments. Valuation: The worth of an asset or company based on its current price. Volatility:The degree to which a given security, fund, or index rapidly changes. It is calculated as the degree of deviation from the norm for that type of investment over a given time period. The higher the volatility, the riskier the security tends to be. Yield (equity):Refers to the dividends received by a holder of company shares and is usually expressed annually as a percentage based on the investment’s cost, its current market value or face value. Dividends represent a share in the profits of the company and are paid out to a company’s shareholders at set times of the year. www.mandg.co.uk 37

38 www.mandg.co.uk

How to invest with M&G Before investing, please make sure you have read the Prospectus and Key Investor Information Documents (KIIDs) for the fund(s) in which you wish to invest. There you will find more information about the investment, including details about the fund’s different share classes: be sure to choose the appropriate one for you. The KIIDs also explain fund charges, including the ongoing charge, a deduction from your fund which M&G makes to cover the costs of investment management and administration. You should also read the Important Information for Investors document, which includes M&G’s Terms and Conditions. The relevant KIID(s) and Important Information for Investors document can be downloaded from www.mandg.co.uk/kiids or requested by calling our Customer Relations team on 0800 390 390. Then, once you have read the relevant documents: To invest by phone Call our Investment Helplineon 0800 389 8600to invest right now. Please remember to have your debit card* ready when you call. Existing customers will require their M&G client reference. Failure to provide this will affect your ability to transact with us. For your protection calls may be recorded. To invest by post Please complete the appropriate application form – which can be downloaded from www.mandg.co.uk/literatureor requested by calling our Customer Relations team on the number above – and return it to us, with your cheque if applicable. *We accept Maestro, Switch, MasterCard Debit, Solo, Visa Debit and Visa Delta. www.mandg.co.uk 39

If you have a financial adviser, please contact them for further information on M&G’s funds and products, and also for information on how to invest with M&G. If you invest directly with M&G and do not have a financial adviser, you can contact us using the details below. How to contact us Learning Zone Call us* Educational guides to help you on your Customer Relations investment journey: 0800 390 390 www.mandg.co.uk/learningzone If you have a query regarding your M&G investment, our Customer Relations team can be contacted from 8.00am to 6.00pm, Monday to Friday, and from 9.00am to * For security purposes and to improve the quality of our service, 1.00pm on Saturday. we may record and monitor telephone calls. **Please note that information contained within an email cannot Investment Helpline be guaranteed as secure. We advise that you do not include any 0800 389 8600 sensitive information when corresponding with M&G in this way. If you would like to make an investment, If you would like to request a copy of the Important Information request further information on a new or for Investors document, a Key Investor Information Document (KIID) or the Prospectus, free of charge and in English, please call additional investment, or want to read Customer Relationsfree on 0800 390 390. more about our products and services, call We are unable to give you financial advice. If you are unsure our investment Helpline from 8.00am to about the suitability of your investment, please speak to your 6.00pm, Monday to Friday, and from financial adviser. 9.00am to 1.00pm on Saturday. The value of investments and the income from them will fluctuate. Minicom textphone This will cause the fund price to fall as well as rise. There is no guarantee the fund objective will be achieved and you may not get 0800 917 2295 back the original amount you invested. If you have hearing difficulties, you can contact us on minicom from 9.00am to 5.00pm, Monday to Friday. Source of all performance figures: Morningstar, Inc., bid to bid, net income reinvested as at 30.06.16. All ratings Email us** as at 31.05.16. Copyright © 2016 Morningstar UK Limited. All Rights Reserved. Ratings should not be [email protected] taken as recommendation. Defaqto is an independent For information. financial researcher. Write to us: As part of our customer care programme you may receive a call M&G Customer Relations from us following receipt of this literature to see how we can be of PO Box 9039 any further assistance. If you would like a free up-to-date copy of a Chelmsford KIID, Important Information for Investors document, Prospectus, most recent Annual or Interim Fund Reports or additional CM99 2XG application forms, please visit www.mandg.co.uk/literatureor call our Customer Relationsteam. This Financial Promotion is issued by M&G Securities Limited which is authorised and regulated by the Financial Conduct Authority in the UK and provides ISAs and other investment products. The company’s registered office is Laurence Pountney Hill, London EC4R 0HH. Registered in England No. 90776. JULY 16 / 140901