M&G (Lux) Pan European Select FundEuro Class A – Accumulation sharesMonthly Fund Review as at 31 March 2020For investment professionals only

Highlights• In a very difficult month for European equities, the fund declined and was behind its benchmark, the MSCI Europe NetReturn Index.• Stockpicking within the industrials, consumer staples and communication services sectors was supportive of relativereturns, while selection within financials, consumer discretionary and information technology weighed on returns. Overall,relative performance was hampered by a technical issue concerning fund pricing.• There were no new purchases or complete sales in March.

The main risks associated with this fundFor any past performance shown, please note that past performance is not a guide to future performance.The value and income from the fund's assets will go down as well as up. This will cause the value of your investment to fall as well as rise. There is no guarantee that the fund will achieve its objective and you may get back less than you originally invested. The fund holds a small number of investments, and therefore a fall in the value of a single investment may have a greater impact than if it held a larger number of investments. The fund can be exposed to different currencies. Movements in currency exchange rates may adversely affect the value of your investment. Further risk factors that apply to the fund can be found in the fund's Key Investor Information Document (KIID).

Single year performance (5 years)

2019 2018 2017 2016 2015 Euro A Accumulation 28,9% -15,2% 17,4% 1,3% 13,6% Benchmark 26,0% -10,0% 10,9% 3,2% 8,8%

Performance over 5 years

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Mar 15 Dec 15 Dec 16 Dec 17 Dec 18 Mar 20

Euro A Accumulation (92,8) Benchmark (93,7)

Fund performance

1 month (%) 3 months (%) YTD (%) 1 year (%) 3 years (%)p.a.

5 years (%)p.a.

Euro A Accumulation -15,1% -25,0% -25,0% -16,9% -3,1% -1,5% Benchmark -14,3% -22,6% -22,6% -13,5% -2,8% -1,3%

Past performance is not a guide to future performance.

The benchmark is a comparator against which the fund’s performance can be measured. It is a net return index which includes dividends after the deduction ofwithholding taxes. The index has been chosen as the fund’s benchmark as it best reflects the scope of the fund’s investment policy. The benchmark is used solely tomeasure the fund’s performance and does not constrain the fund's portfolio construction.

The fund is actively managed. The investment manager has complete freedom in choosing which investments to buy, hold and sell in the fund. The fund’s holdingsmay deviate significantly from the benchmark’s constituents.

Fund performance prior to 9 November 2018 is that of the EUR Class A Accumulation of the M&G Pan European Select Fund (a UK-authorised OEIC), which mergedinto this fund on 9 November 2018. Tax rates and charges may differ.Benchmark prior to 31 December 2011 is the FTSE World Europe Index. From 1 January 2012 it is the MSCI Europe Index. Benchmark is Gross Return prior to 9November 2018 and Net Return after this date.

Source: Morningstar, Inc and M&G, as at 31 March 2020. Returns are calculated on a price to price basis with income reinvested.Benchmark returns stated in EURterms.

Performance charts © 2020 Morningstar Inc., All Rights Reserved. The information contained within: (1) is proprietary to Morningstar and/or its content providers;(2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for anydamages or losses arising from any use of this information.

Key informationFund manager John William OlsenFund manager tenure from 01 July 2014Deputy fund manager Michael OliverosISIN LU1670716437Launch date of fund 09 November 2018Launch of share class 09 November 2018Fund size (millions) € 104,15Fund type SICAVBenchmark MSCI Europe Net Return IndexSector Morningstar Europe Large-Cap Blend Equity sectorNumber of companies 29Portfolio turnover over 12 months (%) 5,97VaR 20,88%

‘Manager tenure’ includes the period when managing an equivalent UK-authorised OEIC. Please see ‘Importantinformation’ at the end of this document for further details.

ChargesMaximum entry charge 5,00%Ongoing charge 1,74%

Largest holdings (%)Fund Index Relative weight

Novo Nordisk 7,4 1,5 5,9Schneider Electric 5,6 0,7 5,0Nestle 5,6 4,3 1,2Fresenius Medical Care 5,4 0,2 5,2CTS Eventim 5,0 0,0 5,0Kuehne UND Nagel International 4,8 0,1 4,6Unilever 4,7 1,8 2,9DSV 4,6 0,3 4,3Reckitt Benckiser 4,4 0,8 3,7WH Smith 4,4 0,0 4,4

Risk characteristicsAs at 31/03/2020 FundAlpha (%) 1,80Information ratio 0,40Sharpe Ratio -0,15Historic tracking error (%) 3,88Beta 0,95Standard deviation (%) 31,63Forecast tracking error (active risk, %) 5,57Active share (%) 86,88

Things you should knowThe fund invests mainly in company shares and is therefore likely to experience largerprice fluctuations than funds that invest in bonds and/or cash.Performance is stated in the share class currency, which may differ from yourdomestic currency. As a result, the return may rise or fall due to currency movements.

Fund ratingsMorningstar Analyst rating

Overall Morningstar rating QQQSource of Morningstar ratings: Morningstar, as at 31 March 2020

Ratings should not be taken as a recommendation.

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Country breakdown (%)

Fund IndexRelative

weightUK 24,9 41,3 -12,5Denmark 19,1 19,7 -5,5Germany 15,6 35,4 -9,5Switzerland 11,6 3,1 8,2France 7,3 0,1 18,3Netherlands 6,2 0,0 1,3Norway 4,2 0,9 3,3Spain 3,7 4,2 -0,5Other 6,1 15,0 -8,9Cash 1,3 0,0 1,3

Industry breakdown (%)

Fund IndexRelative

weightIndustrials 21,4 12,8 8,6Health care 19,0 16,6 2,4Consumer staples 14,7 15,6 -0,9Consumer discretionary 10,1 9,2 0,9Materials 9,9 7,1 2,8Information technology 7,9 6,8 1,1Financials 6,5 15,6 -9,1Communication services 5,0 4,3 0,7Energy 4,2 5,7 -1,5Utilities 0,0 5,0 -5,0Real Estate 0,0 1,3 -1,3Cash and near cash 1,3 0,0 1,3

Capitalisation breakdown (%)

Fund IndexRelative

weight> €50 billion 28,8 41,5 -12,7€25 - €50 billion 14,3 19,7 -5,5€5 - €25 billion 25,9 35,2 -9,3€2.5 - €5 billion 11,3 3,1 8,2< €2.5 billion 18,4 0,4 18,0Cash and near cash 1,3 0,0 1,3

Largest overweights (%)

Fund IndexRelative

weightNovo Nordisk 7,4 1,5 5,9Fresenius Medical Care 5,4 0,2 5,2CTS Eventim 5,0 0,0 5,0Schneider Electric 5,6 0,7 5,0Kuehne UND Nagel International 4,8 0,1 4,6WH Smith 4,4 0,0 4,4Linde 4,3 0,0 4,3DSV 4,6 0,3 4,3Equinor 4,2 0,2 4,0Akzo Nobel 4,2 0,2 4,0

Largest underweights (%)

Fund IndexRelative

weightRoche 0,0 3,2 -3,2Novartis 0,0 2,5 -2,5Royal Dutch Shell 0,0 1,9 -1,9Astrazeneca 0,0 1,7 -1,7HSBC 0,0 1,6 -1,6ASML 0,0 1,6 -1,6LVMH 0,0 1,5 -1,5Sanofi 0,0 1,4 -1,4Total 0,0 1,3 -1,3BP 0,0 1,2 -1,2

CommentaryIn a continuation from the end of February, European equities were hit hard in March, as concerns about the Covid-19 pandemic led to theworst quarter for global markets since the 2008 financial crisis, and for some the worst first quarter on record.Market attention during the month was dominated by news on the coronavirus as investors came to grips with a resultant impendingrecession, with billions of people across the world facing lockdowns and high streets closed for business. Elsewhere, the combination ofweakening global economic demand and the Saudi-Russia price war sent oil prices down to their lowest level since 2002. Subsequently, energywas far and away the worst performing sector globally for the month, although it proved relatively more robust within European markets,where financials, real estate and industrials delivered the weakest returns. The most resilient sectors for the month were, unsurprisingly giventhe circumstances, healthcare and consumer staples.Against this backdrop, the fund declined and was behind its benchmark, the MSCI Europe Net Return Index. Stockpicking within theindustrials, consumer staples and communication services sectors was supportive of relative returns, as was the underweight in financials andoverweight in healthcare. Conversely, stockpicking within financials, consumer discretionary and information technology weighed on returns.Overall, relative performance was hampered by a technical issue concerning fund pricing (the fund is priced at one o’clock Luxemburg timewhile the index is priced at market close, meaning a late stage market rally was not captured in the fund’s pricing).At a stock level, the fund’s largest detractor was UK retailer WH Smith. The company issued a profit warning in light of the coronaviruspandemic, which, given widespread travel bans and country lockdowns, led to a major drop in shoppers at its airport outlets.General malaise within the European banking sector also saw Dutch financial institution ING, Irish lender AIB and Georgia’s Bank of Georgiadecline significantly during the month.Another key detractor was Spain-listed airline industry IT outsourcing business Amadeus. The company reported that it had adopted a set ofmeasures to protect its liquidity, as a combination of trip cancellations and country-specific restrictions on international flights had had asevere impact on the global airline industry, and hence Amadeus’s volumes. Amadeus said it was reducing costs and capital expenditure by€300 million and was cancelling its planned dividend payment.On the upside, the fund’s largest contributor to relative returns was multinational pharma business Novo Nordisk. The company has deliveredongoing operational success, including gaining regulatory approval for new products and label expansion to widen the treatable conditionsfor existing products. In March it also announced that the New England Journal of Medicine had published favourable results of a phase 3trial evaluating the use of one of Novo Nordisk’s medications – Saxenda – in treating adolescents with obesity.British consumer giant Reckitt Benckiser bolstered returns as well. The coronavirus has created unprecedented demand for Reckitt’s hygieneand healthcare products, including antiseptic Dettol, throat lozenge Strepsils and condom brand Durex.Other supportive holdings included the UK’s Pets at Home, as one of the few retailers allowed to continue operating during the UK lock-down,and Swiss freight-forwarding specialist Kuehne + Nagel, the majority of whose UK-based contract logistics operations are to be acquired byXPO Logistics. This is in line with Kuehne + Nagel’s strategy to improve profitability and focus on its core, scalable solutions.

Key changesThere were no new purchases or complete sales in March.

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Fund codes and charges

Share class ISIN Bloomberg CurrencyShare class launch

dateOngoing

chargeHistoric

yield

Minimuminitial

investment

Minimumtop up

investmentEuro A Acc LU1670716437 MGPESEA LX EUR 09/11/2018 1,74% - €1.000 €75Euro B Acc LU1670716510 MGPESEB LX EUR 09/11/2018 2,24% - €1.000 €75Euro C Acc LU1670717674 MGPESEC LX EUR 09/11/2018 0,99% - €500.000 €50.000Euro CI Acc LU1797818322 MPSECIA LX EUR 19/11/2018 0,95% - €500.000 €50.000

The ongoing charge figures disclosed above include direct costs to the fund, such as the annual management charge (AMC), administration charge and custodian charge, but do not include portfolio transaction costs. They are based on expenses for the period ending 30 September 2019.Any ongoing charge figure with * indicates an estimate. The fund's annual report for each financial year will include details of the exact charges.

Please note that not all of the share classes listed above might be available in your country.Please see the Important Information for Investors document and the relevant Key Investor Information Document for more information on the risks associated with this fund and which share classes are available for which product and which investor type.

Important informationOn 9 November 2018, the non-sterling assets of the M&G Pan European Select Fund, a UK-authorised OEIC, merged into the M&G (Lux) Pan European Select Fund, a Luxembourg-authorised SICAV, which launched on 9 November 2018. The SICAV is run by the same fundmanager, applying the same investment strategy, as the UK-authorised OEIC.On 1 January 2012 and 9 November 2018, the fund’s performance comparator changed.Past performance of the fund and index includes recoverable withholding tax which may not be applicable to the SICAV.

The M&G (Lux) Pan European Select Fund is a sub-fund of M&G (Lux) Investment Funds 1.

The Morningstar Analyst Rating™. © 2020 Morningstar. All Rights Reserved. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Ratings should not be taken as recommendation.

The Morningstar Overall Rating based on the fund’s Euro Class A shares. Copyright © 2020 Morningstar UK Limited. All Rights Reserved. Ratings should not be taken as recommendation.

For Investment Professionals only. Not for onward distribution. No other persons should rely on any information contained within. The Instrument of Incorporation, Prospectus, Key Investor Information Document, annual or interim Investment Report and Financial Statements, are available free of charge in paper form from M&G International Investments S.A., German branch, mainBuilding, Taunusanlage 19,60325 Frankfurt am Main. Before subscribing investors should read the Prospectus, which includes a description of the investment risks relating to these funds. This financial promotion is issued by M&G International Investments S.A. Registered Office: 16, Boulevard Royal, L-2449, Luxembourg.

ContactFinlandwww.mandg.fi

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