M&G (Lux) Global Macro Bond FundEuro Class A-H – Accumulation sharesMonthly Fund Review as at 29 February 2020For investment professionals only

Highlights• Risk-averse sentiment prevailed among global investors as concerns about the coronavirus increased.• Core government bond yields declined amid a preference for perceived safe-havens, which pushed up bond prices.• We again lengthened duration and added to the fund’s US dollar allocation in the month.

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. Investments in bonds are affected by interest rates, inflation and credit ratings. It is possible that bond issuers will not pay interest or return the capital. All of these events can reduce the value of bonds held by the fund. High yield bonds usually carry greater risk that the bond issuers may not be able to pay interest or return the capital. The fund may use derivatives to profit from an expected rise or fall in the value of an asset. Should the asset’s value vary in an unexpected way, the fund will incur a loss. The fund’s use of derivatives may be extensive and exceed the value of its assets (leverage). This has the effect of magnifying the size of losses and gains, resulting in greater fluctuations in the value of the fund. Investing in emerging markets involves a greater risk of loss as there may be difficulties in buying, selling, safekeeping or valuing investments in such countries. The hedging process seeks to minimise, but cannot eliminate, the effect of movements in exchange rates on the performance of the hedged share class. Hedging also limits the ability to gain from favourable movements in exchange rates. 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-H Accumulation 4,4% -5,7% 2,7% 2,3% -4,7% Benchmark 5,1% - - - - Sector 6,5% -4,2% 2,7% 4,3% -1,1%

Performance over 5 years

91.0

94.0

97.0

100.0

103.0

106.0

Inde

xed

to 1

00

Feb 15 Dec 15 Dec 16 Dec 17 Dec 18 Feb 20

Euro A-H Accumulation (99,9)

Fund performance

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

5 years (%)p.a.

Euro A-H Accumulation 1,1% 2,5% 1,3% 3,5% 0,5% -0,2% Benchmark 1,1% 2,2% 2,7% 7,2% - - Sector -0,5% 0,7% 0,2% 4,2% 1,2% 1,1%

Past performance is not a guide to future performance.The benchmark is a comparator against which the fund’s performance can be measured. The index has been chosen as the fund’s benchmark as it best reflects thescope of the fund’s investment policy. The benchmark is used solely to measure 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 26 October 2018 is that of the EUR Class A-H Accumulation of the M&G Global Macro Bond Fund (a UK-authorised OEIC), which mergedinto this fund on 26 October 2018. Tax rates and charges may differ.

Source: Morningstar, Inc and M&G, as at 29 February 2020. Returns are calculated on a price to price basis with income reinvested.Benchmark returns stated in EUR terms. The Bloomberg Barclays Global Aggregate Index was introduced as the fund’s benchmark on 26 October 2018.

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 Jim LeavissFund manager tenure from 15 October 1999Deputy fund manager Claudia CalichISIN LU1670719886Launch date of fund 26 October 2018Launch of share class 26 October 2018Fund size (millions) € 670,00Fund type SICAVBenchmark Bloomberg Barclays Global Aggregate IndexNumber of issuers 88Average credit rating AModified duration (years) 7,65VaR 2,95%Average coupon 2,49Spread duration (years) 0,2

‘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 4,00%Ongoing charge 1,51%

Things you should knowThe fund may invest more than 35% in securities issued by any one or more of thegovernments listed in the fund prospectus. Such exposure may be combined with theuse of derivatives in pursuit of the fund objective. It is currently envisaged that thefund’s exposure to such securities may exceed 35% in the governments of Germany,Japan, UK, USA although these may vary subject only to those listed in theprospectus.The fund allows for the extensive use of derivatives.

Fund ratingsMorningstar Analyst rating

Overall Morningstar rating QQSource of Morningstar ratings: Morningstar, as at 29 February 2020

Ratings should not be taken as a recommendation.

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Asset breakdown (%)

PhysicalShort

(via CDS)Long

(via CDS) NetGovernment bonds 62,9 0,0 0,0 62,9Investment grade corporate bonds 17,9 -17,0 0,0 0,9Fixed rate 5,1 0,0 0,0 5,1Floating rate 12,2 0,0 0,0 12,2Index linked 0,6 0,0 0,0 0,6Credit default swap indices 0,0 -17,0 0,0 -17,0High yield corporate bonds 3,3 -5,4 1,6 -0,6Fixed rate 3,3 0,0 0,0 3,3Floating rate 0,0 0,0 0,0 0,0Index linked 0,0 0,0 0,0 0,0Credit default swap indices 0,0 -5,4 1,6 -3,9Securitised 3,5 0,0 0,0 3,5Emerging markets 14,1 -5,1 0,0 9,0Equities 0,0 0,0 0,0 0,0Other 0,0 0,0 0,0 0,0Cash -1,7 0,0 0,0 24,3

Credit rating breakdown (%)

PhysicalShort

(via CDS)Long

(via CDS) NetAAA 17,5 0,0 0,0 17,5AA 47,9 0,0 0,0 47,9A 10,6 0,0 0,0 10,6BBB 15,7 -17,0 0,0 -1,3BB 6,2 -5,1 0,0 1,0B 3,3 -5,4 1,6 -0,6CCC 0,5 0,0 0,0 0,5CC 0,1 0,0 0,0 0,1C 0,0 0,0 0,0 0,0D 0,0 0,0 0,0 0,0No rating 0,0 0,0 0,0 0,0Cash -1,7 0,0 0,0 24,3

Country breakdown (%)

PhysicalShort

(via CDS)Long

(via CDS) NetUS 52,8 0,0 0,0 52,8UK 11,2 0,0 0,0 11,2Germany 5,4 0,0 0,0 5,4Japan 5,4 0,0 0,0 5,4Canada 2,5 0,0 0,0 2,5Brazil 2,2 0,0 0,0 2,2Mexico 2,1 0,0 0,0 2,1Norway 2,0 0,0 0,0 2,0Other 18,1 0,0 0,0 18,1High Yield indices 0,0 -5,4 1,6 -3,9Investment Grade indices 0,0 -17,0 0,0 -17,0Cash -1,7 0,0 0,0 24,3Other 0,0 -5,1 0,0 -5,1

Largest issuers (%)Fund

US 44,3Germany 5,4Japan 5,4European Bank for Reconstruction and Development 2,2Norway 2,0UK 1,9Canada 1,9Citigroup 1,9Brazil 1,7Russia 1,7

Maturity breakdown (%)Physical

0 - 1 years 6,41 - 3 years 7,03 - 5 years 30,55 - 7 years 6,37 - 10 years 34,510 - 15 years 1,815+ years 15,2Cash -1,7

Currency breakdown (%)Pre-hedge Post-hedge

US dollar 62,4 36,8Japanese yen 5,4 26,9Euro 10,7 18,6Swedish krona 0,0 3,0Norwegian kroner 2,0 2,9British pound 6,5 2,5Danish krone 0,0 2,1Canadian dollar 1,9 1,9Brazilian real 1,7 1,7Other 9,3 3,6

Industry breakdown (%)

PhysicalShort

(via CDS)Long

(via CDS) NetSovereign 70,5 0,0 0,0 70,5Banking 9,9 0,0 0,0 9,9Foreign Sovereign 3,7 0,0 0,0 3,7Supranational 3,1 0,0 0,0 3,1Mortgage backed 2,2 0,0 0,0 2,2Healthcare 1,8 0,0 0,0 1,8Telecommunications 1,8 0,0 0,0 1,8Energy 1,6 0,0 0,0 1,6Insurance 1,5 0,0 0,0 1,5Asset backed 0,8 0,0 0,0 0,8Local-Authority 0,6 0,0 0,0 0,6Real Estate 0,6 0,0 0,0 0,6Services 0,5 0,0 0,0 0,5Media 0,5 0,0 0,0 0,5Financial services 0,4 0,0 0,0 0,4Covered Bonds 0,3 0,0 0,0 0,3Consumer goods 0,3 0,0 0,0 0,3Retail 0,3 0,0 0,0 0,3Utility 0,3 0,0 0,0 0,3Technology & electronics 0,3 0,0 0,0 0,3Basic industry 0,3 0,0 0,0 0,3Leisure 0,3 0,0 0,0 0,3Commercial Mortgage Backed 0,0 0,0 0,0 0,0Quasi & foreign government 0,0 -5,1 0,0 -5,1Investment Grade indices 0,0 -17,0 0,0 -17,0High Yield indices 0,0 -5,4 1,6 -3,9Cash -1,7 0,0 0,0 24,3

Duration by currency and asset classFund Futures Swaps Net

Euro 0,4 0,0 0,6 1,0British pound 0,3 0,3 0,0 0,6US dollar 4,8 0,0 0,0 4,8Other 1,3 0,0 0,0 1,4Total 6,8 0,3 0,6 7,7

CommentaryThe coronavirus outbreak dominated sentiment in global financial markets as February progressed, with investors focused on the implicationsof the spread of the disease to many countries outside China. Equity markets recorded steep declines, while core government bond yields fellamid a flight to perceived safe-haven assets, which pushed up bond prices.This backdrop also helped the US dollar and Japanese yen to find support in the currency markets. However, areas of corporate bonds andemerging market debt sold off amid the risk-averse environment. In core government markets, 10-year US Treasury yields declined to 1.1%from 1.5%, while 10-year German bund yields fell further into negative territory to -0.6% from -0.4%. In the UK, 10-year gilt yields fell to 0.4%from 0.5%.The fund remained invested in a globally diversified bond portfolio. Our main adjustments to the fund’s positioning in the year-to-date periodinclude significantly lengthening its duration. We continue to increase duration in February, which helped the fund’s performance as yields fell.Among other favourable considerations, the fund’s two largest exposures within its currency positioning, to the US dollar and Japanese yen,performed well.

Key changesActive management of the fund’s duration, as well as its credit risk and currency exposures, remain its key long-term performance drivers.During February, we maintained our recent preference to position the fund defensively, a stance that largely reflects our cautious economicoutlook. At the end of the month, the fund’s duration stood at 7.7 years, up from 6.6 years.The US dollar remained the fund’s largest contributor to its duration by currency. During the month, the duration contributions from the USdollar, euro, and sterling were increased. Among other developed markets, the fund’s duration contributors by currency include the Australiandollar, based partly on the prospect of lower interest rates in the country (the Reserve Bank of Australia confirmed a 0.5% cut in interest rateson 2 March).In corporate bond markets, our overall approach to exposure remained cautious, which included keeping an underweight position toinvestment grade credit. We also kept a significantly underweight allocation to high yield bonds, with credit default swap (CDS) instrumentshelping to maintain this stance.Despite the coronavirus theme, we continued to hold select exposures to emerging market bonds based on our constructive view of long-termvaluations. However, within our emerging market allocation, some local currency positions were lowered, including the Indonesian rupiah aftergood performance. We also reduced exposure to the Malaysian ringgit, a currency sensitive to the coronavirus concerns. Among corecurrencies, we added back US dollar exposure amid the global risk-off environment. In Europe, we maintained Swedish and Norwegiancurrency positions, modestly reduced the fund’s euro weighting, and added to a Danish krone allocation.

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Fund codes and charges

Share class ISIN Bloomberg CurrencyLaunch date of

fundOngoing

chargeDistribution

yieldUnderlying

yield

Minimuminitial

investment

Minimumtop up

investmentEuro A Acc LU1670719613 MGGMEAA LX EUR 26/10/2018 1,49% - 0,53% €1.000 €75Euro A Inc LU1670719704 MGGMEAD LX EUR 26/10/2018 1,49% 1,98% 0,53% €1.000 €75Euro A-H Acc LU1670719886 MGGMEAH LX EUR 26/10/2018 1,51% - 0,51% €1.000 €75Euro A-H Inc LU1670719969 MGMEAHD LX EUR 26/10/2018 1,51% 1,95% 0,51% €1.000 €75Euro B Acc LU1670720033 MGGMEBA LX EUR 26/10/2018 1,99% - 0,03% €1.000 €75Euro B Inc LU1670720116 MGGMEBD LX EUR 26/10/2018 1,99% 1,98% 0,03% €1.000 €75Euro B-H Acc LU1670720207 MGMEBHA LX EUR 26/10/2018 2,01% - 0,01% €1.000 €75Euro B-H Inc LU1670720389 MGMEBHD LX EUR 26/10/2018 2,01% 1,95% 0,01% €1.000 €75Euro C Acc LU1670720462 MGGMECA LX EUR 26/10/2018 0,89% - 1,13% €500.000 €50.000Euro C Inc LU1670720546 MGGMECD LX EUR 26/10/2018 0,89% 1,98% 1,13% €500.000 €50.000Euro C-H Acc LU1670720629 MGMECHA LX EUR 26/10/2018 0,91% - 1,11% €500.000 €50.000Euro C-H Inc LU1670720892 MGMECHD LX EUR 26/10/2018 0,91% 1,95% 1,11% €500.000 €50.000Euro CI Acc LU1797819726 MGMCIEA LX EUR 06/11/2018 0,85% - 1,17% €500.000 €50.000Euro CI-H Acc LU1797819999 MGCIHEA LX EUR 06/11/2018 0,87% - 1,15% €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 26 October 2018, the non-sterling assets of the M&G Global Macro Bond Fund, a UK-authorised OEIC, merged into the M&G (Lux) Global Macro Bond Fund, a Luxembourg-authorised SICAV, which launched on 26 October 2018. The SICAV is run by the same fund manager,applying the same investment strategy, as the UK-authorised OEIC.

The M&G (Lux) Global Macro Bond 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-H shares. Copyright © 2020 Morningstar UK Limited. All Rights Reserved. Ratings should not be taken as recommendation.

Where a security has not been rated by Standard & Poor’s, Fitch or Moody’s, we may use M&G’s internal credit rating. Based on a comparison of all available ratings for each security, the most conservative rating (S&P, Fitch, Moody’s or M&G’s internal rating) is taken into consideration.The ratings so identified are then expressed or converted into M&G’s ratings format to obtain uniform information for all securities in the portfolio.

For Investment Professionals only. Not for onward distribution. No other persons should rely on any information contained within. This information is not an offer or solicitation of an offer for the purchase of investment shares in one of the Funds referred to herein. Purchases of a Fund should be based on the current Prospectus. The Instrument of Incorporation, Prospectus, Key Investor Information Document,annual or interim Investment Report and Financial Statements, are available free of charge from M&G International Investments S.A.. They can also be obtained on the website: www.mandgitalia.it. 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.

ContactItalywww.mandgitalia.it

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