Investment firm M&G initiates a project aimed at shifting Italians' investments towards equities.
M&G Investments, a prominent asset management institution, has unveiled a new fund aimed at assisting Italian savers in transitioning gradually from fixed income to equities. The M&G (Lux) Step Into Equity Income 2030 Fund is designed to provide a solution for those keeping their savings in bank deposits, offering minimal returns and exposing their money to inflation.
Andrea Orsi, Italy's country head for M&G Investments, comments that the fund is crafted to support Italian savers in taking their initial steps into equity markets. The strategy targets cautious savers heavily reliant on traditional bonds and deposits, with a minimum investment of €1,000.
The M&G (Lux) Step Into Equity Income 2030 Fund's equity share will progressively increase over the next five years, reaching 100% by October 2030. The portfolio allocates 80% to fixed income via M&G's actively managed investment-grade credit strategies and 20% to global equities aligned with the M&G Global Dividend strategy.
Stuart Rhodes, lead manager of the M&G Global Dividend strategy since 2008, oversees the equity component of the M&G (Lux) Step Into Equity Income 2030 Fund. The strategy focuses on high-quality businesses with a history of growing dividends, and the equity component of the fund is centered around generating income.
Dividend-paying equities, as per Rhodes, can offer an attractive blend of income, growth, and resilience, particularly when selected through an active, quality-focused lens. Dividends, according to Rhodes, provide an ideal solution for investors seeking reliable, inflation-beating cash flows that can support their financial goals across market cycles.
The fund's 'step-in' mechanism enables investors to gradually shift from bonds into dividend-paying equities, aiming to reduce volatility while building sustainable income. Dividend-paying equities can be found across various sectors, including healthcare, consumer goods, and technology.
The launch of the M&G (Lux) Step Into Equity Income 2030 Fund occurs at a time when many Italian households are keeping a significant portion of their savings in bank deposits, offering minimal returns and exposing their money to inflation. By offering a solution that gradually moves savers from fixed income to equities, M&G Investments aims to help Italian savers build a more resilient and income-generating portfolio.
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