Investment firm M&G initiates new fund aimed at transitioning Italian investors into equity markets
M&G Investments, a professional asset management company focused on optimizing investment portfolios, has launched a new fund aimed at helping Italian savers take their first steps into equity markets. The M&G (Lux) Step Into Equity Income 2030 Fund selects dividend-paying equities through an active, quality-focused lens.
The new fund, which has a minimum investment of €1,000, targets savers who remain cautious about equity markets and rely heavily on traditional bonds and deposits. The strategy is designed to reduce volatility while building sustainable income.
The M&G (Lux) Step Into Equity Income 2030 Fund's equity component is managed by Stuart Rhodes, lead manager of the M&G Global Dividend strategy. Rhodes focuses on high-quality businesses with a record of growing dividends. The fund's 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.
The M&G Global Dividend strategy, which is part of the fund's portfolio, focuses on global equities. Dividends are considered an ideal solution for investors looking for reliable, inflation-beating cash flows, according to Rhodes. Dividend-paying equities, as per Rhodes, can offer an attractive combination of income, growth, and resilience.
The fund's 'step-in' mechanism enables investors to gradually shift from bonds into dividend-paying equities. Over the next five years, the equity share in the fund will rise step-by-step to reach 100% by October 2030.
Andrea Orsi, country head of Italy for M&G Investments, comments that the fund is designed to support Italian savers in shifting from fixed income to equities with a focus on income generation. The M&G (Lux) Step Into Equity Income 2030 Fund focuses on dividend-paying equities across various sectors, including healthcare, consumer goods, and technology.
Many Italian households are still keeping much of their savings in bank deposits, which offers minimal returns and leaves their money vulnerable to being eaten away by inflation. The fund aims to provide a solution to this issue by offering a reliable income source, according to M&G Investments. Equities, they believe, are a reliable income source, offering both attractive yields and the potential for dividend growth.
The M&G (Lux) Step Into Equity Income 2030 Fund's strategy is to reduce volatility while building sustainable income. The fund's approach is expected to help Italian savers navigate the equity markets and potentially improve the returns on their investments.
