22 April 2010

Citywire LuxembourgM&G Pan European Dividend Fund

2

The fund manager

• Joined M&G in 1999 as an insurance equity analyst

• Member of the European Equities team since 2001

• CFA charterholder

• Manager of the M&G Pan European Dividend Fund and the M&G European Strategic Value Fund

• Manager of Prudential dividend-based European equities mandates since 2002

Richard Halle

3

Agenda

• Dividend strategies work over the long term

• Why now is a pivotal moment in the dividend cycle

• M&G’s approach and dividend offering in Europe

4

0

20

40

60

80

100

120

140

160

1975

1977

1979

1981

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

Reb

ased

to 1

975

= 1

Above average dividend yield Below average dividend yield

High dividend paying stocks outperformThe long-term view

Source: SocGen, The Global Income Investor, February 2010. Global ex-US universe

Cumulative returns from buying stocks with above-average versus below-average dividend

5

80

100

120

140

160

180

200

220

240

260

280

300

320

Feb 60 Feb 65 Feb 70 Feb 75 Feb 80 Feb 85 Feb 90 Feb 95 Feb 00 Feb 05 Feb 10

M&G Charifund (M&G’s oldest dividend fund)

Charifund FTSE All-Share Index

Source: Morningstar, M&G Statistics as at 31 January 2010. Bid to bid, net income reinvested

Please note that this fund is not registered in Switzerland and is not available for public distribution

Relative to FTSE All-Share Index

Cumulative total return relative to index

50-year real life experience showing dividendinvesting works

6

Dividend strategies work over the long term

• Dividends account for the majority of equity returns

• Dividend yields are a useful valuation signal

• Dividends impose discipline on corporate management

• Dividend yield targets impose discipline on fund manager

7

Agenda

• Dividend strategies work

– Why has there been so little interest in dividends?

• Why should there be interest now

• M&G’s approach and dividend offering in Europe

8

-5

0

5

10

15

20

25

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

Average 7.5%

Good returns did not push people to seek risky equities

Long-term government bond performance

Source: Merrill Lynch, EMU Direct 31 December 2009

To

tal

retu

rn %

Bull market in bonds

9

-60-50-40-30-20-10

010203040506070

19

75

19

76

19

77

19

78

19

79

19

80

19

81

19

82

19

83

19

84

19

85

19

86

19

87

19

88

19

89

19

90

19

91

19

92

19

93

19

94

19

95

19

96

19

97

19

98

19

99

20

00

20

01

20

02

20

03

20

04

20

05

20

06

20

07

20

08

20

09

Price return average 1975-2000 average 2001-2009

Average 15.3%

Average -2.4%

European equity returnsT

ota

l re

turn

%

Bull markets conditioned investors to focus on capital gains…

Source: Datastream, European market, end 1974 to end 2009

10

Agenda

• Dividend strategies work over the long term

• Why now is a pivotal moment in the dividend cycle

• M&G’s approach and dividend offering in Europe

11 Source: DataStream, European market dividend yield versus nominal 10yr German government bond yield from Dec 1979 to March 2010

0

2

4

6

8

10

12

1979

1980

1981

1982

1983

1984

1985

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

Yiel

d, %

Dividend yield Excess Bond Yield - Dividend Yield

Equity dividend yields now higher than bond yields

Equities yielding more than bonds

12

Are government bonds really risk-free?

0

200

400

600

800

Ireland Spain Germany EU UK France Portugal USA Greece Italy

Official net debt Total net liabilities (on and off balance sheet)

Source: SocGen, National Center for Policy Analysis, OECD. February 2010

Debt as % of GDP

13 Source: M&G, Factset, FTSE World Europe, December 2009

1985

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

%Corporate balance sheets are strong

Debt to common equity

European corporates becoming less leveraged

14

Dividends have been quickly rebased

A record year for dividend cuts in Europe

Source: ScoGen, February 2010

-40-30-20-10

01020304050

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

European dividend growth Y/Y%

15

Why now?

Source: M&G, January 2010, PIMCO, Investment Outlook, July 2009

Even non-dividend investors like dividends

Aled Smith, M&G

“Everybody knows about the power of dividends and how they contribute to total shareholder return. .. The top five countries in dividend growth are the same top five countries in total

shareholder return”

Bill Gross, PIMCO

“Investors who stuffed themselves on a constant diet of

asset appreciation … should stress secure income offered by

bonds and stable dividend-paying equities”

16

Agenda

• Dividend strategies work over the long term

• Why now is a pivotal moment in the dividend cycle

• M&G’s approach and dividend offering in Europe

17

Investment philosophy

• Dividends are undervalued by a market seeking instant

gratification, despite being the largest component of total return

• Not all dividends are created equal

• High dividend yields are a good place to find attractive risk/reward

opportunities

• High dividend yields do not necessarily mean low growth

18

M&G Pan European Dividend Fund

• Invest in companies with quality yield and positioned to grow the dividend

• Grow the portfolio’s dividend income ahead of inflation

• Portfolio yield premium to market typically 10-30%

Investment objectives

What are the key portfolio characteristics?

19

-20-15-10-50

5101520

3 years 5 years 10 years

Ann

ualis

ed re

turn

s, %

Above-average yield portfolio Balance sheet strength Earnings cover

Why do we focus on quality yield?

Source: Soc Gen, The Global Income Investor, February 2009

Balance sheet strength adds to returns and protects against downside

European ex UK total returns of different dividend yield strategies

20

Dividends are the strongest signal of capital allocation discipline

What do we mean by quality yield?

Dividend cover Balance sheet strengthWillingness to pay

dividends

21

Investing in growing dividends

Looking for sustainable, quality, growing dividends

Turnaround / improving companies

Out of favourhigh-quality companies

Highly operationally /

financially leveraged companies

Sustainable, reliable dividend

growers

Investment universe

SMART DIVIDEND SCREEN

Balance sheet qualityDividend coverEarnings qualityAsset backing Implied returns

Dividend track record

22

Investing in growing dividends

Looking for sustainable, quality, growing dividends

Turnaround / improving companies

Out of favourhigh-quality companies

Highly operationally /

financially leveraged companies

Sustainable, reliable dividend

growers

23

Out of favour, quality companies

Dividend yield 4.75%

Dividend cover 2.3x

Balance sheet strength

Excess capital: €6bn buffer

Willingness to pay dividends

5-year dividend CAGR: 34.5%

Share buybacks

Munich Re

Source: Bloomberg, M&G, KBW, 29 March 2010

24

Sustainable, reliable dividend growers

Dividend yield 3.20%

Dividend cover 2.0x

Balance sheet strength

Virtually debt free

Sale of Alcon

Willingness to pay dividends

5-year dividend CAGR: 14.2%

Share buybacks

Nestlé

Source: Bloomberg, M&G, JP Morgan, 29 March 2010

25

Turnaround, improving companies

Dividend yield 2.96%

Dividend cover 2.5x

Balance sheet strength

25% of capital employed in businesses to be sold

8.0x interest cover

Willingness to pay dividends

5-year dividend CAGR: 4.3%

Committed to cashflow-returning businesses

New management

Smiths Group – industrial and technology conglomerate

Source: Bloomberg, M&G, 29 March 2010

26

What to avoid – The wrong type of dividend

Dividend yield 3.80%

Dividend cover 2.1x

Balance sheet strength

High earnings volatility

High debt levels

Debt/equity: 106.7%

Willingness to pay dividends

5-year dividend CAGR: 0.02%

Poor acquisition record

Numerous rights issues"

Lafarge – Construction materials

Source: Bloomberg, M&G, 29 March 2010

0.0

1.0

2.0

3.0

4.0

5.0

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

0

50

100

150

200

250

300

350

DPS, € Shares outstanding, m (rhs)

Dividends per share and shares outstanding

27

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

4.5 Gross Dividend yield, %

Yield premium of 23%

Portfolio characteristics

Source: M&G, Bloomberg, March 2010, versus FTSE World Europe index

Higher and more sustainable yield than the benchmark

0.0

0.20.4

0.6

0.8

1.01.2

1.4

1.61.8

2.0Debt/EBIDTA (ex financials)

Lower debt

0.00

0.01

0.01

0.02

0.02

0.03

0.03

0.04

0.04

0.05 Dividend cut probability

Greater resilience to cuts

M&G Pan European Dividend Fund FTSE World Europe Index

28

M&G Pan European Dividend Fund

-50%

-40%

-30%

-20%

-10%

0%

10%

Jul-08 Oct-08 Jan-09 Apr-09 Jul-09 Oct-09 Jan-10

Cum

ulat

ive

retu

rn

M&G Pan European Dividend Fund (€) FTSE World Europe (€)

Cumulative returns since launch

Source: M&G, Datastream, euro share class A, bid to bid, after fees, from 18/07/2008 to 31/03/2010

29

Richard Halle’s internal European dividend mandate

0%

5%

10%

15%

20%

25%

Dec-01

Jun-02

Dec-02

Jun-03

Dec-03

Jun-04

Dec-04

Jun-05

Dec-05

Jun-06

Dec-06

Jun-07

Dec-07

Jun-08

Dec-08

Jun-09

Dec-09

Cum

ulat

ive

retu

rn

Excess returns over benchmark

14.3%

Cumulative outperformance since 2002

Source: M&G, Xamin, monthly returns in euros, gross of fees, 31/12/2001 to 31/03/2010

The Pan European segment of the Prudential World Value Fund is a dividend-based mandate managed by Richard Halle since 31/12/01. The M&G Pan European Dividend Fund follows the same investment process and was launched on 18/07/08.

Base mandate replicated in the M&G Pan European Dividend Fund – Successful, tried and tested approach

30

Pan European Dividend Fund

• Dividends deliver higher total returns

• Now is the time to invest in dividends

• M&G has 50 years experience in managing dividend strategies

• Proven approach of our European mandates

Summary

31

Appendix

AppendixM&G Pan European Dividend Fund

32

Fund facts

• Fund manager: Richard Halle (since July 2008)

• Launch date: 18 July 2008

• Fund size: €26.1 million

• Benchmark: FTSE World Europe Index

• Fund manager objective: “Long term capital growth from a

portfolio of European companies”

Source: M&G as at 31 March 2010

M&G Pan European Dividend Fund

33

Top 10 holdings

Source: M&G, as at 31 March 2010

Name Managed Benchmark Relative

BP 5.4 2.0 3.4Total 5.0 1.6 3.4Sanofi-Aventis 5.0 1.1 3.9Vivendi 4.4 0.4 4.1Vodafone 4.2 1.4 2.8TNT 3.8 0.1 3.7BNP Paribas 3.5 1.0 2.5HSBC 3.5 2.0 1.5E.On 2.7 0.9 1.8Credit Suisse 2.6 0.7 2.0

34

Sector breakdown

Sector Managed Benchmark Relative

Financials 20.3 23.3 -3.0

Consumer Goods 15.6 14.3 1.3

Oil & Gas 12.6 10.5 2.2

Consumer Services 10.7 7.0 3.7

Health Care 9.8 8.1 1.7

Telecommunications 9.5 6.5 3.0

Industrials 8.9 10.4 -1.6

Utilities 6.1 8.0 -1.9

Basic Materials 5.1 9.3 -4.2

Technology 1.2 2.7 -1.5

Cash 0.2 0.0 0.2

Source: M&G, as at 31 March 2010

35

-6

-4

-2

0

2

4

6

Cons. Serv.

Telcos

Cons. G

oods

Oil & G

as

Health C

are

Cash

Utilities

Industrials

Technology

Financials

Basic Materials

Activ

e w

eigh

ts, %

Sep-09

Dec-09

Mar-10

Current fund positioning

Source: M&G, end March 2010

Active weights

Active weights by industry and quarter, %

Active weights, %

Consistent underweight in basic materials, financials;overweight in consumer services, telcos

36

Country breakdown

Country Managed Benchmark Relative

Austria 1.1 0.8 0.2Austria 1.1 0.8 0.2Belgium 3.0 2.3 0.7Cash 0.2 0.0 0.2Denmark 0.0 1.6 -1.6Eire 0.5 0.4 0.1Finland 1.2 1.7 -0.5France 22.9 18.2 4.7Germany 16.4 11.6 4.8Greece 2.0 0.7 1.3Hungary 0.0 0.3 -0.3Italy 2.1 5.9 -3.9Netherlands 13.2 4.2 9.1Norway 0.8 1.9 -1.1Poland 0.0 1.1 -1.1Portugal 0.0 0.9 -0.9Spain 1.4 6.9 -5.5Sweden 3.5 3.9 -0.4Switzerland 9.3 10.2 -0.9United Kingdom 22.4 27.3 -4.8

Source: M&G, as at 31 March 2010

37 Source: M&G, as at 31 March 2010

Market cap band Fund % Index % Relative %

>€ 50 billion 41.4 29.3 12.1

€25 - €50 billion 17.2 27.2 -10.0

€5 - €25 billion 27.5 33.6 -6.1

€2.5 - € 5 billion 8.5 8.0 0.6

<€ 2.5 billion 5.1 1.9 3.1

Cash 0.2 0.0 0.2

Market cap split

38

Portfolio skyline – M&G Pan European Dividend FundTrue to label – dividend measures dominate

Source: Style Research as at end March 2010

-3

-2

-1

0

1

2

3

4

5

Boo

k to

Pric

e

Div

iden

d Y

ield

Ear

ning

s Y

ld

C'F

low

Yie

ld

Sal

es to

Pric

e

EB

ITD

A to

Pric

e

IBE

S D

iv Y

ld

IBE

S E

ngs

Yld

IBE

S S

ales

Yld

Sal

es to

EV

EB

ITD

A to

EV

Rtn

on

Equ

ity

Ear

ning

s G

row

th

Inco

me/

Sal

es

Sal

es G

row

th

IBE

S 1

2Mth

Gr

IBE

S 1

Yr

Rev

IBE

S S

ales

12m

Gr

IBE

S E

ngs

LTG

IBE

S S

ales

LT

G

Sus

tain

able

Gro

wth

Mar

ket C

ap

Log

Mar

ket C

ap

Mar

ket B

eta

Mom

entu

m S

T

Mom

entu

m M

T

Deb

t/Equ

ity

For

eign

Sal

es

Ear

ning

s G

r S

tabi

lity

Sal

es G

r S

tabi

lity

Low

Acc

rual

s

Std

Dev

Sustainable dividends from less volatile firms

Portfolio tilts vs. Benchmark

Value Growth

Sta

nd

ard

dev

iati

on

fro

m b

ench

mar

k m

ean

Other

39

Portfolio construction

Fund Yield

Index Yield

0.0

2.0

4.0

6.0

8.0

10.0

12.0

OPA

P SA

DEUT

SCHE

TEL

EKO

M

PUBL

IC P

OW

ER C

OR

TELE

KOM

AUS

TRIA

VIVE

NDI

BP P

LC

VODA

FONE

GRO

UP

E.O

N AG

TOTA

L SA

RWE

AG

GLA

XOSM

ITHK

LINE

SWIS

SCO

M A

G-R

EG

HOM

E RE

TAIL

GRO

U

BRIT

AM

ER T

OBA

CC

BALO

ISE

HOL-

REG

REPS

OL

YPF

SA

MUE

NCHE

NER

RUE-

R

SANO

FI-A

VENT

IS

ALLI

ANZ

SE-R

EG

SAIN

SBUR

Y PL

C

WO

LTER

S KL

UWER

STAT

OIL

ASA

ROCH

E HL

DG-G

ENUS

GRO

UPE

BRUX

LAM

B

FBD

HOLD

ING

S PL

C

SOLV

AY S

A-A

SVEN

SKA

CELL

-B

PRUD

ENTI

AL P

LC

UNIB

ET G

ROUP

-SDR

CRED

IT S

UISS

-REG

UNIL

EVER

NV-

CVA

NOKI

A O

YJ

CFAO

AKZO

NO

BEL

AXA

HSBC

HLD

GS

PLC

NEST

LE S

A-RE

G

SMIT

HS G

RP P

LC

TNT

NV

INTE

SA S

ANPA

OLO

TOM

KINS

PLC

BNP

PARI

BAS

BIC

KPN

(KO

NIN)

NV

IMER

YS S

A

SIEM

ENS

AG-R

EG

HEIN

EKEN

HLD

G

VALE

O S

A

DAIM

LER

AG

BAYE

R M

OTO

REN

WK

LEO

NI A

G

PART

YGAM

ING

PLC

Source: M&G, 15 April 2010

Dividend yield by holding

Combining high yielding names with stocks that will grow their dividend

High yielders Dividend growers

40

Dividend growth counts almost as much as dividend yield

Investment process designed to capture both dividend yield AND dividend growth

Contribution to total real returns – US data since 1871 (5-year periods)

Source: SG Global Strategy Research as at February 2009

0

20

40

60

80

100

Dividend yield Growth in dividend Change in valuation

41

M&G Pan European Dividend Fund

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

Jul-08 Oct-08 Jan-09 Apr-09 Jul-09 Oct-09 Jan-10

Stan

dard

dev

iatio

ns a

bove

ben

chm

ark

Trailing dividend yield Forecast dividend yield

Evolution of dividend yield bias

Consistently high dividend yield bias

Source: M&G, Barra, since launch (July 2008) to February 2010

42

6.0

-0.7

-3.2

-0.8

3.9

9.0

2.9

-0.7-1.6

-4

-2

0

2

4

6

8

10

2002 2003 2004 2005 2006 2007 2008 2009 2010 YTD

Richard Halle’s internal European dividend mandate

Annual investment returns vs. MSCI Europe since tenure (31 December 2001)

Source: M&G, Xamin, portfolio returns (gross of fees), in sterling, to 31/03/2010

Calendar year performance since 2002

43

Portfolio construction

• Focused portfolio of 40-60 stocks

• Sector, geographical or market cap biases are a by-product of bottom-up stock selection

• Stock weightings ranked accordingly to valuation and conviction

44

Recent new purchases and completed sales

New purchases Completed sales

Oct-09 Leoni None

Nov-09 None None

Dec-09 CFAO None

Jan-10 None None

Feb-10 None Anglo American, Tessenderlo

Mar-10 FBD Holdings, Prudential None

Source: M&G, March 2010

M&G Pan European Dividend Fund

45

M&G European Equities team

46

CHANGE

M&G EuropeanStrategic Value

M&G Pan European Dividend Fund

M&G Global Convertibles Fund

M&G Pan European

M&G EuropeanSmaller Companies

M&G European

M&G European Special Situations

M&G European Equities – product rangeThree approaches to delivering performance

Product range covering all client needs

VALUEGROWTH

47

Time

Returns

Understanding the company lifecycleBringing the three approaches together…

…and exploiting market inefficiency across the company lifecyle

Value

M&G European Strategic Value Fund

M&G European Special Situations Fund

Change

M&G Pan European Fund

Growth

48

European Equities Team

M&G European Equities

James Alexander(Head of Analyst team)

Chantal WaightJujhar Sohi

Gillian Tiltman

Financials

Consumer

Alistair SmithAlly Brownsword

Anita Ahuja

Industrial & Energy

Graham PhillipsSachin Oza

John Weavers

TMTUpin Dattani

Michael MooreRory Alexander

Portfolio analyst

David Romaní

Fund managers’ assistants

Simon ConnerMaria Municchi

Portfolio Strategy & Risk

Tim ShortIrene Tunkel

Juan Pablo SalgadoRitu Vohora

Source M&G, March 2010

Industry Analyst Team

GrowthGiles Worthington

Charles AnnissChange

Michael StiasnyValue

Richard Halle

Daniel White

ConvertiblesLéonard Vinville

Research co-ordinator

Natalie Johnson

An established structure of talent and resources

49

Fund management teamM&G European Equities

Name Position FundJoined M&G

inYears at M&G

Years of investment experience

Giles Worthington

Head of team

Fund managerM&G Pan European Fund 2001 9 14

Charles Anniss Fund manager M&G European Smaller Companies Fund 2000 9 9

Michael Stiasny Fund managerM&G European Special Situations Fund

M&G European Fund1998 11 11

Richard Halle Fund managerM&G European Strategic Value Fund

M&G Pan European Dividend Fund1999 11 11

Daniel White Dedicated analyst M&G European Strategic Value Fund 2005 4 7

Léonard Vinville Fund manager M&G Global Convertibles Fund 2002 8 15

Average 9 11

Source: M&G, March 2010

50

Team biosM&G European Equities

Source: M&G, March 2010

Name Bio

Giles Worthington

Giles Worthington joined M&G in March 2001 as a fund manager on the European desk. He is head of the M&G European Equities team and fund manager of the M&G Pan European Fund. In 1995, Giles joined Invesco Fund Managers where he managed segregated European smaller companies funds and a global smaller companies fund. Prior to this, Giles worked for Simmons & Simmons, the law firm. Giles graduated from St Hugh’s College, Oxford, with a MA in modern history.

Charles Anniss

Charles Anniss joined M&G in December 2000 as a member of the investment communications team and became an analyst on the equities team in October 2003, focusing on European smaller companies. He became co-manager of the M&G European Smaller Companies Fund with Giles Worthington in March 2006 and was appointed sole manager of the fund in January 2007. He graduated in French and Spanish from Bristol University and is a CFA charterholder.

Michael Stiasny

Michael Stiasny joined in 1998 as an equity analyst, becoming head of the pan-European equity research team in February 2005. He was appointed co-manager of the M&G European Fund in June 2007, becoming sole manager in February 2008. He also became manager of the M&G European Special Situations Fund on its launch in February 2008. Michael graduated in philosophy, politics and economics from Oxford University. He is also a CFA charterholder.

Richard Halle

Richard Halle joined M&G in 1999 as an investment analyst specialising in the insurance sector. Since 2002, he has been a member of the European equities team and in 2008 he was appointed fund manager of the M&G European Strategic Value Fund and M&G Pan European Dividend Fund . Before joining M&G, Richard worked as a security analyst for the Sedgwick Group. Richard graduated from the University of Natal in South Africa with a bachelor of commerce and is a chartered financial analyst (CFA) charterholder.

Daniel WhiteDaniel White joined M&G’s analyst team in 2005. He is a member of the European team, responsible for analysing pan-European companies. Daniel previously worked at Deloitte & Touche as an accountant. He graduated from the University of Southampton with a BSc in oceanography in 2001. In 2005, he qualified as a chartered accountant.

Léonard Vinville

Leonard Vinville joined M&G in January 2002. He is a fund manager in the European equity team. responsible for the M&G Global Convertibles Fund. Leonard previously worked at AGF AM Asset Management (Allianz-Dresdner Group) in Paris where he was the co-head of French equities fund management and responsible for assets of €1.5 billion. Prior to this, he was a financial analyst with Bleu Nuit in Paris. Leonard gained a DEUG and CPEG (Diploma and Certificate of Management Graduate Studies) from the University of Paris in 1990 and completed a master in management in 1992. In 1994, he gained a DECF – Grand Oral of the Chartered Accountant Degree. He completed an MBA (majoring in finance) at the University of London in 1996.

51

Analyst teamSector specialists supporting fund managers

NameB Coverage Education Joined M&G in Years at M&GYears of investment

experience

Ahuja, Anita Consumer MBA (Insead) 2006 4 4

Alexander, James Financials PhD (LSE) 2002 8 18

Alexander, Rory TMT BSc (Bath) 2010 1 2

Brownsword, Ally Consumer BSc (Exeter) 2006 4 4

Dattani, Upin TMT BA (Cambridge), CFA 2007 2 12

Moore, Michael TMT MSc (Warwick) 2005 4 6

Oza, Sachin Industrial & Energy MSc (LBS), CFA 2003 7 12

Phillips, Graham Industrial & Energy BSc (Melbourne) 2005 4 25

Smith, Alistair Consumer MA (Oxford) 2004 6 12

Sohi, Jujhar Financials MSc (UCL) 2008 2 8

Tiltman, Gillian Financials AB (Princeton) 2008 2 6

Waight, Chantal Financials BA (Oxford) 2008 2 13

Weavers, John Industrial & Energy BA (Oxford) 2009 3 3

Average 4 10

Source: M&G as at 31 December 2009

52

Equities Analyst team

James Alexander

Head of Equities Research team Jane Thompson

Team co-ordinator

FinancialsJames Alexander (Head of Research) BanksJujhar Sohi Speciality & Other FinanceChantal Waight Insurance

Life AssuranceGillian Tiltman Real Estate

Consumer

Industrial & Energy

TMT

Alistair Smith General RetailersConsumer StaplesPharmaceuticalsLeisure & Hotels - Pubs only

Anita Ahuja Food & Drug RetailersLeisure & Hotels - except PubsHealthcare ChemicalsHealth

Ally Brownsword Food & Drug RetailersGeneral RetailersLuxury Goods* Support ServicesAgri Chemicals (K&S, Yara, Syngenta)

AN Other

Graham Phillips Autos & TrucksBuilding, Construction, Contractors & MaterialsAerospace & DefenceSteel, CementPaper & Packaging** Support Services

Sachin Oza Electricity (excl Iberia Utilities)Other Utilities (excl UK Water)MiningOil & Gas

John Weavers Industrial ChemicalsUK WaterIberia UtilitiesOil Services

AN Other

Upin Dattani TelecomsRory Alexander Media & Entertainment

TransportMike Moore IT HardwareRory Alexander Software & Computer Services

Electronic & Electric EquipElectrical & Mechanical Engineering** Support Services

AN Other

Source: M&G as at 6 January 2010

53

This document is designed for investment professionals’ use only, not for onward distribution to any other person or entity. For Switzerland: Distribution of this document in or from Switzerland is not permissible with the exception of the distribution to qualified investors according to the Swiss Collective Investment Schemes Act, the Swiss Collective Investment Schemes Ordinance and the respective Circular issued by the Swiss supervisory authority ("Qualified Investors"). Supplied for the use by the initial recipient (provided it is a Qualified Investor) only.

In Spain the Funds are registered for public distribution under Art. 15 of Act 35/2003 on Collective Investment Schemes as follows: Investment Funds (1) reg. no 390, Investment Funds (2) reg. no 601, Investment Funds (3) reg. no 391, Investment Funds (7) reg. no 522, Global Dividend Fund reg.no 713 and Optimal Income Fund reg. no 490. The collective investment schemes referred to in this document (the "Schemes") are open-ended investment companies with variable capital, incorporated in England and Wales.

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. This prospectus, simplified prospectus, annual report and subsequent semi-annual report, are available free of charge, in paper form, from the ACD: M&G Securities Limited, Laurence Pountney Hill, London, EC4R 0HH, GB, or one of the following: M&G International Investments Ltd., Niederlassung Deutschland, Joachimstaler Straße 10-12, D-10719 Berlin, J.P. Morgan AG, Junghofstr 14, D-60311 Frankfurt am Main, M&G International Investments Ltd, Raiffeisen Zentralbank Österreich AG, Am Stadtpark 9, A-1030 Wien, J.P. Morgan Bank Luxembourg S.A., 5 Rue Plaetis, L-2338 Luxembourg, Allfunds Bank, C/Nuria, 57, Mirasierra, E-28034 Madrid, Cassa Centrale Raiffeisen dell'Alto Adige S.p.A, via Laurin I, I-39100 Bolzano, M&G International Investments Limited 90 avenue des Champs Elysées, 75008, Paris, France or from the French centralising agent of the Fund: RBC Dexia Investors Services Bank France, M&G International Investments Ltd., Stockerhof Dreikönigstrasse 31a, CH-8002, Zürich, Switzerland.

Before subscribing you should read the prospectus, which includes investment risks relating to these funds. This financial promotion is published by M&G International Investments Ltd. (Registered Office: Laurence Pountney Hill, London EC4R OHH) authorised and regulated by the Financial Services Authority and registered with the CNMV in Spain.