M&g Plc · LSE:MNG
M&g — M&G Wealth — M&G MPS Webinar (May 2026)
24 slides from M&g's conference presentation, May 2026
Slide 1: M&G MPS Webinar: Diversification for a changing market
M&G MPS Webinar C Diversification for a changing market: Navigating risk and building resilience in 2026 For adviser use only - not for use with retail customers.
Slide 2: Important information
Important information This is just for UK advisers - it's not for use with clients. This presentation is prepared for information only and does not contain or constitute investment advice or recommendation and is accurate at the time of issue. The views expressed herein are subject to change without
Slide 3: A lookback and ahead to the rest of the year
A lookback and ahead to the C rest of the year
Slide 4: Hyperscalers are ramping up capital expenditure
Hyperscalers are ramping up capital expenditure US tech giants estimated to spend at least $630 billion this year on AI Capital Expenditure Spending ($ billions) 250 200 150 100 50 0 Google Microsoft Meta Amazon 2025 actual spending 2026 forecasts Source: M&G Wealth Investments, Reuters, company sta
Slide 5: AI is still the theme, but winners are changing
AI is still the theme, but winners are changing Bottlenecks are appearing in AI infrastructure while software is under threat from AI Performance of AI Infrastructure vs MSCI World vs US Software 20% 10% 0% -10% -20% -30% -40% IShares AI infrastructure MSCI World IShares Expanded US Software Source:
Slide 6: Geopolitical Risk rose in March
Geopolitical Risk rose in March Due to the conflict in Iran Geopolitical Risk Index 600 9/11 500 400 Gulf War Iraq War Russia/Ukraine War Iran War 300 200 100 0 1985 1988 1989 1992 1995 1998 2001 2004 2007 2008 2011 2014 2017 2020 2023 2026 1986 1987 1990 1991 1993 1994 1996 1997 1999 2000 2002 2003
Slide 7: Conflict in the Middle East
Conflict in the Middle East Why did it start? Early 2026 • Long running tensions over Iran’s nuclear programme, ballistic missiles and The US deployed a naval armada to the Persian Gulf amid regional military reach rising tensions 19th February Trump issued a 10–15-day ultimatum demanding a new nucl
Slide 8: Impact to Oil
Impact to Oil The Strait of Hormuz is the single most important energy transit route in the world, with limited alternatives. 20% of global oil production goes through the Strait. Brent Crude Oil Price (USD/Barrel) Strait of Hormuz – Where does the Oil go? 140 10% 120 100 14% China 38% India 80 Sout
Slide 9: Global Growth Forecasts have been revised down
Global Growth Forecasts have been revised down IMF Forecasts IMF Real GDP Growth Forecasts for 2026 6% 5% 4% 3% 2% 1% 0% World US Euro Area Developing Asia Jan-26 Apr-26 Source: M&G Wealth Investments, IMF Outlook, April 2026. For adviser use only - Not for use with retail customers
Slide 10: Interest rate Expectations
Interest rate Expectations Less interes rate cuts are now expected Current Interest Rates and Market Expectation of Interest Rates at end of 2026 5.00% 4.50% 4.00% 3.50% 3.00% 2.50% 2.00% 1.50% 1.00% 0.50% 0.00% UK US Euro area Japan Current Interest Rate End of 2026 (estimated on 17th December 2025
Slide 11: Global Equity Valuations
Global Equity Valuations Markets look cheaper than at the start of the year Forward Price to Earnings Multiples of Different Markets 30 25 20 15 10 5 0 UK US Europe ex UK Emerging Markets World End of December 2025 End of March 2026 Source: M&G Wealth Investments, Refinitiv. MSCI UK index represents
Slide 12: Earnings
Earnings Earnings Growth looks strong for 2026 Earnings growth (Year-on-Year, %) 40% 35% 30% 25% 20% 15% 10% 5% 0% S&P 500 MSCI Europe MSCI Asia -5% 2024 2025 2026 Source: M&G Wealth Investments, Refintiv, 31st March 2026. For adviser use only - Not for use with retail customers
Slide 13: Performance
Performance C
Slide 14: Asset Class returns so far this year
Asset Class returns so far this year Decent returns despite the volatility in markets Total Return - GBP (%) Infrastructure Asia Equities Japan Equities REITs EM Equities World equities UK Equities US Equities Europe ex UK Equities Global High Yield Bonds EM Government Bonds (USD) US Treasuries US I
Slide 15: Iran Conflict until the Ceasefire on the 8th April
Iran Conflict until the Ceasefire on the 8 th April Low duration bonds and Infrastructure equities performed well Total Return - GBP (%) Global High Yield Bonds Infrastructure European IG US Equities US IG US Treasuries Sterling IG EM Government Bonds (USD) Index Linked Gilts World equities UK Gilts
Slide 16: Model Performance Summary
Model Performance Summary Views within portfolios worked well over the past year Performance (to 30th April 2026) 3 months (%) 6 months (%) 1 year (%) 3 years (ann.) (%) 5 years (ann.) (%) 10 years (ann.) (%) Fund Benchmark MPS Rel MPS Rel MPS Rel MPS Rel MPS Rel MPS Rel MPS Passive 1 IA Mixed Inves
Slide 17: Diversification
Diversification C
Slide 18: Concentration Risk
Concentration Risk The US Allocation within Global Equities has Increased since 2000 Market Value of Countries based on MSCI Indices (%) 100 90 80 70 60 50 40 30 20 10 0 08/2000 04/2001 08/2002 12/2003 08/2004 12/2005 08/2006 12/2007 04/2009 12/2009 04/2011 12/2011 04/2013 08/2014 04/2015 08/2016 04
Slide 19: Concentration Risk
Concentration Risk Information Technology and Communication Sectors represent 43% of the index Allocation to Sectors within S&P 500 35% 30% 25% 20% 15% 10% 5% 0% Info Tech Financials Cons Disc Healthcare Industrials Cons Staples Energy Comms Utilities Real Estate Materials Services 31/03/2006 31/03/
Slide 20: Equity and Bond correlation over 20 Years
Equity and Bond correlation over 20 Years Correlations have been mostly positive since 2020 Weekly Correlation between Global equities and Global Bonds 0.8 0.6 0.4 0.2 0 -0.2 -0.4 -0.6 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 Source: M&
Slide 21: Spotlight on Infrastructure
Spotlight on Infrastructure Infrastructure can benefit portfolios in an inflationary environment and provide growth Total Returns in 2022 in GBP Expected Infrastructure Spending by 2040 10% 8% 6% 4% 2% 0% -2% Energy and Power $23trn Digital $19trn -4% -6% -8% Waste and Agriculture Water $6trn $5trn
Slide 22: 'Safe Haven' assets
‘Safe Haven’ assets ‘Safe Haven’ assets historical correlation with The Triple Decline following ‘Liberation Day’ in global equities during market stress 2025 4% Correlation Gold USD US Treasury 2% Time Period 0% 5Y 0.17 -0.39 0.17 -2% -4% 20Y 0.12 -0.39 -0.26 -6% -8% GFC 0.1 -0.49 -0.35 -10% -12% C
Slide 23: Questions and Feedback
Questions and Feedback C
Slide 24: Issued by M&G Wealth Investments LLP
Issued by M&G Wealth Investments LLP, which is authorised and regulated by the Financial Conduct Authority. Registered in England and Wales with company number OC305442. Registered office: 10 Fenchurch Avenue, London EC3M 5AG. M&G Wealth Investments LLP is a subsidiary of M&G plc, incorporated and r