fund
M&G Global Dividend I
Worldwide equity fund targeting an income yield above that of the FTSE World index.
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271.65p
Price (Inc)
These are the shares in the fund that pay out an income to clients. The income is made up of the total dividends – the money a company can pay out to its investors – from the companies in the fund.
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411.35p
Price (Acc)
These are the shares in the fund that don’t pay out an income to clients. Any dividends – the money a company can pay out to its investors – are reinvested into companies in the fund. Despite no income, the shares should be worth more over time. Good incentive, eh?
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1.25% 0.00%
Initial chargeSome funds charge you when you first invest, which is aptly known as the initial charge. They’re usually between 3-5% but at Bestinvest, we usually don’t charge you a penny!
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0.75%
Annual management charge
This is how much the fund management company charges to run the fund. It’s like paying a babysitter, dog sitter or house sitter (that makes well-informed, heavily researched changes to improve your baby/dog/house when needed).
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0.91%
Ongoing charges
This stands for Ongoing Charges Figure. It’s the cost of running a fund and includes admin fees, manager fees, administration costs, etc.
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2.90%
Yield
How much the fund is currently paying out in income to investors. It’s NOT to be confused with the overall growth of a fund – a very different thing indeed. It’s also NOT a guarantee of future pay-outs, just a snapshot. This is more what it’s not than what it is…
The fund aims to deliver a dividend yield above the market average as well as providing income and capital growth, by investing worldwide in large and mid cap equities. Manager Stuart Rhodes takes a mainly bottom-up approach to stock selection and favours dividend growth over current yield – he has the flexibility to buy lower yielding companies provided the board is committed to raising dividends.
Fund summary
| Sector | Global |
| Structure | OEIC |
| Launched | July, 2008 |
| Size | £2,330m |
| Yield | 2.90% |
| Charging basis | Capital |
| Dividends paid | Feb, May, Aug & Nov |
Charges
| Standard initial charge | 1.25% |
| Initial charge via Bestinvest | 0.00% |
| Additional bid/offer spread | 0.00% |
| Annual management charge | 0.75% |
| Ongoing charges figure | 0.91% |
Allocation
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Investment process
The investment universe is around 4,000 companies worldwide that are above $1bn in size and pay dividends. The manager first applies a quantitative screen to the universe, using HOLT (a system that analyses a company's record of creating shareholder value) cash flow analysis to filter on return on capital and dividend growth to filter on income. He then undertakes qualitative analysis in conjunction with the rest of the M&G Income Team. Meeting company management is a key part of this – the team looks to ensure executives are creating value for shareholders and are committed to a progressive dividend policy. The final portfolio comprises three types of company: - Quality - larger, established companies paying consistent, rising dividends. These typically form 50-60% of the fund; - Asset-backed cyclical companies (20-30%); - Rapid growth companies (10-20%). There is no minimum yield and the portfolio may include lower yielding stocks that are expected to grow their dividends.
Manager research
Average monthly relative returns
- 16/17 -0.12%
- 17/18 0.02%
- 18/19 -0.21%
- 19/20 -0.82%
- 20/21 0.15%
Bestinvest MRI
- 3 years -0.29%
- 5 years -0.20%
- Career -0.08%
- 3 years 26.80%
- 5 years 32.30%
- Career 57.10%
Performance figures are based on the average of monthly percentage returns relative to the benchmark index.
Stuart Rhodes
Rhodes joined M&G in January 2004 as an analyst. In March 2007 he was appointed the deputy fund manager for M&G American Fund. In July 2008 he became the fund manager for M&G Global Dividend fund. He is now head of the Income team within M&G Equities. Rhodes has an honours degree from Bath University and is a CFA charterholder.
Track record
Stuart Rhodes has 12.8 years experience of managing mutual funds in this sector. Over this period the average monthly return relative to the benchmark index has been -0.08%. During the worst period of relative performance (from October 2011 - August 2020) there was a decline of 31% relative to the index. The worst absolute loss has been 29%.
Periods of worst performance
| Absolute | -29.00% (August 2008 - February 2009) |
| Relative | -31.00% (October 2011 - August 2020) |
About the MRI
Our unique indicator: the Bestinvest Manager Record Index (MRI) measures the likelihood that the fund manager is adding value through their decisions. It is based on their performance record over the course of their career, adjusted for the amount of risk taken. MRI is an important contributor to our fund rating system but it is also vital to take account of qualitative factors. It is also very important to select funds to form a cohesive portfolio with an appropriate overall risk level.
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Top 10 holdings
Data accurate as at 31 July 2020
| 7.6% | Gibson Energy Inc |
| 6.6% | Imperial Brands Plc |
| 4.4% | Methanex Corp |
| 4.3% | Microsoft Corp |
| 4.2% | Roche Hldg Ag |
| 4% | Standard Life Aberdeen |
| 4% | Keyera Corp |
| 3.8% | Amcor Plc |
| 3.5% | Bristol Myers Squibb Sa |
| 3.4% | Visa Inc |
| Source: Trustnet |
Sector breakdown
| Information Technology | 18.00% |
| Consumer Staples | 18.00% |
| Health Care | 16.00% |
| Materials | 14.00% |
| Financials | 13.00% |
| Energy | 12.00% |
| Consumer Discretionary | 6.00% |
| Utilities | 4.00% |
| Industrials | 1.00% |
Portfolio
Around 50 stocks. Currency hedging will not be used.
Constraints
Maximum position size 10% (typically 1-3%). There are no restrictions on regional, sector or capitalisation exposure, but the manager aims to create a diversified portfolio.