M&G Global Dividend I

  • 257.48p
    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.

  • 385.83p
    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?

  • 1.25% 0.00%

    Initial charge

    Some 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!

  • 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).

  • 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.

  • 3.00%
    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…

Prices as at 14 January 2021, fund data last updated 02 December 2011

The fund aims to deliver a dividend yield above the market average, by investing mainly in a range of large and mid cap global equities. The fund aims to grow distributions over the long-term whilst also maximising total return. There is no minimum yield target for individual stocks – the manager has the flexibility to buy lower yielding companies provided the board is committed to raising dividends.

Fund summary

Sector Global
Structure OEIC
Launched
Size £2,574m
Yield 3.00%
Charging basis Capital
Dividends paid Feb, May, Aug & Nov

Charges

Standard initial charge 1.25%
Initial charge via Bestinvest 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.

This fund is one of a growing number that target income from overseas equities, though investors should note that the fund does not sit in the Global Equity Income sector and has typically yielded less than those that do. Though young for a fund manager, Stuart Rhodes made a strong start on the fund following its launch in 2008. However, it has grown substantially in size and returns have moderated in recent years.

Manager research

Average monthly relative returns

  • 16/17 0.00%
  • 17/18 0.00%
  • 18/19 0.00%
  • 19/20 0.00%
  • 20/21 0.00%

Bestinvest MRI

  • 3 years 0.00%
  • 5 years 0.00%
  • Career 0.00%
  • 3 years 0.00%
  • 5 years 0.00%
  • Career 0.00%

Performance figures are based on the average of monthly percentage returns relative to the benchmark index.

Track record

Periods of worst performance

Absolute 0.00% ()
Relative 0.00% ()

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.

Allocation

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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.

Key Investor Information - Income

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Key Investor Information - Accumulation

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