M&G High Income - Income Shares

Invests predominantly in large cap, high yielding UK equities.

  • 53.00p
    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.

  • -
    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?

  • 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!

  • 1.00%
    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).

  • 1.00%
    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.

  • 11.90%

    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…

This trust invests principally in high yielding large cap UK equities, though the portfolio will also include smaller stocks and some fixed interest securities. The Income units are entitled to 70p per share on winding-up (on 17th March 2017) plus any balance on the revenue reserve - their value is thus largely dependent on the company's future dividend stream.

Fund summary

Sector UK Equity and Bond Income
Launched March, 1997
Size £2,015m
Yield 11.90%
Charging basis
Dividends paid Feb, May, Aug, Nov


Standard initial charge 0.00%
Initial charge via Bestinvest 0.00%
Additional bid/offer spread 0.00%
Annual management charge 1.00%
Ongoing charges figure 1.00%


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Investment process

The company's investment policy is to achieve an above average and increasing income over its 20 year life while at the same time seeking to achieve capital growth. The company's portfolio comprises mainly high yielding shares of UK companies listed on the London Stock Exchange. Most of the portfolio will consist of FTSE 100 stocks, though typically 10-25% will be invested in stocks outside this index and around 15% will be invested in fixed interest securities. The fixed interest allocation may include both gilts, investment grade corporate bonds (including convertibles) and preference shares.

Manager research

Average monthly relative returns

  • 15/16 0.00%
  • 16/17 0.38%
  • 17/18 -0.05%
  • 18/19 0.60%
  • 19/20 0.82%

Bestinvest MRI

  • 3 years 0.46%
  • 5 years 0.00%
  • Career 0.31%
  • 3 years 50.00%
  • 5 years 0.00%
  • Career 85.30%

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

Richard Hughes

Hughes joined M&G in 1986 and is a UK equity income fund manager. He previously worked for Derbyshire County Council for eight years where he was manager of their pension fund. He graduated from Sheffield University with an Honours degree in Accounting and Economics and is an associate of UKSIP.

Track record

Richard Hughes has 4.6 years experience of managing mutual funds in this sector. Over this period the average monthly return relative to the benchmark index has been +0.31%. During the worst period of relative performance (from February 2001 - November 2001) there was a decline of 14% relative to the index. The worst absolute loss has been 47%. Statistically, we estimate the probability that this fund manager is adding value, rather than being lucky, is 85%.

Periods of worst performance

Absolute -47.00% (December 2000 - March 2003)
Relative -14.00% (February 2001 - November 2001)

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 January 2017

5.15% Royal Dutch Shell
4.5% Hsbc Hldgs
3.88% British American Tobacco
3.46% Glaxosmithkline
2.85% Astrazeneca Plc
2.72% Bp
2.29% Rio Tinto
2.15% Vodafone Group
2.08% Sage Group
1.92% Aviva
Source: Trustnet

Sector breakdown

Others 29.00%
Financials 17.00%
Consumer Goods 10.00%
Oil & Gas 8.00%
Health Care 6.00%
Consumer Services 6.00%
Industrials 5.00%
Basic Materials 5.00%
Utilities 4.00%
Telecommunications 4.00%


The equities portfolio will typically comprise 60-120 holdings.


Maximum 15% in any one stock (typically less than 10%). Sector weightings +/- 10% relative to the FTSE All Share index. Max 30% in fixed interest.

Key Investor Information