M&G Index Tracker A

FTSE All-Share tracker which is no longer as competitive as it used to be.

  • 75.78p
    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.

  • 145.04p
    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!

  • 0.30%
    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).

  • 0.46%
    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.

  • 4.10%
    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 13 December 2019, fund data last updated 02 December 2009

The fund aims to provide capital growth from the UK stockmarket by tracking the returns of the FTSE All-Share Index and invests in the majority of stocks listed in the index - therefore it applies a near full "replication" strategy.

Fund summary

Sector UK All Companies
Structure OEIC
Launched February, 1998
Size £525m
Yield 4.10%
Charging basis
Dividends paid 31 Jan, 31 Jul

Charges

Standard initial charge 0.00%
Initial charge via Bestinvest 0.00%
Additional bid/offer spread 0.00%
Annual management charge 0.30%
Ongoing charges figure 0.46%

Allocation

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Investment process

This fund uses a combination of replication and some sampling techniques to track the FTSE All-Share Index. The approach is to replicate all the stocks within the FTSE All-Share Index so that each is represented at its appropriate weight. In this instance some 90% of the constituents of the FTSE All-Share Index is held within the fund. Quantitative techniques are then used within a computer model to identify the key drivers of the FTSE All-Share's performance, i.e. sector, size, yields etc. The manager then applies certain controls to the model in order to identify a portfolio of stocks that sufficiently matches these characteristics and thus avoids the necessity to purchase all constituent stocks. This thus avoids holding some of the less liquid or smallest companies listed in the index, which may be more difficult to trade - often a "basket" approach is adopted within the more niche industries.

At one time this was one of the cheapest FTSE All Share tracker funds. However, it has now been superseded by lower cost trackers. Consider Fidelity Moneybuilder UK Index, which has a much lower total expense ratio.

Manager research

Average monthly relative returns

  • 14/15 0.18%
  • 15/16 0.64%
  • 16/17 -0.33%
  • 17/18 -0.44%
  • 18/19 0.00%

Bestinvest MRI

  • 3 years 0.00%
  • 5 years 0.00%
  • Career -0.04%
  • 3 years 0.00%
  • 5 years 0.00%
  • Career 74.50%

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

Richard O’Connor

O’Connor, Fund Manager, joined M&G in July 2002. He joined the company from Goldman Sachs where he worked as a consultant to the fixed income derivatives department. Prior to this, O’Connor was a research analyst at Standard Corporate & Merchant Bank Asset Management (South Africa). O’Connor has an honours degree in Investment Management from Rand Afrikaans University and a Bachelor of Commerce from the University of Natal.

Track record

Richard O’connor has 7 years experience of managing mutual funds in this sector. Over this period the average monthly return relative to the benchmark index has been -0.04%. During the worst period of relative performance (from February 2009 - March 2012) there was a decline of 11% relative to the index. The worst absolute loss has been 30%.

Periods of worst performance

Absolute -30.00% (October 2007 - February 2009)
Relative -11.00% (February 2009 - March 2012)

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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Top 10 holdings

Data accurate as at 31 August 2019

8.1% Royal Dutch Shell
5.2% Hsbc Hldgs
4.3% Bp
4.2% Astrazeneca Plc
3.7% Glaxosmithkline
3.6% Diageo
2.9% British American Tobacco
2.5% Unilever
2% Rio Tinto
1.8% Vodafone Group
Source: Trustnet

Sector breakdown

Financials 24.00%
Consumer Goods 14.00%
Oil & Gas 13.00%
Consumer Services 12.00%
Industrials 12.00%
Health Care 9.00%
Basic Materials 7.00%
Utilities 3.00%
Telecommunications 3.00%
Money Market 2.00%

Portfolio

The fund holds over 600 constituents of the FTSE All Share Index.

Key Investor Information - Income

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Key Investor Information - Accumulation

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