M&G Smaller Companies A

Aims for capital growth. Positional controls, albeit flexible, are applied.

  • 392.20p
    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.

  • 1043.00p
    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?

  • 4.00% 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!

  • 1.50%
    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).

  • 1.66%
    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.

  • 2.80%
    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 01 January 2002

Fund summary

Sector UK Smaller Companies
Structure OEIC
Launched September, 1967
Size £416m
Yield 2.80%
Charging basis Income
Dividends paid 28 Feb, 31 Aug

Charges

Standard initial charge 4.00%
Initial charge via Bestinvest 0.00%
Additional bid/offer spread 0.00%
Annual management charge 1.50%
Ongoing charges figure 1.66%

Allocation

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Investment process

The fund objective is to outperform the FTSE SmallCap (exc Investment Companies) index by 2-3% pa over rolling 3-year periods. This is to be achieved through investing in companies where "good management can have most impact on earnings". Cash position will be a maximum of 5% to maintain a focus on the fund objective. When purchasing stocks, companies are assessed primarily on market strength and valuation. Investments are constantly reviewed and any change that may affect the estimated valuation may lead to a sale of the holding.

Manager research

Average monthly relative returns

  • 14/15 0.00%
  • 15/16 -0.63%
  • 16/17 0.65%
  • 17/18 0.10%
  • 18/19 0.72%

Bestinvest MRI

  • 3 years 0.49%
  • 5 years 0.00%
  • Career 0.53%
  • 3 years 99.50%
  • 5 years 0.00%
  • Career 100.00%

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

Garfield Kiff

Kiff began his career with PricewaterhouseCoopers where he worked as a management consultant. He joined M&G in 2000 as an analyst on the smaller companies team. In 2002 he became a deputy manager of M&G Recovery and M&G Smaller Companies funds before taking over more mainstream funds. Kiff has a bachelor’s degree in Economics from the University of Liverpool and is a CFA charterholder.

Track record

Garfield Kiff has 8.8 years experience of managing mutual funds in this sector. Over this period the average monthly return relative to the benchmark index has been +0.53%. During the worst period of relative performance (from November 2015 - June 2016) there was a decline of 10% relative to the index. The worst absolute loss has been 23%. Statistically, we estimate the probability that this fund manager is adding value, rather than being lucky, is more than 99%.

Periods of worst performance

Absolute -23.00% (May 2007 - June 2016)
Relative -10.00% (November 2015 - June 2016)

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

3% Ultra Electronics Hldgs
2.7% 4imprint Group Plc
2.6% Emis Group Plc
2.2% Synthomer Plc
2.2% Tt Electronics
2.2% Fisher(James)& Sons Plc
2.2% Sabre Insurance Group Plc
2.1% Alpha Fx Group Plc
2.1% Sdl
2.1% Helical Plc
Source: Trustnet

Sector breakdown

Industrials 33.00%
Financials 19.00%
Technology 14.00%
Consumer Goods 10.00%
Consumer Services 9.00%
Money Market 7.00%
Health Care 5.00%
Basic Materials 3.00%
Oil & Gas 2.00%

Portfolio

Around 100 stocks are held.

Key Investor Information - Income

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Key Investor Information - Accumulation

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