M&G UK Select A

Mainstream UK Equity fund which hasn't added value in recent years.

  • 2952.25p Price (Inc)
  • 4813.14p Price (Acc)
  • 4.00% 0.00% Initial charge
  • 1.50% Annual management charge
  • 1.66% Ongoing charges
  • 3.20% Yield

Prices as at 06 December 2019, fund data last updated 25 July 2003

This fund targets above average capital returns from a portfolio of mainstream UK equities, that is, it mainly invests in large and medium size UK companies. Stock selection is focused upon finding undervalued quality growth companies (with fast earnings growth) with proven business models.

Fund summary

Sector UK All Companies
Structure OEIC
Launched December, 1968
Size £580m
Yield 3.20%
Charging basis
Dividends paid 31 Jan, 31 Jul

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%

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Investment process

The M&G UK Growth Fund is a mainstream UK equity fund managed to achieve consistent outperformance of the FTSE All-Share Index. The Fund does this by investing principally in UK companies with high growth potential with the sole objective of capital growth. The manager applies a bottom up (analyses companies in their own right) approach and typically takes a long term view with selected companies. The key focus of the investment process is companies with proven business models and as such this focus precludes many of the more speculative companies in the market. In particular, the manager invests in companies with strong barriers to entry, above average growth prospects and capable management. Once ‘quality’ companies are identified, the manager applies a number of valuation metrics to ascertain that stocks entering the portfolio are attractively valued.

This fund has benefited from a number of experienced fund managers during its past but has never really lived up to expectations. Performance has generally been inconsistent relative to its benchmark and more recently it has displayed higher volatility. The UK All Companies sector is very competitive, therefore those investors after a fund with a bias to large companies may wish to consider, JO Hambro CM UK Opportunities or Schroder UK Core (low fees) both highly rated by Bestinvest.

Manager research

Average monthly relative returns

  • 14/15 0.02%
  • 15/16 -0.79%
  • 16/17 0.28%
  • 17/18 -0.05%
  • 18/19 -0.24%

Bestinvest MRI

  • 3 years 0.00%
  • 5 years -0.16%
  • Career 0.08%
  • 3 years 68.10%
  • 5 years 35.60%
  • Career 99.00%

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

Mike Felton

After graduating from De Montfort University in Leicester with a degree in Economics, Felton joined Sun Alliance in 1989 as an investment analyst. Initially a sector analyst, he was appointed as a fund manager in 1994. Following the launch of the UK Prime fund, he relinquished his role on two other portfolios, notably Equity Income which he took over in March 1999. In January 2005 he joined M&G, taking up the newly created role of Head of UK Retail Equities.

Track record

Mike Felton has 18.4 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 June 2015 - June 2016) there was a decline of 13% relative to the index. The worst absolute loss has been 39%. Statistically, we estimate the probability that this fund manager is adding value, rather than being lucky, is 99%.

Periods of worst performance

Absolute -39.00% (August 2000 - January 2003)
Relative -13.00% (June 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.

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Top 10 holdings

Data accurate as at 31 August 2019

6.3% Astrazeneca Plc
4.6% Bp
4.6% Royal Dutch Shell
4.6% Unilever
3.8% Reckitt Benckiser Group Plc
3.2% British American Tobacco
3% London Stock Exchange Group
2.8% Smith & Nephew
2.8% Hsbc Hldgs
2.3% Smiths Group
Source: Trustnet

Sector breakdown

Financials 22.00%
Consumer Goods 16.00%
Health Care 14.00%
Industrials 14.00%
Oil & Gas 9.00%
Consumer Services 9.00%
Technology 8.00%
Money Market 4.00%
Basic Materials 4.00%

Portfolio

A diversified portfolio of around 60 stocks.

Key Investor Information - Income

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Key Investor Information - Accumulation

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