M&G UK Select I

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

  • 1569.30p
    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.

  • 1915.19p
    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!

  • 0.70%
    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).

  • 0.70%
    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.

  • 2.20%
    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 15 January 2021

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 August, 2012
Size £569m
Yield 2.20%
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 0.70%
Ongoing charges figure 0.70%

Allocation

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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.

Manager research

Average monthly relative returns

  • 16/17 0.00%
  • 17/18 0.00%
  • 18/19 0.00%
  • 19/20 0.00%
  • 20/21 1.18%

Bestinvest MRI

  • 3 years 0.00%
  • 5 years 0.00%
  • Career 0.65%
  • 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.

Rory Alexander

Alexander joined M&G’s Equity Research team in 2008 as an analyst covering global transport. Over time, he added support services, media and consumer staples to his sector responsibilities, until June 2015 when he became an embedded research analyst with the UK Equities team. Since 2019, he has been managing M&G’s UK Select strategy and has been the deputy manager of the Smaller Companies strategy. Prior to joining M&G, Alexander worked for St James's Place Partnership. He graduated from Bath University in 2008 with a BSc (Hons) in economics.

Track record

The track record of Rory Alexander in managing mutual funds in this sector is still too short for us to draw any meaningful conclusions and so our assessment is based largely on qualitative aspects.

Periods of worst performance

Absolute -21.00% (December 2019 - March 2020)
Relative -4.00% (May 2019 - September 2019)

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 July 2020

8% Astrazeneca Plc
5% Unilever
4.6% Reckitt Benckiser Group Plc
3.2% Experian Plc
3% London Stock Exchange Group
2.6% Smith & Nephew Plc
2.3% Games Workshop Group
2.2% British American Tobacco
2.1% Intertek Group
2.1% Weir Group Plc (The)
Source: Trustnet

Sector breakdown

Consumer Goods 22.00%
Industrials 20.00%
Financials 19.00%
Health Care 16.00%
Consumer Services 8.00%
Oil & Gas 6.00%
Money Market 5.00%
Technology 4.00%
Basic Materials 1.00%

Portfolio

A diversified portfolio of around 60 stocks.

Key Investor Information - Income

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Key Investor Information - Accumulation

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