X-M&G UK Select A

Invests in a focused portfolio (c40 stocks) of UK equities of which at least 50% will be blue chip companies.

  • 0.00p
    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.

  • 0.00p
    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.

  • 0.00%
    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…

Fund data last updated 03 August 2007

This is a portfolio of 30-40 stocks with a bottom-up focus, the manager strives to generate a return greater than his peer group and by taking a lower level of risk. This is achieved through splitting the fund into two components: 60% represents a core portfolio consisting of large blue chip names, with the objective of reducing overall volatility. The remainder is invested into racier small and mid cap stocks which are intended to create excess returns versus the benchmark.

Fund summary

Sector UK All Companies
Structure X-OEIC
Launched February, 1972
Size £83m
Yield 0.00%
Charging basis
Dividends paid 28/2, 31/8.

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 Select Fund invests in a range of UK equities to maximise total return to investors. The manager seeks to identify companies that are capable of sustaining an above average Return on Equity (ROE) over long periods of time. The Fund is managed thematically using a top down approach to focus on three broad criteria for stock picking: Inevitables - a small universe of companies (15-20) with exceptionally strong brands and market share, candidates to buy and hold for long periods of time; Secular shifts - companies benefiting from macroeconomic events leading to an increased and superior ROE at the sector level; High multiple earnings growth - signs of accelerated earnings growth in companies that inherently trade at high earnings multiples.

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.

Allocation

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Top 10 holdings

Data accurate as at 31 January 2013

6% Glaxosmithkline
5.3% Hsbc Hldgs
5% Rio Tinto
4.9% Royal Dutch Shell
4.5% Bp
4.1% Smith & Nephew
3.8% Lloyds Banking Group Plc
3.5% Vodafone Group
3.2% Prudential
3.1% Rsa Insurance Group Plc
Source: Trustnet

Sector breakdown

Financials 19.00%
Oil & Gas 17.00%
Health Care 14.00%
Industrials 13.00%
Consumer Services 10.00%
Basic Materials 8.00%
Others 6.00%
Consumer Goods 6.00%
Telecommunications 5.00%
Money Market 2.00%

Portfolio

The Fund is a concentrated portfolio of approximately 40 stocks, with formal risk controls on capitalisation and sector weightings.

Key Investor Information - Income

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Key Investor Information - Accumulation

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