The M&G (Lux) Global Dividend Fund is designed for investors seeking global equity exposure with a focus on dividend growth. The fund aims to deliver combined income and capital growth higher than the global stock market over any five-year period while increasing the income stream annually.
The investment philosophy revolves around dividend growth as a strategy for long-term success in the stock market, emphasising dividends as indicators of corporate health, commitment to shareholder value, and financial strength.
Why this fund?
A tried and tested dividend strategy seeking income and growth.
Dividend growth
A relentless focus on dividend growth, not high yield, in the belief that rising dividends will put upward pressure on the share price.
Flexibility
A balanced approach which picks stocks from three distinct categories to cope with different market conditions | Quality (defensives) | Assets (cyclicals) | Rapid growth (premium growth).
Consistency
Consistent growth in dividend income since launch of strategy. Distribution has increased every year since launch of the Strategy in 2008 (including the financial crisis and COVID).
Stuart Rhodes has steered this strategy since 2008, with a clear vision and a distinctive investment approach. In this video, he reveals the fund’s enduring edge, highlights where he sees the most compelling opportunities for dividend growth and value, and shares his outlook on the global dividend landscape.
An established strategy with a focus on dividend growth
Essentials for the long haul
“…some people dream of winning Oscars, some people dream of Wimbledon titles or saving the planet ….I dream of compounding income distribution streams!” Stuart Rhodes, Director of Global Equities, Fund Manager
Watch this video to learn more about how Stuart Rhodes, has navigated the ups and downs of global markets since the strategy's launch in 2008*. Stuart explains how important it is not to be swayed by the noise of sometimes deafening market turbulence.
* The M&G (Lux) Global Dividend Fund, a sub-fund of M&G (Lux) Investment Funds 1, an open-ended, Luxembourg-domiciled SICAV managed by M&G Luxembourg SA, was launched on the 18th of September 2018. Any information prior to 20 September 2018 refers to the M&G Global Dividend Fund (a UK-authorised OEIC), which merged into this fund on 7 December 2018.
Investment policy:
The fund has two aims:
- A combination of capital growth and income to deliver a return that is higher than that of the global stock market over any five-year period while applying ESG Criteria; and;
- An income distribution that increases every year in US dollar terms.
At least 80% of the Fund is invested in the shares of companies, across any sector and of any size, from anywhere in the world, including emerging markets. The Fund is concentrated and usually holds shares in fewer than 50 companies. The Fund may invest in China A Shares via the Shanghai-Hong Kong Stock Connect and the Shenzhen-Hong Kong Stock Connect. The Fund invests in securities that meet the ESG Criteria, applying an Exclusionary Approach and Positive ESG Tilt as described in the precontractual annex. The fund’s recommended holding period is 5 years.
The main risks associated with this fund:
- The value and income from the fund's assets will go down as well as up. This will cause the value of your investment to fall as well as rise. There is no guarantee that the fund will achieve its objective and you may get back less than you originally invested.
- The fund holds a small number of investments, and therefore a fall in the value of a single investment may have a greater impact than if it held a larger number of investments.
- Investing in emerging markets involves a greater risk of loss due to greater political, tax, economic, foreign exchange, liquidity and regulatory risks, among other factors. There may be difficulties in buying, selling, safekeeping or valuing investments in such countries.
- The fund can be exposed to different currencies. Movements in currency exchange rates may adversely affect the value of your investment.
- ESG information from third-party data providers may be incomplete, inaccurate or unavailable. There is a risk that the investment manager may incorrectly assess a security or issuer, resulting in the incorrect inclusion or exclusion of a security in the portfolio of the fund..
Please note, investing in this fund means acquiring units or shares in a fund, and not in a given underlying asset such as building or shares of a company, as these are only the underlying assets owned by the fund.
Further details of the risks that apply to the fund can be found in the fund's Prospectus.
Sustainability information:
The Fund promotes Environmental/Social (E/S) characteristics and while it does not have as its objective a sustainable investment, it will have a minimum proportion of 20% of sustainable investments.
The Fund’s sustainability information are available to investors on the Fund page of the M&G website.
The team
The M&G (Lux) Global Dividend Fund is managed as part of the Global Equity team, an experienced team managing a range of investment strategies across a variety of regions and investment styles. The fund managers and analysts share a common philosophy of active investing with a long-term investment view, with fundamental analysis and valuation as core components of each investment strategy. The Global Equity team also draws on the expertise of other teams at M&G, including the sector analysts in the Equity Research team.
Stuart Rhodes
Director of Global Equities, Fund Manager
Kathryn Leonard
Co-Deputy Fund Manager
John Weavers
Co-Deputy Fund Manager
Kotaro Miyata
Investment specialist
