Marketing communication. For Investment Professionals only

M&G (Lux) Global Dividend Fund

Investing in dividend growth
Stuart Rhodes, Fund Manager

“The case for global equity income investing is compelling. Companies around the world that grow their dividends over the long term have generally outperformed in the stockmarket.”

Fund philosophy

  • A core equity fund investing in 40-50 companies, across any sector and of any size from anywhere in the world, including emerging markets, that we believe can increase dividends sustainably over the long term.
  • The fund manager invests in dividend growers from the three categories below, which display different risk/reward characteristics, to help the fund cope with different market conditions.
  • Valuation is central to the investment process, to ensure the fund is focused on good investments, not just good companies.

Source: M&G, 2022. *Internal guidelines, subject to change.

Fund's key selling points

  • Focus on dividend growth not dividend yield.
  • A global strategy with a long history – originally launched in 2008.
  • Diversified approach with three potential sources of dividend growth (quality, assets, rapid growth).

The benefit of investing in dividend growth

  • Rising dividends exert upward pressure on the share price.
  • The multiplier effect of compounding is likely to amplify total return (income and capital growth) over the long term, as rising income is reinvested in rising capital.
  • A high dividend yield is not an automatic signal of value if the dividend stream, and therefore the capital, is not growing.

The power of long-term compounding

Source: M&G. Illustrative figures only.

Fund Facts

31 July 2022 €3.059,72 million
Fund launch date 18 September 2018
Benchmark* MSCI ACWI Net Return Index
Sector Morningstar Global Equity Income sector
EUR A share class
ISIN (Acc) LU1670710075
ISIN (Dist) LU1670710158
Initial charge Max. 4,00%
AMC 1,75%
Ongoing charge** 1,94%

Source of fund facts: M&G as at 31.07.22.

*The benchmark is a comparator against which the fund's performance can be measured. It is a net return index which includes dividends after the deduction of withholding taxes. The index has been chosen as the fund’s benchmark as it best reflects the scope of the fund’s investment policy. The benchmark is used solely to measure the fund’s performance and does not constrain the fund's portfolio construction. The fund is actively managed. The investment manager has complete freedom in choosing which investments to buy, hold and sell in the fund. The fund’s holdings may deviate significantly from the benchmark’s constituents.

**The ongoing charge is based on expenses as at 31.03.22.

This is a marketing communication. Please refer to the prospectus and to the KIID before making any final investment decision.

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.

The fund can be exposed to different currencies. Movements in currency exchange rates may adversely affect the value of your investment.

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.

Further details of the risks that apply to the fund can be found in the fund's Prospectus.

The fund invests mainly in company shares and is therefore likely to experience larger price fluctuations than funds that invest in bonds and/or cash.

Investing in this fund means acquiring units or shares in a fund, and not in a given underlying asset such as a building or shares of a company, as these are only the underlying assets owned by the fund.

For an explanation of the terms used in this document, please refer to the glossary on our website here

For Investment Professionals only. Not for onward distribution. No other persons should rely on any information contained within.

The Instrument of Incorporation, Prospectus, Key Investor Information Document, annual or interim Investment Report and Financial Statements, are available in English, French or Dutch, free of charge from www.mandg.com/investments/be.

Before subscribing investors should read the Prospectus, which include a description of the investment risks relating to these funds. Please read the KIID before making a decision to invest. The information contained herein is not a substitute for independent investment advice.

M&G Luxembourg S.A. may terminate arrangements for marketing under the new Cross-Border Distribution Directive denotification process.

Complaints handling information is available in English from : www.mandg.com/investments/professional-investor/en-be/complaints-dealing-process

This financial promotion is issued by M&G Luxembourg S.A. Registered Office: 16, boulevard Royal, L‑2449, Luxembourg.