M&G (Lux) Global Dividend Fund - Highlights of 2021 and Outlook for 2022

13 min read 27 Jan 22

  • Global dividends recovered from the worst dividend environment since the Second World War, with consensus forecasts of a 15% increase in 2021. Dividends are expected to rise again in 2022, by 5%, according to Bloomberg estimates.
  • The fund generated a positive return in 2021 but underperformed the MSCI ACWI Net Return Index. Methanex led the detractors after the methanol producer gave back some of its gains from the value rally in the fourth quarter of 2020. Keyera added the most value in a standout energy sector.
  • We made 15 new purchases and 11 complete sales – a level of turnover consistent with our typical time horizon of three to five years.
  • We saw dividend growth across the portfolio, with the majority of holdings reporting increases in the typical 5-15% range, up from 0-5% in 2020. Lundin Mining was the most generous, with two dividend increases of 50% during the year. Methanex and Trinseo resumed dividend growth after reducing their payments in 2020.
By M&G Investments

The value of investments will fluctuate, which will cause prices to fall as well as rise and you may not get back the original amount you invested. Past performance is not a guide to future performance.

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