For Investment Professionals only

M&G (Lux) North American Dividend Fund

The pursuit of rising dividends in the US market
John Weavers, Fund Manager

“The US offers a broad spectrum of companies which have delivered dividend growth across economic cycles and provides ample opportunities to create a diversified portfolio.”

Why dividends?

  • Consistent dividends provide an indication of a company’s good financial health.
  • Growing dividends reflect a company’s confidence in future growth.
  • Higher dividends typically lead to higher share prices.

There is no guarantee that securities in the portfolio will provide consistent or rising dividends.

Why dividends in the US?

  • The US has an established dividend culture with the longest dividend track records in the world.
  • The US offers an abundance of dividend growers across a variety of sectors.
  • The US typically offers opportunities for faster growth compared to the rest of the world.

At least 80% of the M&G (Lux) North American Dividend Fund is invested in the shares of companies, across any sector and of any size, that are based, or do most of their business, in the US and Canada. The fund is concentrated and usually holds shares in fewer than 50 companies.
 

M&G's differentiated approach

  • A diversified approach to dividend investing which seeks to cope with different market conditions.
  • Stock selection from three distinct categories: ‘quality’ (defensives), ‘assets’ (cyclicals) and ‘rapid growth’ (premium growth).
  • A conviction-driven portfolio of 40-50 dividend growers.
Three sources of dividends

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

Fund Facts

31 March 2022 €340,95 million
Fund launch date 9 November 2018
Benchmark* S&P 500 Net Total Return Index
Sector Morningstar US Large-Cap Blend Equity sector
EUR A share class
ISIN (Acc) LU1670627253
ISIN (Dist) LU1670627337
Initial charge Max. 5,00%
AMC 1,50%
Ongoing charge** 1,70%

Source of fund facts: M&G as at 31.03.22.

*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. For unhedged and currency hedged share classes, the benchmark is shown in the share class currency.

**The ongoing charge figure is based on estimated expenses for the year ending 30.09.21.

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.

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

 

Distribution of this document in or from Switzerland is not permissible with the exception of the distribution to Qualified Investors according to the Swiss Collective Investment Schemes Act ("Qualified Investors"). Supplied for the use by the initial recipient (provided it is a Qualified Investor) only.

The collective investment schemes referred to in this document (the "Schemes") are open-ended investment companies with variable capital, incorporated in Luxembourg. The Instrument of Incorporation, Prospectus, Key Investor Information Document, as well as the annual or interim Investment Report and Financial Statements can be obtained free of charge in English from M&G International Investments Switzerland AG, Talstrasse 66, 8001 Zurich or from Société Générale, Paris, Zurich Branch, Talacker 50, P.O. Box 5070, 8021 Zurich, which acts as the Swiss representative of the Schemes (the "Swiss Representative") and acts as their Swiss paying agent.

Before subscribing investors should read the Prospectus and Key Investor Information Document, which includes a description of the investment risks relating to these funds.

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 https://www.mandg.com/investments/professional-investor/en-ch/contact-us

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