The 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 in sterling terms.
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).
Since its inception in 2008, Stuart Rhodes has steered the M&G Global Dividend Fund 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
This chart shows the rising income since the launch of the fund amounting to more than the original share price at launch. In other words, if you had bought a share for 100 pence when the fund was launched, your original capital outlay would have been returned via income by March 2025.
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 fund’s launch in 2008. Stuart explains how important it is not to be swayed by the noise of sometimes deafening market turbulence.
Investment policy:
The fund aims to provide:
- An income distribution that increases every year;
- A dividend yield above that available from the MSCI ACWI Index over any five year period; and
- A combination of capital growth and income, net of the Ongoing Charge Figure, that is higher than that of the MSCI ACWI Index over any five-year period.
At least 70% of the fund is invested in the shares of companies, across any sector and of any size, from anywhere in the world.
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.
- 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.
- In exceptional circumstances where assets cannot be fairly valued, or have to be sold at a large discount to raise cash, we may temporarily suspend the fund in the best interest of all investors.
Further details of the risks that apply to the fund can be found in the fund's Prospectus.
It is also important to note that:
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.
Ratings and awards
Ratings should not be taken as recommendation.
The team
The M&G 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
