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.
- The fund invests in securities that meet the ESG Criteria. Norms, sector and/or values-based exclusions apply to investments.
- 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.
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).
- ESG Criteria are applied when selecting stocks. The portfolio's ESG 'positive tilt' means it looks to have a better ESG rating than the fund's benchmark or is at least equivalent to an MSCI A rating.
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
| 30 November 2022 | EUR3.001,65 million |
|---|---|
| Fund launch date | 18 September 2018 |
| Benchmark* | MSCI ACWI Net Return Index |
| Sector | Morningstar Global Equity Income sector |
| SFDR classification | Article 8 |
| 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 30.11.22.
*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 benchmark is not an ESG benchmark and is not consistent with the ESG Criteria.
**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 KID 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.
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.
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 and Institutional Investors only. Not for onward distribution. No other persons should rely on any information contained within.
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, the Swiss Collective Investment Schemes Ordinance and the respective Circular issued by the Swiss supervisory authority ("Qualified Investors"). Supplied for the use by the initial recipient (provided it is a Qualified Investor) only.
In Spain the M&G Investment Funds are registered for public distribution under Art. 15 of Act 35/2003 on Collective Investment Schemes as follows: M&G (Lux) Investment Funds 1 reg. no 1551.The collective investment schemes referred to in this document (the "Schemes") are open-ended investment companies with variable capital, incorporated in Luxembourg.
In the Netherlands, all funds referred to are UCITS and registered with the Dutch regulator, the AFM. M&G Luxembourg S.A. is the manager of the UCITS referred to in this document. Registered Office: 16, boulevard Royal, L‑2449, Luxembourg.
The Portuguese Securities Market Commission (Comissão do Mercado de Valores Mobiliários, the “CMVM”) has received a passporting notification under Directive 2009/65/EC of the European Parliament and of the Council and the Commission Regulation (EU) 584/2010 enabling the fund to be distributed to the public in Portugal.
This information is not an offer or solicitation of an offer for the purchase of investment shares in one of the funds referred to herein. Purchases of a fund should be based on the current Prospectus. The Instrument of Incorporation, Prospectus, Key Information Document, annual or interim Investment Report and Financial Statements, are available free of charge, in English or your local language (unless specified below) in paper form, from one of the following – M&G Luxembourg S.A., German branch, mainBuilding, Taunusanlage 19, 60325 Frankfurt am Main; the Austrian paying agent: Société Générale Vienna Branch, Zweigniederlassung Wien Prinz Eugen-Strasse, 8-10/5/Top 11 A-1040 Wien, Austria; the Luxembourg paying agent: Société Générale Bank & Trust SA, Centre operational 28-32, place de la Gare L‑1616 Luxembourg; the Danish paying agent: Nordea Danmark, Filial af Nordea Bank Abp, Finland, Issuer Services, Postbox 850, Reg.no. 5528, DK-0900 Copenhagen C; Allfunds Bank, Calle Estafeta, No 6 Complejo Plaza de la Fuente, La Moraleja, 28109, Alcobendas, Madrid, Spain; M&G Luxembourg S.A. French branch, 8 rue Lamennais, Paris 75008; the French centralising agent of the fund: RBC Investors Services Bank France; or the Swedish paying agent: Nordea Bank AB (publ), Smålandsgatan 17, 105 71 Stockholm, Sweden. For Switzerland, please refer to by M&G International Investments Switzerland AG, Talstrasse 66, 8001 Zurich or 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.
For Italy, they can also be obtained on the website: www.mandgitalia.it. For the Netherlands, they are available online at www.mandg.com/investments/nl and for more information concerning the Key Information Document, please refer to www.afm.nl/ebi. For Ireland, they are available in English language and can also be obtained from the Irish facilities agent, Société Générale SA, Dublin Branch, 3rd Floor IFSC House – The IFSC Dublin 1, Ireland. For Germany and Austria, copies of the Instrument of incorporation, annual or interim Investment Report, Financial Statements and Prospectus are available in English and the Prospectus and Key Information Document/s are available in German.
Before subscribing investors should read the Key Information Document and the Prospectus Document, which includes a description of the investment risks relating to these funds. The value of the assets managed by the funds may greatly fluctuate as a result of the investment policy. The information contained herein is not a substitute for independent investment advice.
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This financial promotion is issued by M&G Luxembourg S.A. Registered Office: 16, boulevard Royal, L‑2449, Luxembourg.