M&G Global Dividend FundM&G Global Dividend Fund

More than just dividends. Global reach and the potential for a growing income.

Over the long term, dividends can make significant contributions to the total return of a stockmarket investment. Although income investing via equities is well established in the UK, investing globally can present greater opportunities to find stocks that are growing their dividends.

The M&G Global Dividend Fund, which was launched in July 2008, aims to generate a regular and rising income from a portfolio of global shares. Manager Stuart Rhodes has proven skills in analysing companies from around the world and uses his experience to help achieve the fund’s aim.

Investment strategy

Fund objective and policy

About the fund manager

Why choose the M&G Global Dividend Fund?

How has the M&G Global Dividend Fund performed?


Investment strategy

By following the M&G Global Equity team’s well-established stock-picking process, Stuart focuses on companies committed to the payment and growth of dividends for its shareholders. He selects the most attractive companies from three main areas – those that have undervalued business franchises, those undergoing internal change, or those benefiting from external change:
Dividend criteria

The combination of investments in these three different areas enables the fund manager to increase the diversification of the portfolio, thereby lowering risk, while offering the potential to maximise long-term returns. However, stocks in each of these areas must meet additional income criteria: a company should offer sufficient yield, and ideally also sustain its dividend and increase it over time.

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Fund objective & policy

The Fund aims to deliver a dividend yield above the market average, by investing mainly in a range of global equities. The Fund aims to grow distributions over the long term whilst also maximising total return (the combination of income and growth of capital). The Fund aims to deliver a dividend yield above the market average, whilst aiming to increase annual distributions over the long term, by investing in a range of global equities. The Fund’s exposure to global equities may be gained through the use of derivatives. The Fund may invest across a wide range of geographies, sectors and market capitalisations. The Fund may also invest in other assets including collective investment schemes, other transferable securities, cash and near cash, deposits, warrants, money market instruments and derivatives.

Products available: ISA, OEIC & Savings Plan

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About the fund manager

Stuart Rhodes

Stuart Rhodes joined M&G’s analyst team in January 2004. He has worked as an analyst on the global team, responsible for analysing companies across the world. In March 2007 he was appointed deputy fund manager of the M&G American Fund and in July 2008 he was appointed manager of the M&G Global Dividend Fund upon its launch. Stuart graduated from Bath University with a degree in Business Administration in 2003. He is also a CFA charterholder.

In addition to the fund data that can be found by accessing the menu to the left of this page you may also wish to read the fund Key Features (3 MB) which contains further fund information.

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Why choose the M&G Global Dividend Fund?

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How has the M&G Global Dividend Fund performed?

M&G Global Dividend Fund - Long-term performance graph

 Single year performance (5 years ending July 2010)
 From
 To
 31.07.09
 30.07.10
 31.07.08
 31.07.09
 31.07.07
 31.07.08
 31.07.06
 31.07.07
 29.07.05
 31..07.06
 M&G Global Dividend Fund +23.1% -1.1% N/A N/A N/A
 IMA Global Growth Sector +16.5% -8.8% -9.3% +14.3% +10.7%

Please remember that you should not base decisions on past performance, prices and the level of income may fluctuate and you may not get back your original investment. Overseas investments may be affected by currency exchange rates.

Source of all performance figures: Morningstar Inc., and M&G Statistics, bid to bid, net income reinvested, Sterling Class A Shares as at 30 July 2010.

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Next steps
The M&G ISA
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Download literature
ISA application form (including Key Features) (3 MB)
ISA Transfer form (including Key Features) (3 MB)
OEIC/Unit trust application form (including Key Features) (3 MB)
Savings plan application form (including Key Features) (3 MB)

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Issued by M&G Securities Limited and M&G Financial Services Limited which are subsidiaries of M&G Limited. M&G Limited is incorporated and registered in England. Registered Office: Laurence Pountney Hill, London, EC4R 0HH. Registered in England No. 1048359. Registered for VAT, number GB235 3237 81. Both M&G Securities Limited and M&G Financial Services Limited are authorised and regulated by the Financial Services Authority and provide ISAs and other investments. M&G Securities Limited is registered on the FSA's register, No. 122057 (www.fsa.gov.uk/register/). Registered Office Laurence Pountney Hill, London, EC4R 0HH. Registered in England No. 90776. M&G Financial Services Limited is registered on the FSA's register, No. 122058 (www.fsa.gov.uk/register/). Registered Office Laurence Pountney Hill, London, EC4R 0HH. Registered in England No. 923891. Both companies are registered for VAT, number GB235 3237 81.