x Dividend Fund

Dividend Fund


Price (18.01.2021)

% Price Change

Objective and investment policy


The fund has three aims:
- To provide an annual yield higher than that of the FTSE All-Share Index;
- To provide an income stream that increases every year;
- To provide a higher total return (the combination of capital growth and income), net of the Ongoing Charge Figure, than that of the FTSE All-Share Index over any five-year period.

Investment policy and strategy

Investment policy

At least 70% of the Fund is invested in equity securities and equity-related securities of companies across any sector and market capitalisation, that are incorporated, domiciled, listed or do most of their business in the United Kingdom.

The Fund may also invest in other transferable securities, including the shares of non-UK companies, cash and near cash directly or via collective investment schemes (including funds managed by M&G).

Derivatives may be used for efficient portfolio management and hedging.

Investment approach

The Fund employs a disciplined approach to investment which concentrates on the analysis and selection of individual companies.

The Fund typically invests in a well-diversified portfolio of high-yielding UK stocks. The yield premium attached to the Fund generally means that there is a bias towards good value, out of favour stocks (i.e. those stocks which the fund manager considers to be undervalued by the market). The emphasis on yield helps to identify stocks that are relatively cheap and to avoid those that are expensive. From the universe of high yielding stocks, the fund manager identifies companies that are competitive, with a strong business franchise and that have attractive dividend growth prospects.

Benchmark: FTSE All-Share Index

The Fund is actively managed. The benchmark is a target which the Fund seeks to outperform. The index has been chosen as the Fund’s target benchmark as it best reflects the scope of the Fund’s investment policy. The target benchmark is used solely to measure the Fund’s performance and income objective and does not constrain the Fund's portfolio construction.

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 can be exposed to different currencies. Movements in currency exchange rates may adversely affect the value of your investment.

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.

The fund could lose money if a counterparty with which it does business becomes unwilling or unable to repay money owed to the fund.

Further details of the risks that apply to the fund can be found in the fund's Prospectus.

Other information

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.

The performance webpage for this fund is currently being reconfigured. In the interim, for performance information, please refer to the latest Fund Factsheet which can be found in the Literature section.

Fund Team

Stephanie Betts

Stephanie Betts - Investment specialist

Stephanie Betts joined M&G in January 2018 as Investment Specialist for the Income team focusing on M&G Pan European Dividend Fund, M&G European Select Fund, M&G Dividend Fund and M&G UK Select Fund. She joined from Citigroup (after an extended maternity leave) where she was managing the European equities desk selling to French and a selection of UK institutional accounts. Stephanie began her career as a securities regulation lawyer with Sullivan & Cromwell (New York) before transferring to Lehman Brothers in investment banking (New York), and equities sales (London). Thereafter, she joined JP Morgan and latterly Citigroup. Stephanie graduated from New York University School of Law with a Master’s Degree (LLM) in Corporate Taxation & Securities Regulations and holds an MBA in Corporate Taxation and Finance from the Institute of Political Sciences in Paris and a Law Degree in Corporate Law & Tax from the University of Paris II–Assas.

 Team member biography
Kotaro Miyata

Kotaro Miyata - Investment specialist

Kotaro Miyata is the investment specialist providing support for M&G's equity income fund range which includes the M&G Global Dividend Fund, as well as the M&G Global Listed Infrastructure Fund and the M&G (Lux) Global Listed Infrastructure Fund, which were launched in October 2017. Prior to joining M&G in 2006, he was a fund manager at Invesco Asset Management, where he was responsible for European and UK equities within the Global Equities team. Kotaro holds the Securities Institute Diploma and graduated from Oxford University in 1994 with a degree in classics.

 Team member biography


Rating is at a share class level

2 Star Rating

Ratings as at 30/06/2020. The Morningstar Overall Rating. Copyright © 2019 Morningstar UK Limited. All Rights Reserved. The Morningstar Analyst Rating™. © 2019 Morningstar. All Rights Reserved. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Ratings should not be taken as recommendation.

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Specifically, the information on these pages should not be used or relied upon by the public of Singapore or any other type of investor from any other jurisdiction.
The value of investments will fluctuate, which will cause fund prices to fall as well as rise and you may not get back the original amount you invested.