it has a defensive feel that aims to deliver consistent returns rather than lumpy / more volatile returns
For new investors choosing the right sector or country can be daunting. Often they are drawn to the best performers, and those being advertised. This strategy could work but the reverse is also true with investors being disappointed because they haven’t fully understood the investment strategy.
We have reviewed several Global Growth and Income Funds. Some have a heavy bias to the US, some are more globally diversified and some like Baillie Gifford Global Discovery and Scottish Mortgage are more suited to higher risk investors.
One fund which has a loyal fan base and has grown to £9 billion of assets since its launch in 2008 is the M&G Global Dividend Fund. The principal driver behind the fund is to deliver capital growth and income by focusing on dividend income.
Against the sector it has outperformed the index since launch but the performance over 5 and 3 years is close to the index with slightly greater volatility. There is therefore an argument that investors would be better choosing the index fund however there is a place for this fund with investors either as a stand-alone fund or as a blend with other funds. The index pays a yield of around 2.51% and the M&G Fund 3.51%.
In our discussion with the manager we will share some of his thoughts and why investors may consider this fund as part of their portfolios.