M&G Investment Funds (1) - M&G North American Dividend Fund Sterling I Acc

US Equities

Rated Fund 2019-20. Focuses on companies paying rising dividends      

M&G North American Dividend's steady performance makes it well suited to equity investors looking for a relatively smooth ride. Unlike many other funds in this asset group, it is not chock-full of the FAANGs (Facebook, Apple, Amazon, Netflix and Alphabet's Google) that have driven the US market higher.

John Weavers and his deputy Stuart Rhodes have run the fund since 2015. It has a relatively modest yield of 1.8%, in line with the 1.8% from the S&P 500 index, but the fund prioritises dividend growth rather than dividend yield. Most holdings posted dividend increases in the 5%-15% range in its latest financial year. Broadcom, the semiconductor company, led the pack with a 51% uplift, while energy firm EOG Resources raised its dividend by 31%, and UnitedHealth and Yum China reported 20% growth. Weavers believes rising dividends create upward pressure on the value of shares. He aims to select stocks with different drivers of dividend growth to enable the portfolio to cope in a variety of market conditions.

The fund usually holds 40-50 stocks. More than half is in mega-caps, but its largest overweight position relative to the S&P 500 index is in medium-sized companies. Having made fewer investments in the more cyclical areas of the market over the past year, Weavers is beginning to see "attractive opportunities emerge in long-term winners that have been unfairly hit on tweets and tensions around tariffs."

Narrative and ratings content all as of January 2020.  

See all Money Observer rated funds
Name
M&G Investment Funds (1) - M&G North American Dividend Fund Sterling I Acc
Manager
M&G Securities Ltd
Type
Open Ended Investment Company
ISIN
GB00B7565G26
Sector
North America
Launched
03/08/2012
OCF
0.7 %
Risk Rating
4
3 Year Sharpe
0.63
3 Year Alpha
0.01
Yield
1.2 %
Benchmark
S&P 500 TR EUR
The Fund aims to maximise total return (the combination of capital growth and income) whilst aiming to grow distributions over the long term.
Holding %
Microsoft Corp 6.87 %
Comcast Corp Class A 6.01 %
Mondelez International Inc Class A 4.20 %
Fidelity National Information Services Inc 4.14 %
Constellation Brands Inc A 3.90 %
Anthem Inc 3.69 %
ONEOK Inc 3.41 %
Lowe's Companies Inc 3.34 %
Becton, Dickinson and Co 3.26 %
Broadcom Inc 3.07 %
Region %
United States 93.62 %
Canada 5.48 %
Sector %
Financial Services 20.73 %
Technology 18.29 %
Healthcare 16.63 %
Consumer Defensive 9.01 %
Consumer Cyclical 8.03 %
Industrials 7.29 %
Energy 7.11 %
Communication Services 6.08 %
Name
M&G Securities Ltd
Address
EC4R OHH, London, United Kingdom
UCITS
Yes
Legal Structure
Open Ended Investment Company

Managers

John Weavers
Joined 04/28/2015

John Weavers has been the fund manager of the M&G North American Dividend Fund since April 2015. In January 2016, he was appointed deputy fund manager of the M&G Global Dividend Fund before being joined by Alex Araujo as co-deputy fund manager in April 2016. John is also the deputy fund manager for the M&G Global Listed Infrastructure Fund and the M&G (Lux) Global Listed Infrastructure Fund which were launched in October 2017. Prior to April 2015, John was deputy fund manager of the M&G Pan European Dividend Fund and the M&G Dividend Fund for two years. John joined M&G as a graduate in 2007 and worked as an analyst in the Equity Research team before joining the Income team in January 2012. He graduated from Oxford University with an honours degree in politics, philosophy and economics and is a CFA charterholder.

Data provided by Morningstar.

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