M&G Global Dividend FundSterling Class I – Accumulation sharesMonthly Fund Review as at 31 July 2020For investment professionals only

Highlights• The fund underperformed the MSCI ACWI Index, with Imperial Brands leading the detractors. Not owning Apple andAmazon.com held back relative performance.• We sold the holding in LVMH after a strong run and continued to build our positions in Enel and Procter & Gamble.• There were no new dividend announcements and no dividend cuts.

The main risks associated with this fundFor any past performance shown, please note that past performance is not a guide to future performance.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. Further risk factors that apply to the fund can be found in the fund's Key Investor Information Document (KIID).

Single year performance (5 years)

2019 2018 2017 2016 2015 Sterling I Accumulation 19.4% -7.1% 13.2% 40.7% -6.8% MSCI ACWI Index 22.4% -3.3% 13.8% 29.4% 3.8% Sector 22.0% -5.7% 13.9% 23.9% 2.8%

Performance over 5 years

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Jul 15 Dec 16 Dec 17 Dec 18 Dec 19 Jul 20

Sterling I Accumulation (151.2) MSCI ACWI Index (174.3)

Fund performance

1 month 3 months YTD 1 year 3 years p.a. 5 years p.a. Sterling I Accumulation -3.0% 3.3% -9.2% -9.3% 3.2% 8.6% MSCI ACWI Index -0.8% 9.1% -0.1% 0.5% 7.7% 11.8% Sector -0.2% 8.5% 0.4% 0.1% 6.7% 10.0%

Past performance is not a guide to future performance.

Performance comparison: The fund is actively managed. The benchmark is a target which the fund seeks to outperform. The index has been chosen as the fund’starget 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 incomeobjective and does not constrain the fund's portfolio construction.

Source: Morningstar, Inc and M&G, as at 31 July 2020. Returns are calculated on a price to price basis with income reinvested. Benchmark returns stated in GBP terms.

Performance charts © 2020 Morningstar Inc., All Rights Reserved. The information contained within: (1) is proprietary to Morningstar and/or its content providers;(2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for anydamages or losses arising from any use of this information.

Key informationFund manager(s) Stuart RhodesFund manager tenure from 18 July 2008Deputy fund manager(s) John Weavers, Alex AraujoISIN GB00B39R2Q25Launch date of fund 18 July 2008Launch of share class 18 July 2008Fund size (millions) £ 1,999.81Benchmark(s) MSCI ACWI IndexBenchmark type TargetSector IA Global sectorNumber of companies 39Historic yield 2.61%Index yield (MSCI ACWI Index) 2.12%Portfolio turnover over 12 months 22.77%VaR 17.80%Payment dates Feb, May, Aug, NovEx-dividend dates Jan, Apr, Jul, Oct

ChargesMaximum entry charge 0.00%Ongoing charge 0.86%

Risk characteristicsAs at 31/07/2020 FundAlpha (%) -4.10Information ratio -0.71Sharpe Ratio 0.23Historic tracking error (%) 4.76Beta 1.13Standard deviation (%) 27.14Forecast tracking error (active risk, %) 8.29Active share (%) 90.25

Things you should knowThe fund invests mainly in company shares and is therefore likely to experience largerprice fluctuations than funds that invest in bonds and/or cash.

Fund ratingsMorningstar Analyst rating

Overall Morningstar rating QQQThe Adviser Centre rating RecommendedDefaqto Rating 5 DiamondsFinancial Express Crown Rating

Fund Calibre Rating YesRSM rating YesSquaremile rating ASource of Morningstar ratings: Morningstar, as at 31 July 2020Source: Adviser CentreSource: Defaqto, as at 31 July 2020Source: Financial ExpressSource: FundCalibreSource: RSMSource: Squaremile

Ratings should not be taken as a recommendation.

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Country breakdown (%)

Fund IndexRelative

weightUS 38.9 56.6 -17.7Canada 16.0 2.6 13.4UK 13.8 4.3 9.5Switzerland 7.1 2.9 4.2Australia 5.7 1.9 3.8Denmark 4.3 0.7 3.6France 2.6 2.9 -0.3Ireland 2.0 0.5 1.6Other 9.4 27.6 -18.2Cash 0.2 0.0 0.2

Industry breakdown (%)

Fund IndexRelative

weightInformation technology 18.3 20.9 -2.6Consumer staples 17.5 8.1 9.4Health care 15.5 12.6 2.8Materials 13.6 4.7 8.9Financials 13.1 13.0 0.1Energy 11.7 3.3 8.4Consumer discretionary 6.0 12.0 -6.0Utilities 3.6 3.2 0.4Industrials 0.6 9.1 -8.4Communication services 0.0 9.4 -9.4Real Estate 0.0 2.8 -2.8Other 0.0 1.1 -1.1Cash and near cash 0.2 0.0 0.2

Largest holdings (%)

Fund IndexRelative

weightGibson Energy 7.6 0.0 7.6Imperial Brands 6.6 0.0 6.6Methanex 4.4 0.0 4.4Microsoft 4.3 2.9 1.3Roche 4.2 0.5 3.7Standard Life Aberdeen 4.0 0.0 4.0Keyera 4.0 0.0 4.0Amcor 3.8 0.0 3.8Bristol-Myers Squibb 3.5 0.3 3.2Visa 3.4 0.6 2.7

Capitalisation breakdown (%)

Fund IndexRelative

weightMega cap (> $50bn) 43.9 58.7 -14.8Large cap ($10 - $50bn) 24.3 32.5 -8.2Mid cap ($2 - $10bn) 23.1 8.6 14.5Small cap (< $2bn) 8.5 0.1 8.4Cash 0.2 0.0 0.2

Largest overweights (%)

Fund IndexRelative

weightGibson Energy 7.6 0.0 7.6Imperial Brands 6.6 0.0 6.6Methanex 4.4 0.0 4.4Standard Life Aberdeen 4.0 0.0 4.0Keyera 4.0 0.0 4.0Amcor 3.8 0.0 3.8Roche 4.2 0.5 3.7Bristol-Myers Squibb 3.5 0.3 3.2ST Jamess Place 3.1 0.0 3.1Trinseo 3.0 0.0 3.0

Largest underweights (%)

Fund IndexRelative

weightApple 0.0 3.7 -3.7Amazon 0.0 2.7 -2.7Alphabet 0.0 1.8 -1.8Facebook 0.0 1.2 -1.2Alibaba Group Holding 0.0 0.9 -0.9Tencent Holdings 0.0 0.8 -0.8Johnson & Johnson 0.0 0.8 -0.8Nestle 0.0 0.7 -0.7JP Morgan 0.0 0.6 -0.6Home Depot 0.0 0.6 -0.6

CommentaryGlobal equities consolidated their gains from the previous three months, with currency movements dictating July’s outcome. The MSCI ACWIIndex fell in sterling, was little changed in euros and rose in US dollars. Emerging markets and Asia Pacific ex Japan outperformed, followed bythe US. The S&P 500 Index rallied and erased its losses for the year in US dollars, while the Nasdaq Composite reached a new record high.Japan and Europe were the main laggards.Sector performance followed the familiar pattern of ‘new economy’ stocks continuing their upward momentum. Consumer discretionary andtechnology outperformed after Amazon.com and Apple delivered double-digit returns in US dollars on the back of better-than-expectedresults. Materials added value, but was an outlier among cyclical sectors. Industrials and financials trailed the market, while energy brought upthe rear. Defensive stocks were also mixed. Utilities and consumer staples delivered returns ahead of the market, but healthcareunderperformed.The fund underperformed the MSCI ACWI Index, with Imperial Brands leading the detractors.Imperial Brands reversed June’s outperformance as tobacco stocks came under renewed pressure despite evidence of solid operatingperformance from industry peers such as Philip Morris International and British American Tobacco. We think shares of Imperial Brandscontinue to offer compelling value on a prospective dividend yield of more than 10%. We added to the holding on weakness.The UK company welcomed a new chief executive on July 1, and we look forward to the next step of our engagement with the board.ADP and Visa were outliers in a strong technology sector after their results were given a lukewarm reception. ADP, the payrolls softwarecompany, provided a cautious outlook for the year ahead, which overshadowed better-than-expected results for the previous quarter. Visa’searnings exceeded market expectations, but the digital payments company did not provide guidance for the full year.Not owning Apple and Amazon.com had a negative impact on relative performance. Apple has paid rising dividends in recent years and istherefore a potential investment candidate, but the valuation is demanding, in our view. Amazon.com does not pay a dividend and istherefore not considered for our dividend growth approach.Standard Life Aberdeen drifted lower in a lacklustre financials sector. We believe the shares remain attractively valued on a dividend yield ofmore than 8% and we support the UK asset manager’s decision to continue buying back shares.An uninspiring reporting season weighed on Roche and Novartis in healthcare. We added to Novartis on weakness.Taiwan Semiconductor Manufacturing Company (TSMC) and Tokyo Electron outperformed in a buoyant semiconductor industry. Both stocksreached all-time highs.TSMC shares jumped more than 30% after Intel announced delays to its next-generation chips, handing TSMC a significant edge. TSMC alsoaccompanied a solid set of results with a positive outlook for the third quarter.Tokyo Electron was another beneficiary of a favourable reporting season. The equipment manufacturer reaffirmed its full-year guidance fordouble-digit growth in sales, profits and dividends.Pandora shares climbed to their highest level since 2018 after the Danish jewellery company’s trading update for the second quarterexceeded market expectations. Lowe’s, the US home improvement retailer, extended this year’s rally to more than 20% as the shares soared tonew heights.Ørsted, the world leader in offshore wind power generation, made the biggest positive contribution to performance. Shares of the Danishcompany rose 18% and ended the month near an all-time high.Arthur J Gallagher (financials) and Gibson Energy (energy) continued to buck the trend in their respective sectors. Arthur J Gallagher, the USinsurance brokerage, reported better-than-expected results. Gibson Energy, a midstream company which owns and operates pipelines andstorage terminals, demonstrated the resilience of its business model with a solid set of results and robust cash generation in the secondquarter.

Dividend announcementsThere were no new dividend announcements during the month. In an environment where the outlook remains uncertain, many of ourholdings in the US and Canada continued to pay their quarterly or monthly dividends.

Key changesWe sold the holding in LVMH as a source of cash after the French luxury goods company’s shares rallied 40% from their lows in March. Wecontinued to take profits in strong performers such as Microsoft and Lowe’s. Both stocks reached record highs during the month.We continued to build our positions in our recent purchases of Enel and Procter & Gamble. Enel provides exposure to the structural growth inrenewables, while Procter & Gamble provides a source of reliable cashflows and dividends in a period of ongoing economic uncertainty.

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Fund codes and charges

Share class ISIN Bloomberg CurrencyShare class launch

dateOngoing

chargeHistoric

yield

Minimuminitial

investment

Minimumtop up

investmentSterling A Acc GB00B39R2L79 MGGDAAG LN GBP 18/07/2008 1.36%* 2.05% £500 £100Sterling A Inc GB00B39R2M86 MGGDAIG LN GBP 18/07/2008 1.36%* 3.64% £500 £100Sterling I Acc GB00B39R2Q25 MGGDIAG LN GBP 18/07/2008 0.86%* 2.61% £500,000 £10,000Sterling I Inc GB00B39R2R32 MGGDIIG LN GBP 18/07/2008 0.86%* 3.63% £500,000 £10,000Sterling R Acc GB00B46J9127 MGGDVRA LN GBP 03/08/2012 1.11%* 2.35% £500 £100Sterling R Inc GB00B6VRX242 MGGDVRI LN GBP 03/08/2012 1.11%* 3.64% £500 £100Sterling X Acc GB00B39R2N93 MGGDXAG LN GBP 18/07/2008 1.36%* 2.05% £500 £100Sterling X Inc GB00B39R2P18 MGGDXIG LN GBP 18/07/2008 1.36%* 3.64% £500 £100

Any ongoing charge figure with * indicates an estimate. The ongoing charge figure may vary from year to year and excludes portfolio transaction costs. The charges are mostly, if not exclusively, the Annual Charge which may be discounted depending on the size of the fund. For furtherdetails, please see the fund’s Key Investor Information Document (KIID). The fund's annual report for each financial year will include details on the exact charges made.Please go to www.mandg.co.uk/literature to view the Costs and charges illustration which contains information on the costs and charges applicable to your chosen fund and share class.Please see the Important Information for Investors document and the relevant Key Investor Information Document for more information on the risks associated with this fund and which share classes are available for which product and which investor type.

Important informationThe M&G Global Dividend Fund is a stand alone OEIC.

The Morningstar Analyst Rating™. © 2020 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.

The Morningstar Overall Rating based on the fund’s Sterling Class I shares. Copyright © 2020 Morningstar UK Limited. All Rights Reserved. Ratings should not be taken as recommendation.

For financial advisers only. Not for onward distribution. No other persons should rely on any information contained within. This financial promotion is issued by M&G Securities Limited which is authorised and regulated by the Financial Conduct Authority in the UK and provides ISAsand other investment products. The company’s registered office is 10 Fenchurch Avenue, London EC3M 5AG. Registered in England No. 90776

Contact M&GPrivate Investorswww.mandg.co.uk/investor0800 390 390Charitieswww.mandg.co.uk/charities

Intermediary & Wealthwww.mandg.co.uk/adviserInstitutionalwww.mandg.co.uk/institutions

For your protection calls may be recorded or monitored. 3 / 32008

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