M&G Gbl Basics sell for Gbl Div?

Newbie2saving

Hi all,

Would appreciate your comments here. Bought M&G Global Basics a couple of years ago and I am considering changing it for M&G Global dividends. I like the idea of topping this pot up as I when I can for the dividend reinvestment on the ACC type. As a direct comparison here are the results (know past performance is no indication of future);

M&G Global Basics - 22.24% (3yr cumulative)
M&G Global Dividends - 41.82% (3yr cumulative)

Both fit well with my profile and have little overlap as far as Morningstar X-ray shows.

What are your thoughts?

Thanks.

ColdIron

I fell out of love with M&G Global Basics a little while back. With the west in recession I can't see much in the way of global growth for a while to come but this fund hasn't performed very well compared to its peers of late

The top 10 holdings in the Global Dividends fund look more resilient and the top 10 sectors more defensive than the GB fund and as you say the higher dividend reinvestment might be better suited to the current environment

That said, Graham French has a good track record and the fund should come good but not, I fear, anytime soon

Newbie2saving

ColdIron wrote: »

I fell out of love with M&G Global Basics a little while back. With the west in recession I can't see much in the way of global growth for a while to come but this fund hasn't performed very well compared to its peers of late

The top 10 holdings in the Global Dividends fund look more resilient and the top 10 sectors more defensive than the GB fund and as you say the higher dividend reinvestment might be better suited to the current environment

That said, Graham French has a good track record and the fund should come good but not, I fear, anytime soon

Thanks for the response.

Exactly my thoughts. Liked the fund manager (then again I followed Bolton's China SS fund too , but I can't blame him entirely, my choice, sucked in as a new investor on HL's advertising!) initially, but performance has been a bit lacklustre with little signs of growth. Most of my portfolio is in the region >18% after the recent rises, but this one is just going over the 2% mark. Think it is time for a change, got a little profit in it, not much though!

I like the look of the global dividends fund, any other funds similar I should consider?

TheConways

Oddly enough, i also sold my Global Basics funds last night to rebalance my portfolio. I instead bought JPM Natural Resources, as I think we may have another supply squeeze on oil, gas and precious metals soon as demand picks up.

An article in today's Telegraph references it here:
http://www.telegraph.co.uk/finance/personalfinance/investing/gold/9896926/Gold-price-plunge-is-it-time-to-buy.html

Other sectors that I am invested in include Japan, Indonesia, US equities, Physical gold, and Germany. You can tell i'm pretty bearish on the UK digging itself out anytime soon!

Newbie2saving

TheConways wrote: »

Oddly enough, i also sold my Global Basics funds last night to rebalance my portfolio. I instead bought JPM Natural Resources, as I think we may have another supply squeeze on oil, gas and precious metals soon as demand picks up.

An article in today's Telegraph references it here:
http://www.telegraph.co.uk/finance/personalfinance/investing/gold/9896926/Gold-price-plunge-is-it-time-to-buy.html

Other sectors that I am invested in include Japan, Indonesia, US equities, Physical gold, and Germany. You can tell i'm pretty bearish on the UK digging itself out anytime soon!

Like JPM & FS natural / global resources, don't hold either, but have followed both over the past 9 months https://forums.moneysavingexpert.com/discussion/4014077 I didn't make an investment in any global resource fund, hence light in this area. Any reasoning for choosing JPM over FS?

Interesting article, thanks for the link.

Will give my M&G basics some serious consideration over the next couple of days.

TheConways

I have a life assurance policy that allows me to pick funds to invest in as part of the portfolio. However, I have a smaller choice of funds vs whole of market. It is "free" to switch between funds (I do pay fees on the whole policy).

JPM was on the list, FS wasn't

I would love to do what my mum does and stock pick - she's was up 30% in 2012! - but she devotes a serious amount of time to this endeavour, time I don't have. So I put my trust (and my money) in the professional stock-pickers...

Newbie2saving

I have full choice of what HL sells. Think I will go for the swap today.

Appreciate responses. Thanks.