August's top five funds
M&G GLOBAL DIVIDEND FUND
The fund attracting the most money in the UK open-ended investment companies sector over a one-month period is the M&G Global Dividend fund.
The £7.5 billion fund, managed by Stuart Rhodes, was at £7 billion a over a month ago, and has attracted approximately £524 million between 2 August and 2 September.
Rhodes' fund aims to deliver a dividend yield above the market average by investing in a range of equities. It aims to grow distributions over the long term while also maximising total return (the combination of income and growth of capital).
Over one year, M&G Global Dividend has returned 19.6% compared with 17.6% in the UT Global sector as at 30 August.
Top holdings in the fund include Prudential, Methanex, Microsoft, Novartis and Johnson and Johnson.
SCOTTISH WIDOWS EMERGING MARKETS FUND
The fund to attract the second-highest inflows is the £622 million Scottish Widows Emerging Markets fund, managed by Iain Fulton. Between 2 August and 2 September the fund attracted £347 million.
The top five holdings in the fund are: Samsung Electronics, iShares MSCI Emerging Markets, Taiwan Semiconductor Manufacturing, China Mobile and Tencent. The fund invests in long-term capital growth through shares of companies based in developing countries.
NEWTON REAL RETURN
The third-most-popular fund is the £8.1 billion Newton Real Return, managed by Iain Stewart and James Harries. The fund's objective is total return comprised of long-term capital growth and income by investing in a broad multi-asset portfolio.
Top holdings in the fund include US Treasury Bond (BOND 3.125% BDS 15/02/43 USD100), GlaxoSmithKline, Bayer, Reynolds American and Noratis.
NEWTON GLOBAL EQUITY
The fourth is the £1.6 billion Newton Global Equity, managed by Jeff Munroe and Paul Markham. The fund objective is to aim for long-term capital growth by investing in equities and similar investments in companies listed globally.
The top five holdings in the fund are Toyota, Roche, Bayer, Microsoft and Novartis.
CAZENOVE UK OPPORTUNITIES FUND
The £2.1 Cazenove UK Opportunities fund, managed by Julie Dean, completes the top five.
Top holdings in Dean's fund include Rio Tinto, Barclays, Melrose Industries, Legal & General and Reed Elsevier.
Funds attracting most money in August
|FUND NAME||SIZE ONE MONTH AGO (£m)||SIZE NOW (£m)|
|M&G Global Dividend||7,045.91||7,511.42|
|Scottish Widows Emerging Markets||288.5||622.83|
|Newton Real Return||8,004.78||8,199.74|
|Newton Global Equity||1,331.84||1,669.87|
|Cazenove UK Opportunities||1,781.20||2,142.80|
This story was written by our sister website Interactive Investor
The general term for the rate of income from an investment expressed as an annual percentage and based on its current market value. For example, if a corporate bond or gilt originally sold at £100 par value with a coupon of 10% is bought for £100 then the coupon and the yield are the same at 10%, or £10. But if an investor buys the bond for £125, its coupon is still 10% (or £10) and the investor receives £10 but as the investor bought the bond for £125 (not £100) the yield on the investment is 8%.
An interchangeable term for shares (UK) or stocks (US). Holders of equity shares in a company are entitled to the earnings and assets of a company after all the prior charges and demands on the company’s capital (chiefly its debts and liabilities) have been settled. To have equity in any asset is to own a piece of it, so holders of shares in a company effectively own a piece proportionate to the number of shares they hold. (See also Shares).
Generic, loosely-defined term for markets in a newly industrialised or Third World country that is in the process of moving from a closed economy to an open market economy while building accountability within the system. The World Bank recognises 28 countries as emerging markets, including Argentina, Brazil, China, Czech Republic, Egypt, India, Israel, Morocco, Russia and Venezuela. Because these countries carry additional political, economic and currency risks, investors in emerging markets should accept volatile returns. There is potential to make large profit at the risk of large losses.
If you own shares in a company, you’re entitled to a slice of the profits and these are paid as dividends on top of any capital growth in the shares’ value. The amount of the dividend is down to the board of directors (who can decide not to pay a dividend and reinvest any profits in the company) and they will be paid twice yearly (announced at the AGM and six months later as an interim). Dividends are always declared as a sum of money rather than a percentage of the share’s price. Although dividends automatically receive a 10% tax credit from HM Revenue & Customs (HMRC), which takes the company having already paid corporation tax on its profits into account. Dividends are classed as income and, as such, are liable for personal taxation and so shareholders have to declare them to HMRC.