M&G Optimal Income, Recovery, Global Dividend, and Global Basics have all attracted in excess of £752m in the last year.
A further four M&G funds have attracted more than £200m in this time, including the M&G Global Emerging Markets fund. In total, M&G manages 50 funds in the IMA unit trust and OEIC universe.
FE Alpha Manager Richard Woolnough’s M&G Optimal Income is the firm’s biggest gainer since October 2010, almost doubling in size to £5.1bn, while Stuart Rhodes’ M&G Global Dividend fund has almost quadrupled in size.
Top-10 best sellers over past 12 months
| Name |
Size 1-yr ago (£m) |
Size now (£m) |
Inflows (£m) |
| Stan Life Global Absolute Return Strategies |
5,218 |
8,318 |
3,374 |
| M&G Optimal Income |
2,809 |
5,079 |
2,217 |
| Newton Real Return |
2,310 |
4,363 |
2,154 |
| M&G Recovery |
5,849 |
6,727 |
1,175 |
| M&G Global Dividend |
350 |
1,332 |
990 |
| CF Ruffer Total Return |
1,292 |
2,212 |
892 |
| First State Asia Pacific Leaders |
5,172 |
5,967 |
889 |
| Aberdeen Emerging Markets |
1,900 |
2,500 |
845 |
| First State Global Emerging Markets Leaders |
1,323 |
2,057 |
790 |
| M&G Global Basics |
4,860 |
5,481 |
752 |
Source: FE Analytics
The inflow figures exclude any impact made by performance.
While some commentators argue that M&G’s strong marketing capabilities have tipped the balance in its favour, the four funds in the top-10 are consistently among the best performers in their relevant sectors.
M&G Recovery and Global Basics are top-quartile performers in their respective IMA UK All Companies and Global sectors over three-, five- and 10-year periods.
M&G Sterling Strategic Bond and Global Dividend, which were both launched in the last five years, are top-quartile over a three-year period.
Performance of funds vs sectors over 10-yrs
| Name |
3-yr returns (%) |
5-yr returns (%) | 10-yr returns (%) |
| M&G Recovery |
54.7 |
27.1 |
131.6 |
| IMA UK All Companies |
42.7 |
1.2 |
53.2 |
| M&G Global Basics |
61.3 |
38.2 |
244.8 |
| M&G Global Dividend |
57.9 |
N/A |
N/A |
| IMA Global |
35.7 |
7.2 |
41.18 |
| M&G Optimal Income |
55.1 |
N/A |
N/A |
| IMA Sterling Strategic Bond |
31.9 |
14.8 |
53.4 |
Source: FE Analytics
"I think it’s this conservative approach that has held them in such good stead," said Tim Cockerill, head of investment at Rowan Dartington. "They avoid getting caught up in market noise."
"M&G has a very good range of equity and bond funds. Importantly, both teams have got macro calls right time and time again."
"For example, the fixed interest team made a call on banks long ago, and removed them from their portfolios. While other firms have been tempted to re-enter the market, M&G have stuck to their guns, which has paid off for them."
Commenting on the study, a spokesperson for M&G said: "We have been very fortunate to have the right products with the right performance at the right time."
The firm’s total assets under management (AUM) in the IMA unit trust and OEIC universe now stand at more than £40bn.