M&G Global Dividend Fund Annual Long Report and audited Financial Statements for the year ended 31 March 2021 Special version for Switzerland An Open-Ended Investment Company with variable capital authorised in the United Kingdom Contents Authorised Corporate Director’s Report ............ 1 Directors’ statement ........................... 3 Depositary’s Responsibilities and Report ........... 4 Independent Auditor’s Report .................... 5 Authorised Corporate Director’s Report, including the financial highlights and financial statements and notes ......................................... 8 Other regulatory disclosures .....................45 Glossary.......................................46 Annual Long Report and audited Financial Statements • March 2021 Authorised Corporate Director’s Report The Authorised Corporate Director (ACD) of Directors of the ACD M&G Global Dividend Fund presents its Annual Long C Dobson (non executive director), N M Donnelly*, Report and audited Financial Statements for the year S A Fitzgerald, P R Jelfs, ended 31 March 2021. M McGrade (non executive director), Please note that we have included an explanation of key LJMumford investment terminology in the ‘Glossary’ (at the back of * Resigned 30 June 2020. this report). Investment manager M&G Investment Management Limited, Company information 10 Fenchurch Avenue, London EC3M 5AG, UK This Open-Ended Investment Company (OEIC) is an Telephone: +44 (0)20 7626 4588 Investment Company with Variable Capital (ICVC) (Authorised and regulated by the Financial Conduct incorporated under the Open-Ended Investment Authority) Companies Regulations 2001. It is authorised and Registrar regulated by the Financial Conduct Authority (FCA) SS&C Financial Services Europe Ltd, under the Financial Services and Markets Act 2000. The SS&C House, St. Nicholas Lane, Basildon, Essex Company is a UCITS (Undertakings for Collective SS15 5FS, UK Investment in Transferable Securities) scheme as (Authorised and regulated by the Financial Conduct defined in the Collective Investment Schemes Authority) sourcebook, as issued (and amended) by the FCA. The Company was authorised on 9 July 2008 and the Depositary fund was launched on 18 July 2008. NatWest Trustee & Depositary Services Limited, House A, Floor 0, 175 Glasgow Road, Gogarburn, The Company’s principal activity is to carry on business EdinburghEH121HQ,UK as an OEIC. (Authorised and regulated by the Financial Conduct A shareholder is not liable for the debts of the Company Authority) and will never be liable to make any further payment to the Company after paying the purchase price of the Independent auditor shares. Ernst & Young LLP Atria One, 144 Morrison Street, Edinburgh EH3 8EX, UK Fund manager Stuart Rhodes is employed by M&G FA Limited which is an associate of M&G Securities Limited. Annual value assessment An annual assessment report is available which shows ACD the value provided to investors in each of M&G’s UK- M&G Securities Limited, based funds. The assessment report evaluates whether 10 Fenchurch Avenue, London EC3M 5AG, UK M&G’s charges are justified in the context of the overall Telephone: 0800 390 390 (UK only) service delivered to its investors. The report can be (Authorised and regulated by the Financial Conduct found at www.mandg.co.uk/valueassessment Authority. M&G Securities Limited is a member of the Investment Association and of The Investing and Saving Alliance (formerly Tax Incentivised Savings Association)) Annual Long Report and audited Financial Statements • March 2021 1 Authorised Corporate Director’s Report Important information Customer services and administration for Investors will benefit from a reduction in the annual non-UK clients: charge starting from 15 February 2021. The reduction in M&G Securities Limited, annual charge varies across the M&G funds and the c/oRBCI&TS,14,PortedeFrance, detail was communicated in the shareholder letter L-4360 Esch-sur-Alzette, dated 15 January 2021. Grand Duchy of Luxembourg The World Health Organisation declared the COVID-19 Please remember to quote your name and M&G client outbreak a pandemic on 11 March 2020. reference and sign any written communication to M&G. Failure to provide this will affect your ability to transact The COVID-19 pandemic has been an unprecedented with us. event. After an initial period of increased market volatility and uncertainty, there has been a marked Telephone: +352 2605 9944 recovery in global markets, bolstered by supportive Email: [email protected] economic policies from governments and positive news For security purposes and to improve the quality of our on vaccines for COVID-19. service, we may record and monitor telephone calls. You The ACD continues to monitor the ongoing operational will require your M&G client reference. Failure to risks that are posed to the Company and its service provide this will affect your ability to transact with us. providers due to global and local movement restrictions that have been enacted by various governments. Swiss paying agent and representative: Société Générale, Paris, Zurich Branch, Talacker 50, 8021 Zurich, Switzerland Investor information The Prospectus, Instrument of Incorporation, Key Investor Information Documents, costs and charges illustration, the latest Annual or Interim Investment Report and Financial Statements as well as a list of purchases and sales are available free of charge on request from the following addresses. The Instrument of Incorporation can also be inspected at our offices or attheofficeoftheDepositary. Customer services and administration for UK clients: M&G Securities Limited, PO Box 9039, Chelmsford CM99 2XG, UK Please remember to quote your name and M&G client reference and sign any written communication to M&G. Failure to provide this will affect your ability to transact with us. Telephone: 0800 390 390 (UK only) For security purposes and to improve the quality of our service, we may record and monitor telephone calls. You will require your M&G client reference. Failure to provide this will affect your ability to transact with us. 2 Annual Long Report and audited Financial Statements • March 2021 Authorised Corporate Director’s Report Authorised Corporate Director’s Responsibilities The Authorised Corporate Director (ACD) is required to prepare annual and interim long reports for the Company. The ACD must ensure that the financial statements, contained in this report, for the Company are prepared in accordance with the Investment Association Statement of Recommended Practice for Financial Statements of UK Authorised Funds (SORP) and UK Financial Reporting Standards, and give a true and fair view of the net revenue or expenses and net capital gains or losses for the accounting period, and the financial position at the end of that period. The ACD is required to keep proper accounting records, and to manage the Company in accordance with the Collective Investment Schemes sourcebook, as issued (and amended) by the FCA, the Instrument of Incorporation and the Prospectus, and to take reasonable steps for the prevention and detection of fraud or other irregularities. Directors’ statement This report has been prepared in accordance with the requirements of the Collective Investment Schemes sourcebook, as issued and amended by the Financial Conduct Authority. M&G Securities Limited 14 May 2021 Annual Long Report and audited Financial Statements • March 2021 3 Depositary’s Responsibilities and Report Statement of the Depositary’s The Depositary also has a duty to take reasonable care to ensure that the Company is managed in accordance Responsibilities and Report of the with the Regulations and the Scheme documents in Depositary to the Shareholders of relation to the investment and borrowing powers M&G Global Dividend Fund (‘the applicable to the Company. Company’) for the year ended Having carried out such procedures as we consider necessary to discharge our responsibilities as 31 March 2021 Depositary of the Company, it is our opinion, based on The Depositary must ensure that the Company is the information available to us and the explanations managed in accordance with the Financial Conduct provided, that in all material respects the Company, Authority’s Collective Investment Schemes sourcebook, acting through the AFM: the Open-Ended Investment Companies Regulations i) has carried out the issue, sale, redemption and 2001 (SI2001/1228) (the OEIC Regulations), as cancellation, and calculation of the price of the amended, the Financial Services and Markets Act 2000, Company’s shares and the application of the as amended, (together ‘the Regulations’), the Company’s income in accordance with the Company’s Instrument of Incorporation and Prospectus Regulations and the Scheme documents of the (together ‘the Scheme documents’) as detailed below. Company, and The Depositary must in the context of its role act ii) has observed the investment and borrowing powers honestly, fairly, professionally, independently and in the and restrictions applicable to the Company. interests of the Company and its investors. The Depositary is responsible for the safekeeping of all custodial assets and maintaining a record of all other Edinburgh NatWest Trustee and assets of the Company in accordance with the 14 May 2021 Depositary Services Limited Regulations. The Depositary must ensure that: • the Company’s cashflows are properly monitored and that cash of the Company is booked into the cash accounts in accordance with the Regulations; • the sale, issue, redemption and cancellation