Bestinvest says
M&G appointed a new fund manager, Alex Odd, on this fund in July 2010 in place of Richard Hughes. Odd has a below average track record in the IMA UK Equity Income sector and we continue to suggest investors switch to one of our rated alternatives.
The fund mainly invests in large and medium size stocks across all sectors although the higher yield premium attached to the fund means that at times the fund is likely to target out of favour stocks. Favoured attributes for company holdings include a strong business franchise, competitiveness, good turnover and dividend growth. There is also a strong emphasis on investing in companies with quality management. In terms of valuing a company the approach generally considers a stocks value on its medium term prospects as opposed the shorter term, which can generally be affected by market noise. Stocks are sold when these criteria are no longer met, when stocks lose their yield premium, or when they have become overvalued.