The information in this site is intended for consultants, institutional investors and trustees only.

The information contained in these pages must not be used or relied upon by private investors. We recommend that you read our 'Terms & Conditions' before browsing the site.

Please click submit to confirm that you are a consultant, institutional investor or trustee and wish to continue.

This site uses cookies

A cookie is a small piece of information generated by a web server and sent to your computer when you access this website. Our cookies do not hold any personal information about you. This cookie is used to remember your selection next time you visit our site. It is stored on your computer’s hard drive but can be deleted at any time via the ‘Tools’ option on your internet browser. By clicking to accept and proceeding beyond this page, you agree to accept this cookie from this site.

This site also uses other types of cookies. For more details see our Privacy & Cookies policy. This provides options of how to opt out of these cookies.

Audience

Single country and regional equities strategies

M&G’s equity team shares a common philosophy through which investment ideas are discussed and refined. The team’s open culture means investment ideas are shared and challenged before they are implemented in portfolios. The equity team is supported by an extensive resource network including analysts, investment specialists, fund manager assistants, dealers and risk specialists.

For more information contact the team.

UK equities

M&G Recovery strategy

Tom Dobell

Fund manager: Tom Dobell

The original recovery strategy that has been successfully investing in out-of-favour companies, with the potential to restore themselves to health, since its launch in 1969. A robust and consistent approach that has proved successful for over 45 years.

Companies that have fallen out of favour and are experiencing problems, but are exhibiting recovery potential, are held through the different stages of the cycle until their turnaround is complete.  Tom and his team look for companies that can influence their own fate without relying on the economic environment to influence their true value.

M&G Smaller Companies strategy

Garfield Kiff

Fund manager: Garfield Kiff

The strategy invests in companies from the bottom 10%, by value, of the UK stockmarket. The investment team takes a bottom-up approach to stockpicking and aims to construct a well-diversified portfolio of between 70 and 90 stocks. They adopt a long-term perspective with particular focus placed on three specific criteria: scarce assets, growth drivers and valuation.

Scarce assets are the key elements that enable companies to generate sustainable, attractive returns. Depending on the nature of the business, scarce assets may be tangible, intangible or organisational.

Growth drivers provide companies with the opportunity to reinvest their returns profitably. They may include shifts in the commercial or regulatory environment, changes in customer behaviour or expansion into new markets.

Valuation is critical for differentiating between great companies and great investments. A comprehensive but flexible approach to company valuation is undertaken; a wide range of metrics are monitored to ensure an appropriate valuation for each individual company.

The quality of company management is central to the successful exploitation of scarce assets and growth drivers. Company meetings are therefore a crucial component of the investment process.

M&G UK Select strategy

Mike Felton

Fund manager: Mike Felton

The M&G UK Select strategy invests principally in the equities of UK companies with high growth potential with the sole objective of capital growth.

It is a high-conviction, valuation-driven strategy, across a diversified section of UK equities. We combine a bottom-up stock-picking approach with a macro-strategic overlay that is focused on finding undervalued companies with attractive growth prospects. We target a total number of stock holdings of around 50. A pragmatic approach to the investment opportunity means there is no predefined investment style or company size preference.

M&G UK Equity Dividend strategy

Richard Hughes

Fund manager: Richard Hughes

The M&G UK Equity Dividend strategy aims to achieve a return of 2% per annum above the return of the benchmark FTSE All-Share Index on a rolling three-year basis.

Richard follows an investment approach focused on bottom-up, individual stock selection. The portfolio has a bias towards high yielding sectors of the market, but nevertheless has the aim of being broadly diversified. The investment horizon is long-term, with no predetermined holding period.

European equities

M&G Pan European strategy

John William Olsen

Fund manager: John William Olsen

The M&G Pan European strategy seeks to capitalise on compelling investment opportunities from across the Pan European investment universe (including the UK). It invests in a concentrated portfolio of quality companies, with ‘economic moats’ to protect their profitability and an element of change helping to drive their value. Importantly, John William invests in businesses where short-term ‘disruptions’ have provided a clear valuation opportunity.

The fund manager believes that a focus on both quality and value offers a powerful combination, providing the long-term growth in returns that quality businesses can deliver, as well as the potential boost to a company’s share price when a ‘disruption’ has been resolved and the shares revert to a more appropriate level. Key to his approach is remaining patient and taking a long-term view, both in the entry and exit points of the strategy’s holdings. The fund manager keeps the portfolio focused, generally holding between 25 and 35 well-understood stocks, which broadly fall into one of two ‘buckets’ – ‘stable growth’ and ‘opportunities’. 

M&G European Select strategy

Charles Anniss

Fund manager: John William Olsen

The M&G European Select strategy is a core European (ex UK) equity fund, investing in a high-conviction portfolio of quality companies, with 'economic moats' to protect their profitability and an element of change helping to drive their value.

We believe that a focus on both quality and value offers a powerful combination, providing the long-term growth in returns that quality businesses can deliver, as well as the potential boost to a company's share price when a 'disruption' has been resolved and the shares revert to a more appropriate level. Key to the team's approach is remaining patient and taking a long-term view, both in the entry and exit points of the strategy's holdings. The fund manager keeps the strategy focused, generally holding between 35 and 45 well-understood stocks, which broadly fall into one of two 'buckets' - 'sustainable returns' and 'improving returns'.

M&G European Smaller Companies strategy

Charles Anniss

Fund manager: Michael Oliveros

The M&G European Smaller Companies strategy invests in a high-conviction selection of smaller quality companies from across Europe (inc UK), with 'economic moats' to protect their profitability and an element of change helping to drive their value.

We believe that a focus on both quality and value offers a powerful combination, providing the long-term growth in returns that quality businesses can deliver, as well as the potential boost to a company's share price when a 'disruption' has been resolved and the shares revert to a more appropriate level. Key to the team's approach is remaining patient and taking a long-term view, both in the entry and exit points of the strategy's holdings. The fund manager keeps the strategy focused, generally holding between 30 and 60 well-understood stocks, from a diverse universe of smaller companies, which is often less well covered and understood than a universe of larger businesses. Holdings in the strategy generally fall into one of two 'buckets' - 'great companies' and 'good to great companies'.

M&G European Strategic Value strategy

Richard Halle

Fund manager: Richard Halle

The M&G European Strategic Value strategy is a well diversified portfolio that invests in companies across Europe (including the UK). The investment strategy is based on the observation that value investing – buying cheap, out-of-favour companies – outperforms the market over time. Despite attractive valuations, many investors feel reluctant to buy these cheap stocks as they often focus on short-term news rather than long-term fundamentals, providing true value investors with the opportunity to buy these stocks at a significant discount to the market.

Richard uses a three-stage process. The first step is a quantitative-driven screen to identify the stocks in the cheapest 25% in each sector of the European investment universe. In the second, Richard assesses the quality of these companies through three fundamental tests: financial strength, business durability and management behaviour. This is with a view to avoiding companies with material barriers to mean reversion, otherwise known as ‘value traps’. If a company fails these criteria, Richard will not consider the stock for inclusion in the portfolio. In the final step, Richard works closely with M&G’s Portfolio Construction & Risk team to review the characteristics of the portfolio and the drivers of return on a regular basis.

To stay within the strategy’s value remit, the manager has a well-defined sell discipline. If a company’s valuation reaches the most expensive quartile of the screen or there are more attractively valued opportunities, he will exit the position. Another reason for selling a stock is if it no longer meets the above described fundamental criteria. The portfolio has a true value bias.

M&G Pan European Dividend strategy

Phil Cliff

Fund manager: Phil Cliff

The M&G Pan European Dividend strategy aims to deliver a dividend yield above the market average, by investing mainly in a range of European equities (including the UK).

Phil and his team focus on generating a total return while aiming to deliver a dividend yield premium to the European average and a rising income stream over the long term. They employ a bottom-up stockpicking approach, driven by fundamental analysis of individual companies. The investment strategy of the portfolio is to identify companies that are undervalued by the stockmarket, understand capital discipline and have the potential to increase dividends consistently, which Phil believes is key to long-term share price outperformance. Dividend yield, therefore, is not the primary consideration for stock selection.

US equities

M&G North American Dividend Strategy

John Weavers

Fund manager: John Weavers

The M&G North American Dividend strategy employs a bottom-up stockpicking approach, driven by the fundamental analysis of individual companies. The fund seeks to invest in companies that understand capital discipline, have the potential to increase dividends over the long term and are undervalued by the stockmarket. Dividend yield is not the primary consideration for stock selection.

The fund manager aims to create a diversified portfolio with exposure to a broad range of sectors. He selects stocks with different drivers of dividend growth to construct a portfolio that can cope in a variety of market conditions. The fund will usually hold around 40 to 50 stocks, with a long-term investment view and a typical holding period of three to five years.

M&G North American Value Strategy

Daniel White

Fund manager: Daniel White

The M&G North American Value strategy is a well-diversified portfolio that invests in companies across the US. The investment strategy is based on the observation that value investing – buying cheap, out-of-favour companies – outperforms the market over time. Despite attractive valuations, many investors feel reluctant to buy these cheap stocks as they often focus on short-term news rather than long-term fundamentals, providing true value investors with the opportunity to buy these stocks at a significant discount to the market.

Daniel uses a three-stage process. The first step is a quantitative-driven screen to identify the stocks in the cheapest 25% in each sector of the US investment universe. In the second, Daniel assesses the quality of these companies through three fundamental tests: financial strength, business durability and management behaviour. This is with a view to avoiding companies with material barriers to mean reversion, otherwise known as ‘value traps’. If a company fails these criteria, Daniel will not consider the stock for inclusion in the portfolio. In the final step, Daniel works closely with M&G’s Portfolio Construction & Risk team to review the characteristics of the portfolio and the drivers of return on a regular basis.

To stay within the strategy’s value remit, the manager has a well-defined sell discipline. If a company’s valuation reaches the most expensive quartile of the screen or there are more attractively valued opportunities, he will exit the position. Another reason for selling a stock is if it no longer meets the above described fundamental criteria. The portfolio has a true value bias.

Asian equities

M&G Asian strategy

Matthew Vaight

Fund manager: Matthew Vaight

The M&G Asian strategy invests in publicly listed companies throughout Asia (excl. Japan), regardless of sector and size. The strategy also invests in companies outside Asia that conduct a significant part of their business activities in the region. 

Matthew and his team look for companies that have the potential to create value for their shareholders over time. They believe that such value creation, rather than economic growth, is what drives share prices over the long run. Matthew takes an active, bottom-up approach to selecting companies to invest in, focusing on understanding a company’s return on capital and looking for well-managed, shareholder-oriented firms.

The investment strategy of the fund is to identify companies that are undergoing improvements in their return on capital, either through external change or internal change. The fund also invests in higher returning businesses where the market does not believe these levels of returns are sustainable; we define these as asset growth and quality companies.

Need further information?