M&G Pan European Dividend Fund
Richard Halle
Fund Manager: Richard Halle
Funds Managed: M&G European Strategic Value Fund, M&G Pan European Dividend Fund
The Fund aims to deliver a dividend yield above the market average, by investing mainly in a range of European equities. The Fund aims to increase distributions over the long term whilst also maximising total return (the combination of income and growth of capital).
The Fund aims to deliver a dividend yield above the market average, whilst aiming to increase annual distributions over the long term, by investing in a range of European equities. The Fund’s exposure to European equities may be gained through the use of derivatives. The Fund may invest across a wide range of geographies, sectors and market capitalisations. The Fund may also invest in other assets including collective investment schemes, other transferable securities, cash and near cash, deposits, warrants, money market instruments and derivatives.
The M&G Pan European Dividend Fund seeks to exploit market inefficiencies in pricing companies with good capital allocation discipline. This refers to a lack of recognition of the value of dividends as well as the often misguided encouragement of company ‘growth’ rather than shareholder returns. The manager pays particular attention to dividends, which provide the dominant component of total shareholder return over time. In-depth examination of company fundamentals is the key to discriminating between undervalued good quality companies and those with genuine problems. Good, quality firms are those that deliver returns on their investments above their cost of capital, and management’s primary responsibility is hence to ensure optimal capital allocation within the business to deliver those returns. To fulfil its mandate and investment strategy, the fund manager aims to run the portfolio with a dividend yield of at least 110% of the FTSE World Europe Index yield (that is, a 10% yield premium).
Richard Halle joined M&G in 1999 as an investment analyst specialising in the insurance sector. Since 2002, he has been a member of the European equities team and in 2008 he was appointed fund manager of the M&G European Strategic Value Fund and M&G Pan European Dividend Fund . Before joining M&G, Richard worked as a security analyst for the Sedgwick Group. Richard graduated from the University of Natal in South Africa with a bachelor of commerce and is a chartered financial analyst (CFA) charterholder.
For more information on this fund please contact us.