On the 2^nd July 2015, and following The Adviser Centre Monthly Review Meeting on 1^st July 2015, M&G Episode Income was added to The Adviser Centre as a Recommended fund.

The fund is managed by Steven Andrew, a member of the experienced Multi Asset team, which is led by Dave Fishwick. It is a mixed asset fund of equities, bonds, property and cash.  Mr Andrew seeks to grow the fund’s capital in order to deliver a sustainable and where possible, a rising level of income.  The manager is dedicated to delivering an attractive “natural” rate of income, which is paid monthly.  There is no attempt to over-reach for yield.

Philosophically, the team believes that the best approach to managing a portfolio lies in the flexible allocation of capital between global asset classes in response to changes in asset valuations, and understanding the behavioural and economic drivers of those valuations.

To achieve the fund’s objective Mr Andrew adapts the team’s views, investing with conviction in asset classes which he believes are attractively valued and trading below their fair value. While his willingness to invest in out-of-favour areas can result in capital volatility, particularly at times of market stress, the manager’s focus on increasing the fund’s capital base to support the delivery of the income stream into the future is critical to the proposition.

The fund is suited to investors seeking an attractive monthly income from a well-diversified, value-driven, multi-asset fund.  In particular, the fund is designed to appeal to investors who are at, or are approaching retirement.  As such, we are delighted to include the fund in our Recommended list.