Following The Adviser Centre Monthly Review Meeting held on 21^st August 2019, we have added the M&G North American Dividend fund to our Positive Watch list.

The fund is managed by John Weavers, an established member of the M&G Income team.  He is supported by Stuart Rhodes (head of team and deputy manager), Alex Araujo and dedicated analysts, Chris Youl and San Tung Nguyen.  It was launched in April 2015, although the team has been managing a range of portfolios that are underpinned by a dividend growth philosophy since 2008, with the launch of the M&G Global Dividend fund.

Through this vehicle, the manager aims to grow capital over time, while also delivering an income stream that increases every year, by investing in a relatively concentrated portfolio of North American companies.  In keeping with the Income team’s approach, there is a clear focus upon dividend growth, rather the dividend yield in isolation.  He selects a range of stocks with different drivers of dividend growth, with a view to constructing a balanced portfolio that has the potential to deliver in a variety of market conditions.  The fund features ideas from across three categories of stocks: ”Quality” is the core of the fund and incorporates companies with strong market positions, stable cash flows  and growth opportunities; “Assets” features cyclical companies that have good capital discipline and a strong asset base; and, “Rapid Growth” includes companies that are growing rapidly and generating solid cashflows and a rising income steam.

Mr Weavers is a thoughtful, measured manager, who understands the challenges of investing in US equity markets and is dedicated to this disciplined, clearly articulated approach.   With his drive for dividend growth and willingness to embrace value-driven opportunities, we are monitoring the fund’s progress as the manager navigates different market conditions.