MAM Funds has added the M&G global dividend fund to its CF Midas balanced income fund and has topped up an existing holding in Veritas global equity income fund.
The Veritas fund takes a thematic approach to build a portfolio capable of producing a high and growing level of income while preserving capital over the long term.
M&G global dividend invests worldwide in companies with a track record of consistently growing their dividend payments.
MAM Funds likes the equity culture at M&G and sees fund manager Stuart Rhodes as a safe pair of hands.
CF Midas balanced income fund manager Alan Borrows feels that Rhodes invests properly by looking at companies in the same way as other M&G funds. MAM Funds holds other M&G funds in the CF Midas balanced growth fund but until now it had no exposure to M&G funds in the income fund.
Borrows believes equities are the place to be, despite a number of possible negative factors. He expects corporate earnings to remain at a reasonable level with dividends continuing to increase and feels the level of income distributed by CF Midas balanced income will grow over time.
Borrows says: “The M&G fund provides us with diversity of equity income. Income is going to be an important source of return in a difficult inflationary environment and equity income is going to provide protection from the worst of inflation.”