View the article online at http://citywire.co.uk/money/article/a872665
Former M&G income manager returns with own firm and fund
Former M&G Dividend manager Alex Odd returns to fund management, while River and Mercantile makes changes to UK Equity Unconstrained fund.
Former M&G manager Alex Odd has returned to fund management through the launch of his own firm.
Odd, who left M&G in 2013, has launched the VT Odd Real Income fund through his new venture, Odd Asset Management, set up from his home.
Odd is the sole manager of the new fund which is listed in the Investment Association's UK Equity Income sector. He said other personnel may be taken on in coming months.
'There are a lot of income funds in the UK,' said Odd, 'but very few are concentrated on generating income for people. Everyone competes on simple total return metrics.'
Odd wants the fund, which has a total expense ratio capped at 1%, to grow income but avoid the dividend cuts in the sector which he said were 'regular as clockwork.'
The fund will have 40 to 50 holdings and have a flexible mandate. 'It is all about growing distribution,' explained Odd. 'It is not a high yield fund. It has been 18 months in the making but there are some fantastic opportunities out there.'
Odd left M&G in 2013, after a three-year stint managing the Dividend fund.
Meanwhile, fund group River and Mercantile has revamped its UK Equity Unconstrained fund, switching the manager from Citywire AA-rated Dan Hanbury to Philip Rodrigs and cutting the annual management charge from 1% to 0.75%. The fund will also be renamed UK Dynamic Equity.
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by Daniel Grote on Jun 27, 2016 at 17:31