M&G UK Growth Fund awarded ‘A' OBSR rating

The M&G UK Growth Fund, managed by Garfield Kiff, has joined the highly respected group of funds awarded an ‘A' fund rating by Old Broad Street Research (OBSR).

The M&G UK Growth Fund is a mainstream UK equity fund which focuses on undervalued high-quality businesses: companies that can increase their profits in a sustainable manner. Garfield has successfully managed the £385 million M&G UK Growth Fund since December 2007. The fund is top decile over one, three and five years and since Garfield took over management.

Jonathan Willcocks, managing director global sales at M&G, comments: "We are delighted that the M&G UK Growth Fund's consistent and outstanding long-term performance has been recognised with an A rating from OBSR which is highly regarded as an independent mark of quality by the retail market. This fund rating also acknowledges Garfield Kiff's expertise in managing one of our top performing UK equity funds. Since Garfield joined M&G in 2000 he has gained invaluable experience across the UK equities universe, working closely with Tom Dobell, manager of the M&G Recovery Fund. He is a great example of M&G's ongoing programme of nurturing and developing in-house talent."

Garfield believes sustainable earnings growth stories make attractive investments: well-managed companies leading the market in their field; those operating in growing markets; and those growing their dividend - an important but often-overlooked indicator of a company's health. Valuations are also vital consideration, which the manager believes are largely being ignored in favour of short-term factors. Over time these companies' attributes should overshadow the more negative external environment and, as part of a diversified portfolio, should contribute to resilient fund performance.

Gill Hutchison, investment research director at OBSR, comments: "We are pleased to introduce the M&G UK Growth Fund to the Service with an A Rating. The fund is managed by Garfield Kiff and is offered to investors as a core UK equity fund which aims to outperform the IMA UK All Companies on a discrete calendar year basis. Mr Kiff has benefited from Tom Dobell's stewardship over time (the manager of the M&G Recovery Fund) and has tailored these insights to carve out his own investment approach. First and foremost, he seeks to identify attractive investment opportunities from companies that are in the growth phase of their cycle and he is also looking for barriers to entry, good management and attractive valuations. We believe that this fund offers a credible core offering for the UK equity market."