Income stalwart Richard Hughes will be replaced by Alex Odd as the manager of M&G's £501m Dividend fund from next month.
Hughes, who has run the fund since 2002, will continue to manage £1.3bn of UK equity assets at M&G as well as supporting Odd as deputy manager of the Dividend fund.
Odd, who also runs the £181m Income fund, will bring an unconstrained approach to portfolio construction, investing across the yield spectrum. He joined M&G in 2005 as a UK equity investment manager.
M&G says the management change will require only small portfolio adjustments.
Hughes, who has been with M&G for 24 years, says: "I recruited Alex five years ago with a view to nurturing the next generation of UK equity income managers at M&G. So it gives me great pleasure to hand over the Dividend fund to him now.
"His flexible approach aims to deliver consistent performance across different market conditions."
Predicted to hit £180bn AUM
Our regular video series continues
Speech to take 20 minutes
£60m AUM to Sanlam UK