UK managers look to blue-chips in current volatility

Mervyn Douglas, the £109.3m Norwich Union UK Focus fund manager, says the recent turmoil has thrown up real opportunities for long-term investors. “Many companies look good value with the dividend yield of the UK market now equal to the yield on gilts,” he says. Douglas cited blue-chip names such as BP, GSK and Vodafone as attractive propositions. "Many mega caps offer dividend yields well in excess of 5% backed by strong balance sheets,” he says. “Even within financials there will be long term beneficiaries of the current distress, two good examples being Intermediate Capital and Lloyd...