Article date: 15 April 2008
Stock market turmoil has left mega cap companies in the FTSE 100 looking good value.
Mervyn Douglas, manager of the Norwich Union UK Focus fund, said: "The turmoil in the stock market is throwing 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.
"In particular, many mega caps (eg. BP, GSK & Vodafone) offer dividend yields well in excess of 5% backed by strong balance sheets. Even within financials there will be long term beneficiaries of the current distress, two good examples being Intermediate Capital & Lloyds."
Mervyn Douglas is AA-rated by Citywire and the UK Focus Fund is A-rated by Standard & Poor's.
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About Norwich Union
Norwich Union is the UK's largest insurer. It is a leading provider of life, pensions and investment products and one of the largest financial adviser (FA) providers. FAs provide over 70% of the company's long-term savings business in the UK.
Norwich Union is the UK's largest general insurer with a market share of around 14%, with a focus on insurance for individuals and small businesses.
Norwich Union's news releases and a selection of images are available from Aviva's internet press centre at www.aviva.com/media
About Morley Fund Management
Morley Fund Management Limited is the UK-based asset management business of Aviva plc. Firms within the Morley group of companies manage £156bn from offices around the world as at 28 February 2006.
Morley manages both institutional and retail funds under the Morley brand. It also acts as investment manager for a range of retail investment funds, marketed in the UK under the Norwich Union brand, and international funds marketed under the Aviva Funds brand.
Further information about Morley Fund Management can be found at www.morleyfm.com