US investors should benefit from corporate action - M&G's Smith

M&G's Aled Smith believes US investors are likely to continue reaping the benefits of increased corporate action to cut costs and boost operating efficiency through the current unfavourable economic conditions.

Smith, the £759m M&G American fund manager, says US companies have a proactive approach to creating shareholder value, generating opportunities for investors in all economic environments. With the US market rallying strongly already this year, the manager highlights US beverage giant Coca-Cola as a current top stock pick. He believes while investors have shied away from the company on falling soft drinks sales, the true value of the company lies in the reach of its distribution business. "The first class approach to shareholder value creation in the US corporate sector coupled with...