View the article online at http://citywire.co.uk/wealth-manager/article/a385115
JOHCM UK Equity Income
by Nisha Long on Jan 27, 2014 at 12:18
JOHCM’s Beagles and Lowen snap up miners to gain cheap exposure to emerging markets
JOHCM UK Equity Income co-managers Clive Beagles and James Lowen have been buying into the beaten up mining sector as a cheap way to gain exposure to emerging markets.
The Citywire AA-rated pair have been using the proceeds from the sale of a number of mid-caps they exited because their share price performance had driven down their dividend yields.
Beagles told Citywire Selection: ‘We have been forced to take profits because of our strong yield discipline and the mid-caps have suffered on this front.’
The duo sold out off Marshalls, WS Atkins and Close Brothers. They recycled the money into miners, the first time in four years the managers have put money into the sector.
Beagles and Lowen previously only held GlencoreXstrata, which was taken out of the portfolio before the merger. They recently bought into Rio Tinto, contributing a 6% weighting to natural resources in the £2.4 billion fund.
‘We want some emerging market exposure so Rio Tinto gives us that. The company is under new management and has a very good bottom-up capital discipline at work,’ Beagles said. ‘We have seen a material shift in mining and the use of iron ore is a function of global and Chinese GDP trends, which are both improving.’
Financials remain the managers’ largest sector bet where they maintain a large overweight. However, these holdings have not all been successful.
Beagles sold out of RSA last summer as the company came under pressure from the Irish regulator.
News sponsored by:
Today's top headlines
More about this:
Look up the funds
Look up the shares
- Standard Life PLC (SL.L)
- Legal and General Group PLC (LGEN.L)
- Aviva PLC (AV.L)
- Ds Smith Public Limited Company (SMDS.L)
- Delta Lloyd NV (0MK9.L)
- Cape PLC (CIU.L)
- Tesco PLC (TSCO.L)
- WPP PLC (WPP.L)
- Millennium & Copthorne Hotels PLC (MLC.L)
- Imperial Tobacco Group PLC (IMT.L)
- British American Tobacco PLC (BATS.L)
- HSBC Holdings PLC (HSBA.L)
- Aberdeen Asset Management PLC (ADNP_p.L)
- Beazley PLC (BEZG.L)
- SEGRO plc (SGRO.L)
- Catlin Group Ltd (CGL.L)
- Debenhams PLC (DEB.L)
- Close Brothers Group PLC (CBRO.L)
- Aberdeen Asset Management PLC (ADN.L)
- RSA Insurance Group PLC (RSA.L)
- Kingfisher PLC (KGF.L)
- IG Group Holdings PLC (IGG.L)
- Pearson PLC (PSON.L)
- Glencore Xstrata PLC (GLEN.L)
- Polymetal International PLC (POLYP.L)
- CSR PLC (CSR.L)
- 3i Group PLC (III.L)
- Halfords Group PLC (HFD.L)
- Restaurant Group PLC (RTN.L)
- Marshalls PLC (MSLH.L)