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Liontrust's A-rated income pair in global equity switch
by Sarah Miloudi on May 07, 2013 at 08:00
Liontrust will broaden the mandate of James Inglis-Jones and Gary West's Income fund.
The move will allow the managers to pick and choose from global companies that match their strict investment and yield criteria, rather than being restricted to the guidelines of the Investment Management Association's (IMA) UK Equity Income sector.
Up to 20% of the fund has been invested outside of the UK since the summer of 2011, and Liontrust said sticking to its current mandate could prevent the managers from taking full advantage of all the investment opportunities they are identifying.
By removing the fund's current geographic restriction A-rated Inglis-Jones and West will be able to find stocks with better potential for returns over the medium and longer term.
Inglis-Jones said: 'It has been our experience that the wider the universe of stocks we can select from, the greater the potential of the investment process to deliver strong returns.'
The fund uses the Liontrust Cashflow Solution process, which has been applied to the Liontrust Income fund since March 2009.
Using this process, returns to the end of April have been 106.2% versus 98.3% by the FTSE All-Share Index and 93.9% by the average fund in the IMA UK Equity Income sector.
The move will take effect on 3 July, when the vehicle will move into the IMA's Global Equity Income sector.
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