Stay connected:
Citywire printed articles sponsored by:
View the article online at http://citywire.co.uk/wealth-manager/article/a653767
Majedie unleashes top performing UK equity income fund
Markets
by Dylan Lobo on Jan 28, 2013 at 07:40
Majedie Asset Management has opened up a top performing UK equity income fund to the wider market, Wealth Manager can reveal.
Chris Reid (pictured) has been running the Majedie UK Income fund behind closed doors after the boutique seeded the strategy with £10 million back in December 2011.
According to the group, the fund has returned 19.9% since its inception, outstripping the 15.3% return on the FTSE All Share (TR) Index over the same stretch.
This performance has convinced the group to launch the fund into the market to enhance its UK equity proposition.
Majedie chief executive Rob Harris told Wealth Manager: 'UK equity income has been a gap on our roster. We would never launch a fund to investors unless we have conviction that it can perform well and has a sufficiently distinctive approach. Equity income is an area we have considered for some time; we are now confident we have the skills in place to make a proper success of it.'
The fund, which yielded 4.6% in 2012, combines capital appreciation with income in a bid to maximise the total return for investors.
'This is not a run of the mill income fund,' Harris said, adding it has delivered this performance by adopting a 'distinct' approach and shying away from the usual suspects – companies with a high yield but often limited growth prospects.
'Instead [we are] looking for future money makers that may be hidden from view,' he said.
The process
Reid, who joined Majedie in 2008, said: 'The UK Income fund is fundamentally a stock picking fund. The process is simple – we are looking for cheap companies that are changing for the better and will deliver appropriate levels of income while this change takes place.
'You may not see the typical high yield stocks in this portfolio. We currently hold a good mix of cyclicals with strong balance sheets, paying a decent yield, and undervalued defensives that could re-rate.
News sponsored by:
Today's top headlines
More about this:
Look up the funds
Look up the shares
Look up the fund managers
Archive
Aberdeen Live supplement: Fundamentals point to ongoing flows and solid returns from EMD
After a record year for inflows and market-leading performance in 2012, emerging market debt has taken a large step towards the mainstream. Our recent debate covers the outlook for the asset class this year and where opportunities can be found.
On the road
Click here to find out more from the Audience Development team.
leave a comment
Please sign in here or register here to comment. It is free to register and only takes a minute or two.