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Mark Barnett’s funds to exit UK Equity Income sector
by Robert St George on Jun 27, 2014 at 10:34
Both funds, managed by Citywire AA-rated Mark Barnett, will join High Income in the UK All Companies sector.
‘We are comfortable that these funds will have a different IMA classification and our clients and their advisers can be confident that this sector change will not impact the way their investments are managed,’ commented Ian Trevers, head of UK retail at Invesco Perpetual.
Of the three funds, the £807 million UK Strategic Income boasts the highest historic yield at 3.37%; the equivalent figures are 3.23% for the £606 million Income and Growth fund and 3.22% for the £7.2 billion Income fund.
Funds in the IMA’s UK Equity Income sector are required to achieve a historic yield in excess of 110% of the FTSE All Share index’s yield.
Invesco Perpetual moved Barnett’s £13.2 billion High Income fund from the UK Equity Income sector into the UK All Companies sector on 31 March; that fund’s historic yield is 3.1%.
Over the past three months the former fund has returned 1.65% compared with an average of 0.21% from the UK Equity Income sector, while High Income has generated 2.35% versus a loss of 1.45% from its average competitor in the UK All Companies sector.
UK Strategic Income, which Barnett has managed since 2006, has returned 54.25% over the past three years compared with an average of 35.68% from the UK Equity Income sector. Mallon’s Income and Growth fund has produced 45.21% through the same period.
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