Wealth Manager - the site for professional investment managers

Register to get unlimited access to all of Citywire’s Fund Manager database. Registration is free and only takes a minute.

A guided tour of Sanlam's controversial Income Study

The Sanlam (previously Principal) Income Study, prompted Invesco Perpetual to defend Neil Woodford's track record. However, there was plenty else to chew as we take you through the key moves in the Study's White, Grey and Black lists. 

Whiter than white

Unicorn UK Income

Unicorn UK Income has been bumped up onto the White List this year with its managers, Citywire AA-rated John McClure and A-rated Christopher Hutchinson, praised for standing out from the equity income crowd with a larger than average proportion of smaller companies and an attractive level of income.

The fund returned a net income of £20.40 on an £100 investment over five years, and ranks top of the list in the Citywire UK Equity Income sector for total returns over three and five years.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.

PFS Chelverton UK Equity Income

PFS Chelverton UK Equity Income has also moved from the Grey to the White List thanks to Citywire AAA-rated managers David Horner and David Taylor’s proven expertise at investing in small companies.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.

Premier Monthly Income

Another new entrant on the White List, the Premier Monthly Income fund made the grade after producing a net income of £22.40 on an £100 investment over five years.

Sanlam gave the fund a ‘hold’ rating, and singled out manager Christopher White for praise saying he had ‘steadied the ship’.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.

Rathbone Blue Chip Income & Growth fund

Another new kid on the block, or rather the White List, the Rathbone Blue Chip Income & Growth fund received a ‘hold’ recommendation having returned 17.1% over five years versus the FTSE All Share’s 13.2%.

The study gave credit to managers, Citywire A-rated Julian Chillingworth and AA-rated Alan Dobbie, for their use of a broad number of assets for capital growth and income.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.

Schroder Income Maximiser

The Schroder Income Maximiser fund has made it back onto the White List despite a period weaker performance in 2010 and 2011.

Sanlam said Citywire A-rated manager Thomas See had successfully used a derivative overlay to enhance income for investors and received a ‘buy’ recommendation.

The fund has returned a net income of £30.60 on £100 over five years, and ranks top of the White List in this category.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.

Shades of Grey

Invesco Perpetual High Income

The most high profile name on the Grey List, Neil Woodford’s demotion from the White List has grabbed all the headlines.

The star manager’s Invesco Perpetual High Income fund has dropped to the Grey List with Sanlam giving the £12 billion fund a ‘sell’ recommendation arguing that its size meant it was less able to be nimble and react quickly to changing markets.

Sanlam also recommended investors ‘sell’ Woodford’s £9.2 billion Invesco Perpetual Income fund due to its large size and its focus on large cap, defensive stocks, predominantly in health care and consumer goods.

‘We would prefer managers who are able to be more pragmatic in the face of swiftly changing circumstances,’ it said.

In response Invesco Perpetual told (i)Wealth Manager(/i): 'Neil Woodford has been generating exceptional returns for his investors for over 20 years, through varying market conditions. His portfolio is intentionally focused towards dependable, undervalued companies which he is confident will generate attractive returns over the long term.'

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.

Threadneedle Monthly Income

Woodford was hardly alone moving down from bright white to shades of grey with Citywire A-rated manager Jonathan Barber and his Threadneedle Monthly Income fund also dropping down.

The downgrade comes despite the fund returning 16.3% over five years beating both the FTSE All Share’s 13.2% and the FTSE 350 Higher Yield’s 5.6% over the same timeframe.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.

Fidelity MoneyBuilder Dividend

Also fading to grey was the Fidelity MoneyBuilder Dividend fund, run by Citywire A-rated manager Michael Clark.

Like the Threadneedle Monthly Income fund the Fidelity MoneyBuilder Dividend fund beat the FTSE All Share and FTSE 350 Higher Yield over five years, returning a net income £20.80 on a £100 investment over the same period.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.

Henderson UK Equity Income

But being on the Grey List is not all bad news, or rather not if the fund was previously on the Black List.

One fund making the move upwards was the Henderson UK Equity Income fund which is run by Citywire AAA-rated manager James Henderson.

The £349 million fund has returned a net income of £15.40 on a £100 investment over five years, the lowest on the Grey List.

However, Henderson has returned 16.4% over five years, beating both the FTSE All Share and FTSE 350 Higher Yield by a comfortable margin.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.

Liontrust Income

Also moving up was the Liontrust Income fund which was previously on the Black List.

Citywire A-rated managers James Inglis-Jones and Gary West produced a net income of £21.20 on a £100 investment over five years, but have undershot the FTSE All Share’s 13.2%, returning 8.9% over the same period.

Sanlam said: ‘With the team approaching their four year anniversary on the fund, their cash flow investment philosophy is bearing fruit. Having moved out of the Black List, we expect big things of the team here’

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.

Ignis UK Equity Income

The Ignis UK Equity Income fund was also promoted onto the Grey List. The fund is run by Graham Ashby and returned a net income of £17.50 on a £100 investment over five years. Over the same period the fund delivered 7.7% compared to the FTSE All Share’s 13.2%.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.

Into the Black

And so to the Black List…..

Jupiter Income Trust

Anthony Nutt is soon to retire from his fourteen year tenure on the Jupiter Income Trust and Sanlam has therefore given the fund a ‘sell’ recommendation but advised investors to keep an eye on the transition of its management to Ben Whitmore.

Sanlam said the £1.9 billion fund had been a regulator on the White List for many years but has suffered weaker performance recently delivering 0.1% over five years, compared to the FTSE All Share’s 13.2%.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.

Insight Investment Equity High

Keeping questionable company with the Jupiter Income Trust was the Insight Investment Equity High fund which also dropped to the Black List in 2013.

The study said that Citywire A-rated Timothy Rees has returned a net income of £17 on a £100 investment over five years.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.

Neptune Income

Woodford was not the only star name to fall from grace in this year’s study as Robin Geffen’s Neptune Income fund slipped from the Grey List to the Black.

The £202 million fund has returned 10% over five years, beating the FTSE 350 Higher Yield’s 5.6% but falling short of the FTSE All Share’s 13.2%.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.

PSigma Income

The PSigma Income fund has hit the Black List having delivered a net income of £17.70 since the end of 2007 on a £100 investment.

Bill Mott’s £387 million fund is mostly invested in UK listed large cap stocks such as GlaxoSmithKline, Royal Dutch Shell and Vodafone.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.

CF Canlife UK Equity Income

Also down to this year’s Black List is the CF Canlife UK Equity Income fund.

The £79 million fund is managed by Craig Rippe and returned a net income of £16.90 on an £100 investment over five years.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Play Sarasin’s Boucher: why I like salmon with chocolate

Sarasin’s Boucher: why I like salmon with chocolate

Henry Boucher, manager of the £129 million Sarasin Food & Agriculture Opportunities fund, explains why he is gobbling up salmon and chocolate stocks.

Play Alibaba hype, the UK slowdown and opportunities in European sovereign bonds

Alibaba hype, the UK slowdown and opportunities in European sovereign bonds

Libby Ashby and leading wealth managers analyse what the Alibaba IPO hype means for Chinese equities, slowing growth of the UK economy and whether there’s anything left to play for in the European sovereign bond market.

Play Tesco, Japan and the rise of the central banker

Tesco, Japan and the rise of the central banker

 Libby Ashby and leading wealth managers scrutinise the food retail sector, Japan’s consumption tax hike and political risk in the markets.

Your Business: Cover Star Club

Veteran banker boosts Sanlam’s stockbroking team

Veteran banker boosts Sanlam’s stockbroking team

A veteran private banker has been recruited by Sanlam Private Investments to strengthen its advisory stockbroking team.

Wealth Manager on Twitter