Man GLG UK Income Fund Professional Accumulation Shares (Class C)
UK Equity Income
New for 2018. Complementary to more index-aware funds
Man GLG UK Income aims to achieve a level of income above the FTSE All-Share index together with some capital growth, by investing primarily in UK equities or equities of companies that derive a substantial part of their revenues from activities in the UK. Its 4.1 per cent yield is comfortably ahead of the FTSE All-Share's 3.7 per cent and dividends are paid quarterly. Manager Henry Dixon has made his name previously running non-income focused funds. He focuses on dividend growth as opposed to the absolute level of yield, and runs a multi-size portfolio with a bias towards small UK dividend payers. It is this area that has generated recent outperformance and where Dixon's expertise lies. Because the fund does not own many of the typical names owned by larger dividend-focused funds, it will likely experience greater volatility of returns than competitors.
Like many other income fund managers, he takes a value-based investment approach (not 'deep' value, but he doesn't over-pay for stocks), and has managed to produce some exceptional outperformance in the short-term despite the style being out of favour.'We wouldn't expect him to have done as well as he has done in a growth?? environment,' says Darius McDermott, managing director of FundCalibre, the fund ratings and research provider.
The portfolio is relatively concentrated with around 60 holdings. Around 5 per cent of assets are in bonds. These tend to be high-yield bonds at the riskier end of the fixed income market.
Narrative and ratings content all as of 01 January 2018.See all Money Observer rated funds
|HSBC Holdings PLC||5.30 %|
|Royal Dutch Shell PLC B||3.99 %|
|Royal Dutch Shell PLC Class A||3.65 %|
|QinetiQ Group PLC||2.76 %|
|BHP Billiton PLC||2.51 %|
|John Laing Group PLC||2.45 %|
|Total SA||2.33 %|
|British American Tobacco PLC||2.24 %|
|Aviva PLC||2.22 %|
|Legal & General Group PLC||2.19 %|
|United Kingdom||89.11 %|
|Financial Services||35.48 %|
|Basic materials||13.12 %|
|Consumer Cyclical||8.87 %|
|Consumer Defensive||6.99 %|
Henry is a Portfolio Manager on the UK Equities team at Man GLG ('GLG'), having joined in October 2013. Prior to joining GLG, Henry was a Portfolio Manager and Founder of Matterley where he ran their flagship fund of the same strategy. Prior to that he worked at New Star, and The Family Charities Ethical Trust. Henry has engaged in equity investment management since 2004.
Data provided by Morningstar.
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