SECTOR PROFILE
Performance of funds vs sector and index
Name |
1yr (%) |
3yr (%) |
5yr (%) |
10yr (%) |
Man GLG Income |
-0.4 |
14.2 |
18.1 |
130.0 |
|
Janus Henderson UK Responsible
Income
|
-8.1 |
9.7 |
17.5 |
117.6 |
Temple Bar |
4.6 |
5.0 |
2.7 |
68.2 |
FTSE All Share |
1.0 |
12.0 |
17.8 |
92.7 |
IA UK Equity Income |
-2.7 |
11.9 |
12.0 |
87.6 |
Source : FE Analytics
“ deliberately and consistently ” avoids these areas of higher cyclicality . “ We strive to take a longer-term view and target high-quality resilient companies at attractive valuations that deliver growth and income irrespective of shorter-term trends and cycles ,” he adds . While the manager says other external factors , such as inflation and interest rates , are notable and their effect on the fund ’ s underlying companies is monitored , he claims they are not material drivers of underlying business or share price performance . “ Our investment strategy is to focus on structural dynamics within businesses that persist and deliver value creation largely regardless of the wider macroeconomic picture ,” he explains . Ryan Hughes , head of investment partnerships at AJ Bell , adds : “ Right now , oils , miners , banks and other cyclicals that make up much of the UK stock market look pretty appealing in a world of rising interest rates , but many investors are still significantly underweight .” For Hughes , this comes back to the basics of portfolio construction and understanding style and diversification . “ The benefits of having exposure to the unfashionable areas of the market are now being seen , but as is often the case , investors are slow to wake up to this and end up buying high and selling low ,” he says .
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