IA UK Equity Income
The investment trust Temple Bar Hughes describes Temple Bar as a “ classic value-focused equity income trust ”. Redwheel took over its mandate from Ninety One in October 2020 , with current managers Lance and Purves aiming to find companies trading at a significant discount to their intrinsic value . “ The managers attribute the growthand quality-focused environment in recent years to ‘ peculiar monetary conditions ’, and a mindset among investors that it is rational to pay a premium for owning an above-average quality or growth stock ,” say analysts at QuotedData . The trust is currently yielding 3.8 % and is on a discount of 6 %.
The value pick Man GLG Income Both Hughes and Metcalfe like the £ 1.5bn Man GLG Income fund , run by Henry Dixon . “ This is more of an all-cap strategy , with some exposure to mid and small caps ,” says Hughes . “ It also offers a significant yield premium , and offers it monthly , which is great for income seekers .” Metcalfe says he approaches UK income by looking at both the IA UK All Companies and IA UK Equity Income sectors : “ On this basis , Dixon has a top-quartile Sharpe ratio over five years , and a top-quintile one over 10 years . While the fund is not the cheapest , the results justify the costs .” The fund is yielding 5.5 %.
The ethical choice Janus Henderson UK Responsible Income Andrew Jones has managed Janus Henderson UK Responsible Income for over 10 years . “ During that time , he has demonstrated outstanding overall performance figures but with strong defensive characteristics ,” Metcalfe says . The FE Investments team says that despite the difficulty in trying to deliver sufficient income from socially responsible companies , Jones “ sticks to the constraints rigidly and constantly considers an investment from the point of view of clients wanting exposure to ethical companies ”. The fund is yielding 4.1 %.
Issue 87 - September 2022 / 55 /