Defaqto on Slater Investments' MFM Slater Income Fund
View of Defaqto insight analyst for funds Fraser Donaldson
Donaldson says: “The investment objective of the fund is to produce an attractive and increasing level of income in addition to seeking long-term capital growth. The fund will invest in shares of high-yielding companies with growing profits and strong cash flows across the full market capitalisation.
“The fund will typically hold a concentrated portfolio of 50 to 70 stocks of mainly UK equity but some overseas equity may also be held. The fund manager will seek companies that offer above average yield with a reliable and growing dividend stream and good earnings growth coupled with a strong balance sheet.
“Slater Investments is a London-based boutique investment management company which focuses primarily on UK equity. Mark Slater is the fund’s investment adviser and chief investment officer for Slater Investments.
“He co-founded the company in April 1994 and has been an extremely successful growth fund manager. Both his other funds, MFM Slater growth and MFM Slater recovery can boast first quartile performance over one and three years with the former fund in first position within its sector over both time periods.
“Advisers seeking income for their clients will, I’m sure, want to take a good look at this fund where dividends are distributed quarterly. With no capitalisation bias the fund will look for value from mid and small cap stocks that many of the larger more established funds in the UK Equity Income sector are simply unable to take advantage of.
“It is quite possible that this fund could easily become a core holding within client portfolios given time. With the wide range of funds available in the UK Equity Income sector, this fund could also complement any existing holding within a client’s portfolio.”