Slater looks beyond FTSE 100
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London-based fund manager Slater Investments has introduced the MFM Slater income fund to provide income and growth by investing in a broader range of stocks than the FTSE 100.
The fund will typically invest in 50 to 70 UK companies drawn from across the market cap spectrum, spanning the FTSE 100 to Aim. It will invest in shares of high yielding companies with growing profits and strong cash flows to produce a target dividend yield of 5.49 per cent.
Slater Investments believes its new fund differs from other income funds in that rather than heavy weightings in a handful of big FTSE 100 companies, it will draw attractive, often overlooked companies from outside the FTSE 100 which have sustainable and growing dividend yields and growth potential.
However, a concentrated equity portfolio than can invest in small and unquoted companies will potentially have a higher risk and reward profile than some investors will be looking for.
Defaqto insight analyst for funds Fraser Donaldson says: “Mark Slater, co-founded Slater Investments in April 1994 and has been an extremely successful growth fund manager. His MFM Slater growth and MFM Slater recovery funds have 1st quartile performance over one and three years, with the former fund in first position within its sector over both time periods.
“With no capitalization bias the new fund will look to gain value from mid and small cap stocks that many of the larger more established funds in the UK Equity Income sector are unable to take advantage of.
“With Mark Slaters’ track record, albeit for capital growth, it is possible that this fund could become a core holding within client portfolios given time. Equally, with the wide range of funds available in the UK Equity Income sector, this could also complement any existing holding within a client’s portfolio.”
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