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Investec shuns equity income

Investec Asset Management managing director David Aird says the firm will not try to compete in the equity income sector and is focusing on expanding its cautious managed and global equities funds.

Investec has 26 UK funds but none in the highly competitive equity income sector but Aird says the cautious managed fund run by Alastair Mundy has just passed the 1bn mark and has taken 25 per cent of all IFA inflows to the sector over the last 12 months to June.

He says the fund has agreed links with 20 UK life comp- anies over the last three-and-a-half years and it is starting to see sales momentum after the firm made 12,000 presentations in two years, pitching the fund to IFAs as an altern- ative to with-profits.

Aird says Mundy has consistently taken out a put option for a small part of the port- folio as insurance against a market fall.

Investec’s sales and mar- keting drive will aim to exp-and the fund to 4bn within 18 months.

The firm is also looking to aggressively expand Mark Breedon’s 200m global free enterprise fund to take advantage of renewed interest in high alpha global equities.

Aird says: “You make the quantum leap in assets by making your core propositions world class.

“We are being very specific about where we want to build the brand and cautious managed and global equity are our two main drivers.”

“Global equities is a big sector but the competition is not as great as UK equity. It is good to be a big fish in a small pond when it starts to grow.”

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