View more on these topics

JOCHM gives Beagles the reins

JO Hambro Capital Management

JOCHM UK Equity Income Fund

Type: Oeic

Aim: Income and growth by investing in UK equities listed mainly on the FTSE 350 index

Minimum investment: Lump sum 1,000

Investment split: 100% in UK equities

Isa link: Yes

Pep transfers: Yes

Charges: Initial up to 5%, annual 1.25%, performance fee 15%

Commission: Initial 3%, renewal 0.5%

Tel: 020 7747 5678

The JOHCM UK equity income fund is an Oeic that will aim to achieve above average dividend yield through an actively managed portfolio of 50 to 70 stocks.

Charter Devon Law principal Michael Posner says: “JO Hambro Capital Management managed to lure Clive Beagles away from Newton, where he managed the top quartile higher income fund. As a result, it is launching the new equity income fund to make use of his undoubted skills in this sector.”

Posner feels the fund managers proven record of accomplishment will enhance the appeal of this fund as a ground floor opportunity to invest in a clean UK income fund. He says: “With historically low yields in fixed income and a gradual return to the markets by very wary investors, the prospects for this fund succeeding are relatively good.”

Posner likes the performance fee because it is an incentive for Beagles to get his sums right. “The fund will adopt an inevitable contrarian style and if any of the stocks held falls below the FTSE average, it will be replaced,” he says.

Casting an eye over the product literature Posner says: “The literature provided for the launch is well written, with sufficient clarity to enable this to be useful in presenting the details to clients. J O Hambro advises that they have secured the loyalty of the fund managers by generous terms but, no doubt, Newton thought the same.”

Turning his attention to potential drawbacks Posner says: “There is very little to dislike about this offering, which has been brought to the market as we begin to see some signs of a tenuous revival. Though with oil prices rising and the dollar in apparent free fall, it would be a very brave or foolhardy investor who resolved that equity investment was anything other than a higher risk road to future riches. However, the higher-yielding stocks tend to be among the safer companies in the FTSE 350 index, so that does counterbalance some of the risk.”

Posner highlights Framlington, Invesco Perpetual, and New Star as good performers in the same market over the past year. He thinks they will provide some competition but adds: “This is a new offering from a reputable investment group, by a fund manager with a proven ability and will stand on its own merits for that.”

BROKER RATINGS

Suitability to market Good
Investment strategy Good
Charges Average
Adviser remuneration Average

Overall 8/10

Recommended

Independent view

The Government got it spectacularly wrong on pricing so maybe it is time to at least try leveraging distribution.

FTBs are falling faster in the UK

The proportion of first-time buyers in the UK has fallen more rapidly than in any other country, according to research published by the Council of Mortgage Lenders.

Tapering of annual allowance – adjusted and threshold income

The definitions of adjusted income and threshold income used to determine whether, and to what extent, someone’s annual allowance will be reduced can be confusing.  Here we try to make sense of it all. The annual allowance will be reduced for high income individuals from 6 April 2016.  Our previous article Tapering of annual allowance […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm

    Email: customerservices@moneymarketing.com