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Julian Gibbs

The magical and consistent performance of George Luckraft, formerly of ABN Amro and for the past two-and-a-half years with Framlington, continues to impress the industry.

With the soft closure of his big equity income fund, the much smaller monthly income fund also looks very attractive. Its yield at 3.5 per cent is well above that of the equity income fund but it still has an excellent past performance, being up by 62.1 per cent over two years.

Unlike most other managers of UK equity income funds, Luckraft’s performance has been extremely consistent and he is always well into the first quartile. He has achieved this by active management, buying low and selling high.

He also participates in new issue placings likely to go to good premiums. Three examples are Dignity, Office2Office and Titan Europe, which all showed him good profits.

With current strong corporate cashflows leading to increased takeover activity, Luckraft invests in companies which are likely to be taken over at high prices. Two successful examples are Coutts and PhotoScan.

He is also beginning to buy utility shares, which have fallen markedly and are now looking very attractive. His recent purchases include Cambrian Mining, which invests in mining company shares, with big holdings in Asia Energy and West Canadian Coal. Coal prices are now very high.

The two biggest sectors currently are financials at around 24 per cent and cyclical services at around 20 per cent. Luckraft holds 81 per cent in equities and around 12 per cent in convertibles and bonds, with 7 per cent in cash.

This fund is ideal for those investors who want an above-average and rising income as well as potential growth. It is also an ideal investment for trustees and Isas.

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