Retail investors are now able to access the UK income fund seeded by Majedie Asset Management at the end of 2011.
The Majedie UK Income fund is managed by Chris Reid, who also runs the boutique’s UK Focus and Tortoise funds, and targets an “attractive” yield while outperforming the FTSE All-Share index over the long term.
Seeded on 19 December 2011, the fund has outperformed its benchmark since inception, returning 19.9 per cent against the FTSE All-Share’s 15.3 per cent.
Reid says: “The UK Income Fund is fundamentally a stock picking fund. The process is simple – we are looking for cheap companies that are changing for the better and will deliver appropriate levels of income while this change takes place.
“You may not see the typical high yield stocks in this portfolio. We currently hold a good mix of cyclicals with strong balance sheets, paying a decent yield and undervalued defensives that could re-rate. We want undermanaged businesses with strong financials, companies gaining market share that are looking to be future leaders and undervalued pariahs becoming investible.”
The Majedie UK Income fund has an RDR-ready share class which carries an annual management charge of 0.75 per cent.