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The current UK equity income sector must beone of the most competitive sectors within unit trusts.

In fact, apart from a brief problem in the late 1990s with the technology bubble, equity income has always been important for clients. This is hardly surprising, given that its objectives are capital and income appreciation, which is exactly what most clients want.

For JO Hambro, it must have been quite a coup to poach Clive Beagles from Newton. It is far easier to have an established name to attract the money.

Clive’s record at Newton was especially good after taking over from Toby Thompson. But does the fund offer anything that is not already out there? The short answer is yes.

First, the fund will be capped at £750m. You might consider this to be ambitious but just look at the leading funds in the sector. Most of them are in excess of £1bn. Of course, what enables the fund to be capped is a performance fee which accrues at the daily basis of 0.15 per cent for every 1 per cent of outperformance of the FTSE All-Share index.

In addition, the fund has a 1.25 per cent annual management fee so even if the fund has poor performance, JO Hambro still does not do too badly.

Given Clive’s performance at Newton, you might expect at least 4 per cent outperformance, which would give an annual management fee of 1.85 per cent. This is not too bad but, hey guys, how about taking some pain and have a smaller annual management charge? After all, if you have faith in Clive, you should not need to worry.

Mark Dampier is head of research at Hargreaves Lansdown

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