View more on these topics

Sarasin rises to income challenge

Sarasin Chiswell has brought out an Oeic that aims for a rising income and capital growth by investing in a concentrated portfolio of 25 equally weighted stocks.

The Sarasin UK Equity Income Fund has an initial target yield of 4 per cent and will be managed by Graham Ashby, who will be supported by Kevin Bennett.
They will select stocks using Sarasin’s thematic process to identify companies that will benefit from global pricing power, efficiency and automation, intellectual property and innovation, global convergence and corporate restructuring. These themes are identified following macro analysis and allow stocks to be chosen irrespective of traditional sector and style classifications.

An equal weighting approach was felt to reinforce the manager’s determination to buy stocks at a lower price then sell at a higher price. Each stock will be analysed to determine the sustainability of the dividend and prospects for dividend growth. Ashby will only choose stocks that can contribute something to the portfolio, rather than slavishly following a benchmark index.

Sarasin points out that the definition of a UK equity income fund is commonly based on achieving 10 per cent above the FTSE All Share Index, but IMA figures from MArch 2006 indicate that some managers have been struggling to achieve this. Sarasin says the difficulty is that small and mid-sized stocks have significantly outperformed in recent years, so average yields are lower.

According to Sarasin there is less choice available to equity income managers, so it believes a more selective approach to stockpicking, combined with a focused portfolio, will achieve better results.

Although UK equity income is a crowded sector, this fund takes a slightly different approach. A concentrated portfolio addresses the problem of returns being diluted by too many average stocks, but means poor performance of individual stocks will have a greater impact on the portfolio.


L&G adds 17 funds to its Sipp

Legal & General has added 17 funds to its Portfolio Plus Sipp taking the total fund choice to over 270.The new funds will also be available on Portfolio Plus trustee investment plan and 15 of them on its portfolio bond, including the L&G discounted gift portfolio bond. L&G managing director, platforms and distribution Graham Newitt […]

A lot to learn

The experts can tinker all they want with products but education is needed more.

Executives admit DC scheme faults

Half of the senior financial executives who took part in a Fidelity survey of 100 leading companies’ attitudes to corporate pensions have acknowledged that their definedcontribution schemes will not allow employees to retire in comfort.


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    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