Teather & Greenwood Investment Management has unveiled the second in its new range of retail funds.
The UK equity income fund is an open-ended investment company and complements the UK equity growth fund, which was introduced at the same time. The fund is aimed at the medium-risk investor who is looking for a fund that offers a steady level of income.
Fund manager Andrew Chapman will pick a portfolio of 50 companies from the FTSE all-share index, chosen for their stability, strengths and their ability to produce good yields. These will cover a wide spread of sectors and will include companies such as Anglo-American, Royal & SunAlliance, Scottish Power, Carlton Communications, British Vita, BPB Construction and Britannic Assurance.
By reviewing the portfolio on a monthly basis and choosing companies that show good performance while dropping badly-performing ones, Chapman hopes to outperform the index itself, especially as at the moment prices are low following months of volatility in the markets.
In fact over the past three years the FTSE all-share index has fallen from a level of 2,343.85 points on September 25, 1998 to 2,236.4 points on September 25, 2001, having hit a high of 3,265 points on September 4, 2000.
Chapman himself was recruited into Teather & Greenwood in January 2001, when he started to work on the initial stages of the two funds. He worked for United Assurance from 1991 to 2000 and also manages the UK equity growth fund for Teather & Greenwood.