Hill Samuel Asset Management has made management changes across the range of UK income funds it runs...
Hill Samuel Asset Management has made management changes across the range of UK income funds it runs.
Sandra Willans, head of UK retail at the group, has taken over the management of Hill Samuel UK Income unit trust. The £277.8m fund was previously managed by Hak Salih who now works at M&G&G.
Stephen Payne, who has recently relocated to Hill Samuel's London offices from Abbey Life's fund management operation in Bournemouth, has taken over running the Lloyds-TSB UK Equity Income unit trust. He will continue to manage Abbey High Income Equity unit trust.
In light of Payne relocating to London along with another member of Abbey Life's UK income team, Matthew Robertson, the expanded Hill Samuel UK income team is in the middle of making sure there is a high degree of commonality between portfolios.
Until now Abbey Life's investment strategy has been quite different to Hill Samuel's as illustrated in the individual performance of the two group's funds. Over three years the Abbey High Income Equity is ranked 69 out of 83, while the Lloyds TSB UK Equity Income is ranked 19 and Lloyds TSB Income is 47. The Hill Samuel UK Income fund is ranked 27.
One of the main differences between the investment strategies of Hill Samuel and Abbey Life was the different weightings given to sectors, according to Willans. For example, in the past Abbey Life overweighted banks and underweighted pharmaceuticals, whereas Hill Samuel did the complete opposite. Another difference was that the Abbey Life funds were more exposed to smaller companies.
Going forward Willans said the portfolios of each fund would be more in line. She said: "The main thrust of our current strategy is to reduce portfolio exposure to stocks which are dependent on inflation and favour selective stocks which are correlated to bonds.
"The low inflationary environment means retailers, brewers and manufacturers lack pricing power."
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From 6 April 2019