Majedie Asset Management has launched a UK Income fund for manager Chris Reid.
The portfolio, which was first seeded at the end of 2011, aims to deliver both income and capital growth, and to outperform the FTSE All Share.
At least 80% of the fund will invest in UK equities, and the manager will make use of the boutique’s research platform when selecting stocks for the portfolio.
Reid joined Majedie in 2008 and currently co-manages the group’s UK Focus and Tortoise funds. Previously, he worked at Deutsche Bank as pan-European travel and leisure analyst and, prior to that, was a transport analyst at Credit Suisse.
He said: “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.”
Rob Harris, chief executive of Majedie, added: “This is not a run of the mill income fund. It has a distinct approach, shying away from the usual suspects – companies with a high yield but often limited growth prospects – instead looking for future money makers that may be hidden from view."
An RDR compliant X share class is available to eligible investors at 0.75% AMC.
'Right thing to do'
£69m spent on upgrades
European fintech market 'underserved'