Martin Currie adds payouts on Global Equity Income
Edinburgh-based fund manager moves to quarterly distributions of income on its £86m Global Equity Income fund.
Martin Currie is adding two additional income distribution dates a year on its £86m Global Equity Income fund, managed by Alan Porter.
The first distribution will be on 31 October 2012 and will continue quarterly from 31 January 2013.
The fund previously paid out income twice a year.
Martin Currie said the fund, which launched in November 2010, has reached £86m in size, thanks to inflows of £31m since the end of May.
The manager said he had increased his weighting in cyclical stocks between December of last year and February, reaching a neutral position in cyclicals.
“I moved from a bearish stance to a more neutral stance,” he said.
But Mr Porter said he had recently sold holdings in Norwegian offshore deepwater drilling company Seadrill and US chemical company Dupont which had returned him to an underweight position in the economically sensitive stocks.
The manager said cyclical stocks were “not stocks you own for the long term” and said he has been prepared to move them quickly as needed.
Mr Porter said he expects volatility to continue and said the current economic crisis in Europe was similar to the Asian crisis in the 1980s.
“The long term risk is we do have a lacklustre growth environment,” he said. “Contagion will be worst and take longer than everyone thinks.”
He added that the only solution to the debt crisis was to develop a plan that is “bought by everyone”.
The fund ranks second-quartile in the newly created IMA Global Equity Income sector over the one year period to June 8, returning a loss of 0.2 per cent, compared with a sector average loss of 2.6 per cent, according to Morningstar.