Unicorn UK Income is producing “solid” returns despite the death of lead manager John McClure, according to the Sanlam Private Investments Income Study mid-year review.
The report, which rates income funds’ performance, said the £652m fund from Unicorn dominated the prestigious White List Specials group.
It said: “Unicorn UK Income maintains its top slot following yet another strong period of performance.
“Sadly, the lead manager, John McClure, passed away in June.
“Simon Moon and Fraser MacKersie have learned their craft from Mr McClure and we believe they will continue to produce solid risk-adjusted returns with their focus on smaller companies with strong cashflows and well-covered dividends.”
Some former members of the White List Specials, including Aviva Investors £983m UK Equity Income and £1.6bn Troy Trojan Income, fell into the Grey List, meaning people should hold investments in these.
Scottish Widows Investment Partnership’s £65m UK Income and £713m UK Equity Income funds were at the bottom of the Black List, meaning that advisers whose clients are in these funds were urged by the report to sell.
Aberdeen Asset Management, which has owned the funds since April 1 of this year, declined to comment.
ADVISER VIEW
Tom Dean, chartered financial planner for London-based Plutus Wealth Management, said: “Some of the larger funds may identify some of the attractive smaller and medium companies’ holdings but it will make hardly any difference because they are so big. They just can’t build up a large enough holding to affect the yield. It will be interesting to see whether this is an advantage for smaller funds.”
