Majedie opens UK Income fund to advisers

Majedie Asset Management has opened its £9.7m UK Income fund to the wider market 13 months after first launching the portfolio.

Managed by Chris Reid, the fund has gained 19.9 per cent since launch, Majedie said, compared with a 15.3 per cent rise in the FTSE All Share index. During 2012 the fund achieved a yield of 4.5 per cent.

The UK Income fund aims to outperform the FTSE All Share as well as maintain an “attractive” yield.

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Mr Reid is co-manager of the £310m Majedie UK Focus and £418m Majedie Tortoise funds.

The manager said: “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 investable.”

The minimum initial investment on the UK Income fund’s RDR-ready share class is £10,000, and its annual management charge is 0.75 per cent.