Independently owned Saracen Fund Managers has launched a fund aiming to deliver a high and growing level of income from a UK equity porfolio focused on small to medium cap companies.
Scott McKenzie, manager of the new Saracen UK Income Fund, said: “We believe there are significant opportunities in higher-yielding medium and smaller companies.”
• The fund will typically have 30 to 45 holdings and a significant exposure to small and medium cap companies
• With a longer-term investment horizon of five years, turnover is expected to be relatively low
• Saracen Fund Managers will offer an initial share classic with an annual management charge of 0.5 per cent on the first £50m of assets raised across income and accumulation classes
• An estimate of ongoing charges is 1.16 per cent
Ben Willis, head of research for Bristol-based Whitechurch Securities, said: “I like the fact that the fund is going to be a high-conviction, multi-cap income fund.
“This is a prudent move from Saracen as it will mark it out from the leviathan core traditional equity income funds and so could be held alongside these as a complementary position. It is going to take some time for the fund to establish itself but the right ingredients are there, so it is a fund to monitor.”