InvestecApr 19 2017

Investec alters objective on Brazier's £1.5bn UK Alpha fund

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Investec alters objective on Brazier's £1.5bn UK Alpha fund

Investec Asset Management has amended the objective of Simon Brazier’s £1.5bn UK Alpha fund in recognition of the income produced by the fund’s holdings.

Though the primary focus remains on producing capital growth, the firm has adjusted the investment objective on Mr Brazier’s fund to state it aims to provide both capital growth and income.

“The fund increasingly focuses on investing in the shares of companies with high levels of free cashflow, [which] have resulted in a higher level of income” the asset manager said in a circular to shareholders.

The UK Alpha product currently yields around 1.8 per cent, in part due to major holdings such as Shell, BP and HSBC, all of which yield more than 6 per cent. 

Investec said it did not expect the figure to rise materially as a result of the shift in objective.

Mr Brazier has run the fund since joining Investec from Columbia Threadneedle in 2015. 

Last year it proved one of the most popular offerings in the UK retail space, taking in more than £500m amid a torrid year for interest in active equity funds overall.

Data from FE shows the UK Alpha fund has returned 24 per cent since the manager took over the vehicle in January 2015, just above the 23 per cent average for the IA UK All Companies sector. 

The FTSE 100 has also increased 23 per cent over that period.