Income investors may, at first, be wary of the dividend consideration coming so late in the process, but this shouldn’t be the case: the fund has a historic yield of 3.7 per cent, with underlying holdings picked for future dividend growth too.
The one-in, one-out policy means that the managers’ sell-discipline is very rigorous – it is often easier to identify a company to invest in, than it is to identify one that should be sold.
The holdings are rebalanced periodically to retain the equal weightings and continually assessed to see if there are better opportunities.
Having said that, turnover is relatively low (holdings are generally kept in the portfolio for three to five years).
For income investors looking to diversify their portfolio, or total return investors looking to benefit from the growth on offer in the region, this fund is well worth a look.
Darius McDermott is managing director of FundCalibre