The result is a portfolio of 50-70 stocks with a maximum limit of 5 per cent on any individual holding.
It also has a large-cap bias, while up to 20 per cent of the fund can also be invested overseas – increasing the number of opportunities available. There are some familiar number in the top 10 holdings including BP (5.2 per cent), Royal Dutch Shell (4.3 per cent) and GlaxoSmithKline (4.1 per cent).
It is a proven process which has seen the fund become one of the most highly regarded in the UK Equity Income sector.
It is very rare to see a fund in such a competitive sector which is first quartile over one, three and five years, more importantly its long-term figures deliver with the fund returning 308.26 per cent since Adrian took over, compared to 192.76 per cent for the Investment Association UK Equity Income sector. The fund also has an historic yield of 4.4 per cent.
This fund stands out in a truly competitive sector with a solid management team, process and track record which have consistently delivered. It has been one of our favourite income funds for a number of years and should be a consideration for all investors looking for exposure to UK income stocks.
Darius McDermott is managing director of FundCalibre