Fund to watch: Jo Hambro Capital Management

Published by Emma Gunn on 25 September 2012.
Last updated on 25 September 2012

The Jo Hambro Capital Management UK Equity Income fund is for investors looking for an attractive level of dividend income, coupled with the potential for long-term capital appreciation.

James Lowen and Clive Beagles, the two managers of the £1.1 billion fund, seek out companies among the 350 biggest businesses in the UK whose yields are above average.

Both Lowen and Beagles have a good track record and their fund has performed consistently well over the past five years. According to Morningstar data, over the past 12-month and three-year periods they have outperformed the sector average at 8.87% and 51.7% respectively.

Over five years, the average is between 24.84% and 19.67% higher than the average UK Equity Income fund. That puts them third on the leader boards out of the 98 funds in their IMA sector.

Look long term

Andy Gadd, head of research at Lighthouse Group, says: "The fund managers currently have a bias towards companies that are more sensitive to economic growth and they also have a significant weighting in smaller and medium-sized companies."

"This is a fund to purchase and tuck away for the long term, in the expectation that it will outperform when recovery materialises."

The fund has previously been soft-closed because of its popularity but it is currently accepting all new investors. It is mainly invested in financials, with a portfolio weighting of 34.2%, consumer services at 21.8% and oil and gas at 14.9%.

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