JO Hambro to soft-close UK Equity Income fund
JO Hambro Capital Management (JOHCM) is to soft-close its JOHCM UK Equity Income fund, following strong inflows since launch six years ago.
The investment boutique has a policy of capping its funds at launch in order to help deliver and sustain performance. Managed by James Lowen and Clive Beagles, the fund is about to reach its cap of £750m.
It currently has £616m of assets under management and JOHCM says the cap is likely to be reached in the short-term.
Richard Troue, investment analyst at Hargreaves Lansdown, says the fund is among their favourites.
The mangers focus on companies with the ability to combine strong growth with high dividends. Among their holdings are, for example, GlaxoSmithKline and Majestic Wine. (article continues below)
Like other managers in the UK equity income sector, they were affected by the BP dividend cut. However, they managed to protect performance by investing across the whole of the British stock market instead of focusing only on FTSE 100 companies.
Troue says the fund is one of his favourites. Its exposure to smaller companies has recently been beneficial, although they are more volatile than their larger counterparts.
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