GAM has today announced the launch of the GAM UK Equity Income Fund that Gosden will manage alongside Chris Morrison, who has been with firm for seven years as an investment manager on the UK Diversified Fund.
Speaking to Portfolio Adviser, Gosden, who has run equity income funds for more than 20 years, said “this is going to be it” for his UK equity income journey.
He added: “I have built funds from nothing to something and this will be the last equity income fund I do. This ends right here at GAM. We will build this fund and run it, but there is going to be no skipping around from here, this is it now.
“Having only just found out where the toilets and lifts are in the building, that is a bold statement.”
The fund, which officially launched on 27 October, is structured as a UK Oeic and will invest in a portfolio of about 50 UK companies with sustainable dividends. It will be invested about 50% in large and 50% in mid and small cap shares, with a minimum market cap of £100m, and will contain no unlisted shares or micro-cap companies.
It is aiming to provide investors with both capital appreciation and an income yield, which is currently 4.5%. It will be benchmarked against the FTSE All Share.
The annual management charge is 0.75% and the estimated ongoing charge figure is 0.88%.
Gosden joined GAM in September having spent 13 years at Artemis where he was a partner and co-manager of the Artemis Income and Artemis High Income funds.
He explained GAM is the only house he considered to launch a UK equity income fund because of its financial stability, its position at the forefront of meeting regulation, such as Mifid II, and the fact that the firm is a truly active manager.
“The DNA of active management is GAM,” he said. “You cannot go to market and say, ‘We run an active fund’ if half your company is a passive fund, it looks a bit ridiculous.
“So to join a house that is financially stable, leading on regulation, but has a DNA in active management, it all became obvious where this fund was going to be launched, and it was GAM.”
Gosden’s co-manager Morrison joined GAM seven years ago to focus on the recovery-orientated UK Diversified Fund. He previously worked at Bank of Tokyo Mitsubishi UFJ Asset Management where he spent five years as a European equity fund manager.
