At the beginning of the month Sue Noffke was named the permanent manager on the Schroder fund, taking over from Sonja Schemmann who had run the portfolio since 2006 but who left for maternity leave in November.
In addition, in recent months the fund’s mandate has been expanded to allow up to 20% in non-UK equities. So far Noffke was added three non-UK names: Total, Statoil and KPN.
Winterflood Securities (Wins) say the manager is also in the process of increasing the number of portfolio holdings and drifting away from its previous mega cap bias. Previously the fund tended to be run on a concentrated basis but holdings have so far been increased to 38 with a likely target range of 40-50.
Now looking further down the market cap scale for opportunities, Noffke says Schroder Income Growth currently has 6% in mid caps.
In December the manager was given permission to covered call options on the portfolio to enhance income, although income generated from this strategy is not allowed to exceed 20%. So far Noffke has written four, none of which have been yet called. Total income from this is likely to amount to 2% of earnings for the financial year, Wins reports.
According to the AIC, several trusts have undergone similar portfolio modifications this year. The trade body says eight companies have changed their policy during 2011, many to encompass a larger investment universe, expand their focus and lift geographic restrictions.
Among those that have instigated changes to the geographic remit of their portfolios are: Blue Planet International Financials (from just Europe); Securities Trust of Scotland (to international income); Edinburgh Investment Trust (to allow 20% overseas); and Pacific Assets has allowed 20% of its portfolio to be invested outside Asia-Pacific.
