15 white knights of equity income

Sanlam Private Investments has released its mid-year review of equity income managers, with special mention of 15 fund managers featured on the White List of funds showing superior five-year returns.

15 white knights of equity income


The income study was established over 30 years ago by Principal Investment Management, which changed its name to Sanlam Private Investors in September 2012, and has been updated bi-annually ever since.

In its latest edition Sanlam highlighted two management duos that are relative newcomers to the White List: Chelverton UK Equity Income’s David Horner and David Taylor; and Unicorn Income’s Chris Hutchinson and John McClure.

“Both of these funds take a different approach to many in the equity income sector sourcing their income from smaller companies. Traditionally, most investors have viewed small-caps as engines of growth rather than income.

“Yet data provided by Professors Elroy Dimson and Paul Marsh at Numis shows that not only has small-cap value out-performed large-cap value by more than double since 1955, but within small cap itself, higher yielders have compounded at nearly 5% more per annum over the past fifty-eight years,” the report said.

Over at Artemis, Adrian Frost and Adrian Gosden are given their dues by Sanlam as the longest-serving and “perennial” members of its study.

“Their focus on cash flow and dividends is rigorously applied and we applaud their longevity,” Sanlam said.

Next up, and despite returning more than 30% over the past year Clive Beagles and James Lowen, managers of JOHCM UK Equity Income have slipped from the top spot, with Unicorn’s duo (mentioned above) taking that honour.

Find out the seven other ‘white knights’, by clicking the next page button…

Meanwhile, Martin Cholwill who runs Royal London UK Equity Income has spurred the fund further up the White List and Matt Hudson, manager of Cazenove UK Equity Income remains a buy even taking into account the move of Cazenove fund management to Schroders.

Aviva Investors Chris Murphy is also given a mention as a “safe pair of hands”, with his UK equity income fund climbing four places in this edition of the study.

Another long-standing duo praised by Sanlam is Leigh Harrison and Richard Colwell, who run the Threadneedle UK Equity Alpha Income and UK Equity Income funds.

A fund picker favourite in the equity income space – the Troy Trojan Income Fund run by Francis Brooke – has slipped down the White List despite a still pleasing return of 16%, Sanlam said.

The study put this down to the fund’s focus on capital protection and said it still has faith in the team at Troy and expects them to remain stalwarts.

Finally, Michael Clarke, manager of the Fidelity MoneyBuilder Dividend Fund “has continued quietly to got about his business, generating a solid level of income and a low volatility portfolio”, Sanlam said.




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