As we near the end of ISA season those looking for income should consider the UK and Asia according to Adrian Lowcock, Head of Personal Investing at Willis Owen, the online investment platform.
Covid-19 has proven tumultuous for markets in the past year. However, with the success of the vaccine program in the UK, investor optimism is returning and with that, a boost to income funds.
Below, Adrian Lowcock, head of personal investing at Willis Owen, recommends three funds for investors seeking income opportunities this ISA season.
Threadneedle UK Equity Income
“Fund manager Richard Colwell is one of the best-known specialists in this sector. He has the flexibility to invest in both growth and value-style ideas to meet his objective of capital growth along with a steady income.
“The primary focus is on stock selection. Colwell holds a blend of high-quality companies with strong cash generation, and out-of-favour companies with recovery potential, some of which may not currently pay a dividend.
“The fund is unconstrained but is predominantly invested in large blue-chip companies, although Colwell will take significant sector bets against the index to match his thematic views.”
Schroder Asian Income
“This fund offers a way for income seekers to gain exposure to a region with attractive income opportunities. Manager Richard Sennitt has over 20 years’ experience covering Asia and is supported by a Schroders team of 40 analysts, many of whom are based locally.
“Sennitt employs a methodical process, which focuses on the scrutiny of company accounts, to produce a high conviction portfolio of 60 to 80 stocks. As well as offering healthy yields, companies must be financially sound with proven management that aims to improve shareholder returns.
“Shares will only be purchased if they meet strict valuation criteria. The emphasis on high quality businesses that can maintain and grow dividends has rewarded investors over the long-term.”
Man GLG Income fund
“This fund offers a highly disciplined approach to value investing in UK equity income. Manager Henry Dixon’s philosophy is that pricing inefficiencies can be profitably exploited. He targets companies trading below his team’s estimate of asset value, or those where the company’s profit stream is undervalued relative to the cost of capital.
“This comes with the additional aim of a dividend yield at least equal to the UK stock market. The team also looks for strong, free cash flow and net cash positions that may produce positive dividend surprises.
“As well as the primary focus on valuation, the manager also seeks elements of quality and positive earnings momentum. The portfolio may include significant exposure to mid- and small-cap shares.”
Adrian Lowcock, Chris Tuite
Head of personal investing Director & Head of Consumer Finance
Willis Owen MRM London
07849 846387 020 3326 9925
Notes to Editors
Willis Owen is one of the UK’s leading online investment service providers. Founded more than 20 years ago Willis Owen now has around £1bn of funds under management and has acted as an intermediary for over 150,000 customers and hundreds of millions of pounds worth of investments,
Willis Owen Limited is authorised and regulated by the Financial Conduct Authority.