Run by the Managing Director of BlackRock’s UK Equity Team this is a focused portfolio of roughly 40 stocks aiming to return above 110% of the FTSE All Share as well as producing capital growth. To achieve this McLeod-Clarke runs a barbell strategy. Part of the fund will be focused on high dividend producing companies and will be managed with a low turnover. The remainder will more actively managed and concentrate on stocks with high growth characteristics.
The fund has performed strongly since September 2008 during which time the manager has rotated his portfolio aggressively to exploit rapid changes in the market. Currently he has a significant exposure to miners and financials whilst maintaining the yield on his portfolio.
We do not recommend that clients hold this fund alongside Mark Lyttleton’s BlackRock UK Dynamic fund despite the fact that recent performance has diverged, this is because stock overlap is likely to be high; currently UK Dynamic holds almost 50% of UK Incomes common equity holdings which represents 64% of total assets.
The fund has been awarded 4 stars.