Bestinvest says
The fund has been one of the stronger performers in the sector since inception. Performance did suffer during 2007 and the fund was downgraded by Bestinvest when Beagles took his career break, but it has subsequently bounced back strongly. There is a capacity limit of £1bn on the strategy, at which point JO Hambro will close the fund.
All stocks in the portfolio must have a higher prospective yield than the FTSE All Share, which reduces the investment universe to around 120-140 FTSE 350 companies and 50-100 small cap stocks. Once these stocks have been identified the managers build the portfolio using a bottom-up approach, favouring companies with strong cash and dividend flows. Stock turnover is relatively low (around 50%pa) - any stock whose yield falls below that of the index will be sold; the managers may also sell companies yielding more than the index if other valuation measures become stretched.