Bestinvest says
No information available.
The fund invests in a portfolio of high yielding UK companies, aiming for a high level of income and capital growth in excess of the FTSE All-Share Index over five years. Like the managers’ other funds, the process is based on their belief that the profit forecasts of company managers and stockmarkets are inaccurate, and that these forecasting errors are predictable. The managers first target companies with high dividend yields, believing that these often reflect low profit growth expectations – they screen for (1)Yields at least 2% above long-dated gilts; (2)Yields at least 2% above long-dated index-linked gilts; or (3)Yields above long dated index-linked gilts. The managers then search amongst these stocks for companies with strong cashflows, as they believe these are good indicators of strong growth in future profits.