Bestinvest says
The fund's manager, Karen Robertson, follows a house process that aims to identify change ahead of the market. The process utilises the proprietary quantitative model as well as incorporating the manager's own judgement, which has proven effective historically but has failed to add value in the period since the financial crisis of 2008-9. The manager has struggled to adapt to these changed conditions and we don't have conviction that this process can add superior outperformance going forward.
The objective of this fund is to provide capital appreciation with an above average level of income. The income requirement is at least 110% of the FT All Share. To achieve these targets the fund invests in an actively managed portfolio of UK equities, predominantly high yielding equities. The key to the investment process is to identify earnings upgrades ahead of the market and valuation anomalies. A proprietary stock ranking tool, which utilises 12 factors, is initially used to identify potential investments. Prospective investments are then considered on fundamental grounds with the manager favouring companies which are cash generative, trading ahead of expectations and have solid management. The fund also benefits from a well resourced UK Equity team.