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J O Hambro UK Equity Income Class Y - Accumulation (GBP)

Sell:111.40p Buy:111.40p Change: 2.20p (2.02%)
Prices as at 23 October 2020
Sell:111.40p
Buy:111.40p
Change: 2.20p (2.02%)
You can buy or sell holdings in this fund through a Stocks and Shares ISA, Lifetime ISA, SIPP or Fund and Share Account
Prices as at 23 October 2020
Sell:111.40p
Buy:111.40p
Change: 2.20p (2.02%)
Prices as at 23 October 2020
You can buy or sell holdings in this fund through a Stocks and Shares ISA, Lifetime ISA, SIPP or Fund and Share Account
The selling price currently displayed is higher than the buying price. This can occur temporarily for a variety of reasons; shortly before the market opens, after the market closes or because of extraordinary price volatility during the trading day.

Our view on this Fund

This fund does not feature on the Wealth Shortlist of funds our analysts believe have the potential to outperform their peers over the long term. This is not a recommendation to sell; however, if you are thinking of adding to your investments, we believe the Wealth Shortlist is a good place to start. View funds on the Wealth Shortlist »

Clive Beagles and James Lowen do something quite different to a lot of other equity income managers. They invest in high-yielding larger companies like most income funds do, but they invest quite a bit in higher-risk small and medium-sized companies too. They also invest in out-of-favour companies they think are ripe for a turnaround.

They've got a good track record and we think they have the potential to deliver good growth and income over the long term. The fund doesn't feature on the Wealth 50 list of our favourite funds though. It's more expensive than other UK equity income funds with managers who've also got strong track records. We're also not keen on the fund's performance fee.

Our view on the sector

Equity income funds are popular with investors. Most aim to generate a rising income, and increase the value of your original investment, over the long term. The income can be paid out, or reinvested in the fund to boost long-term growth. Different fund managers take different approaches to income investing. Some focus on larger companies that are seen to be more stable and have paid regular dividends for many years. Others invest in higher-risk small and medium-sized companies. These might pay a lower income to start with, but have more growth potential. We think carefully chosen equity income funds can form the cornerstone of almost any portfolio.

Performance Analysis

The fund's performed better than the broad UK stock market since launch. Our analysis shows investments in small and medium-sized companies have boosted performance over the long run, but they can also increase volatility.

A focus on unloved companies means the fund has seen some periods of weaker performance. Out-of-favour businesses can stay that way for some time, but this style has paid off for this fund over longer periods. Investments in financials companies held back performance during the 2008 financial crisis, for example. But they rebounded in 2009 once investors became more positive. This isn't a guide to how the fund will perform in future though.

Investment Philosophy

The managers think unloved companies have the biggest potential. Some of these companies have been through a tough patch, so they look for the ones they think can turn themselves around and return to favour with investors. They focus on companies they think will grow their dividends over time.

Process and Portfolio Construction

The managers look for high-yielding companies, often in sectors that have been shunned by other investors. The aim is to benefit from the attractive, hopefully growing, dividends the companies pay, as well as rising share prices as they return to favour. Then they sell the shares and move on to the next unloved opportunity.

The managers spend a lot of time meeting company management to get a good understanding of the company's future prospects. They'll invest in companies of all sizes, including large, medium-sized and smaller companies.

The fund has a performance fee. You can find full details of this in the Key Investor Information Document.

question mark Manager Track Record Based on HL Quantitative Research

  • BNY Mellon UK Income GBP Inc
  • FTSE All-Share TR
  • JOHCM UK Equity Income B Acc
  • FTSE All-Share TR
FROM: TO:


Fund Track Record

23/10/15 to 23/10/16 23/10/16 to 23/10/17 23/10/17 to 23/10/18 23/10/18 to 23/10/19 23/10/19 to 23/10/20
Annual return 7.15% 21.29% -5.11% 6.14% -27.57%

Please remember past performance is not a guide to future returns. Where no data is shown, figures are not available. This information is provided to help you choose your own investments, remember they can fall as well as rise in value so you may not get back the original amount invested.

Fund Management Group Comment

In 2011 BT Investment Management Limited (BTIM), an Australian-listed fund management group, completed its acquisition of JO Hambro Capital Management (JOHCM). There have been no changes in the day-to-day operations, and JOHCM now operates as a stand-alone boutique within the BTIM group. The fund managers continue to have full discretion regarding investment decisions.

JO Hambro was launched in 1993 by James Hambro and Christopher Mills. Every JOHCM fund has a predetermined maximum amount of money it will accept, and once it reaches that size it is closed to new investors. We feel this is generally positive for existing investors, as it keeps the funds nimble enough to react quickly to market developments, and allow the fund managers to focus on delivering sustained outperformance.

Information about the fund

Fund manager biography

manager photo
Manager Name: James Lowen
Manager start date: 30 September 2004
Manager located in: London

James co-manages the JOHCM UK Equity Income Fund, alongside Clive Beagles. James is a qualified Chartered Accountant and joined Newton Investment Management in 1998 as a member of their Research Department. At Newton, he was an Investment Director, a member of the UK Policy Group (responsible for setting up the UK Equity Strategy) and the Investment Committee, and was Investment Leader for corporate governance issues. James holds a first class degree in Economics from the University of Exeter and is an associate member of the Institute of Investment Management and Research.

manager photo
Manager Name: Clive Beagles
Manager start date: 30 September 2004
Manager located in: London

Clive co-manages the JOHCM UK Equity Income Fund, alongside James Lowen, and is one of the UK's most highly respected equity income managers. Prior to joining JOHCM, Clive worked at Newton Investment Management as Investment Leader, UK Equities and managed the successful Newton Higher Income Fund for three years. Clive holds a BA (Hons) in Economics and is an associate member of the Institute of Investment Management and Research.

Data policy - All information should be used for indicative purposes only. You should independently check data before making any investment decision. HL cannot guarantee that the data is accurate or complete, and accepts no responsibility for how it may be used. Benchmark data provided subject to this disclaimer.
You can buy or sell holdings in this fund through a Stocks and Shares ISA, Lifetime ISA, SIPP or Fund and Share Account