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LF Majedie UK Income Class X - Income (GBP)

Sell:130.04p Buy:130.04p Change: 0.01p (0.01%)
Prices as at 5 March 2021
Change: 0.01p (0.01%)
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 5 March 2021
Change: 0.01p (0.01%)
Prices as at 5 March 2021
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 »

Mark Wharrier has a lot of experience working on equity income funds and has the support of the Majedie UK team. We think this is a good thing, but we'd like to see how he'll run the fund and whether he'll make significant changes to the team's investment process.

For this reason we don't think the fund is one of the best options for new investments in this sector at the moment.

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

Wharrier's managed the fund since November 2018. He was lead manager of the BlackRock UK Income Fund from November 2013 to July 2017, but we'd prefer to see him build a longer record before considering the fund for the Wealth 50.

Investment Philosophy

Wharrier and the Majedie team look for companies going through change, which could improve their future prospects . They're prepared to be patient while these changes take place, and focus on companies that pay an attractive income while they wait..

Process and Portfolio Construction

The manager invests in companies that already produce lots of cash or that he expects to produce lots of cash in the future. He makes sure the companies don't carry too much debt and their shares aren't at levels he considers expensive.

Wharrier seeks companies run by sensible teams, which are changing for the better. If the change is successful, the company's share price could rise. They invest in a fairly small number of companies. This means each investment can have a big impact on performance, but it increases risk.

The fund's charges are taken from capital, which increases the yield but reduces the potential for capital growth.

question mark Manager Track Record Based on HL Quantitative Research

  • BlackRock UK Income D Acc
  • IA UK Equity Income
  • LF Majedie UK Income X Acc
  • IA UK Equity Income

Fund Track Record

05/03/16 to 05/03/17 05/03/17 to 05/03/18 05/03/18 to 05/03/19 05/03/19 to 05/03/20 05/03/20 to 05/03/21
Annual return 10.19% 4.33% 5.53% -7.49% -0.78%

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

Majedie Asset Management is an investment boutique founded in 2002. Traditionally they have focused on managing money for institutional investors, so are not well known to retail investors. However, they have grown steadily over the last decade and have an experienced and stable fund management team who have worked together for many years.

Majedie view each fund's capacity as scarce; they believe investment performance can rapidly suffer from diseconomies of scale if assets under management grow too large. They have limited the available capacity in each of their funds in order to remain nimble.

Information about the fund

Fund manager biography

Manager Name: Mark Wharrier
Manager start date: 5 November 2018
Manager located in: London

Mark Wharrier is a fund manager and analyst with 24 years' investment experience in UK and international equity markets. Mark is responsible for co-managing the UK Income Fund. Before joining Majedie in 2018, Mark was a fund manager at Troy Asset Management for a year after joining BlackRock as managing director in 2013, responsible for over £1 billion in the BlackRock UK equity income fund. Prior to that, Mark was a partner and fund manager at NewSmith Capital Partners, working on the UK Equity team. Mark originally joined Mercury Asset Management's UK Specialist Equity Team (subsequently acquired by Merrill Lynch, now BlackRock). He holds a Bachelor of Arts degree in Economics, History and Management from the University of Durham. He has the ASIP qualification and is an Associate Member of the CFA Society of the UK.

Manager Name: Mike Totton
Manager start date: 1 July 2019
Manager located in: N/A

Mike Totton is a fund manager and analyst with 6 years' investment experience in UK and international equity markets. Mike is responsible for co-managing the UK Focus Fund and the UK Income Fund. Prior to joining Majedie in 2013, Mike worked in finance in RBS Markets & International Banking, specialising in equity and fund derivatives. Mike qualified as a Chartered Accountant with Deloitte, which he joined in 2009. He holds a Bachelor of Arts degree in Economics from St. John's College, Cambridge and is a CFA charterholder.

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