Investing
5 min read 6 Oct 23
Following upcoming changes to the Liontrust UK equity fund we have removed the fund from our Hybrid model portfolios. We added the M&G Dividend fund to portfolios, alongside the existing allocations to the LF Lindsell Train UK Equity Fund and Fidelity Index UK Fund.
Liontrust recently announced changes to the Liontrust UK Equity fund. Previously, the fund was run by multiple managers and invested in different styles and company sizes across UK equities. Two of the managers are intending to retire, and the fund will be run by a single manager in the future. The fund’s investment approach will change to a more concentrated, ‘growth’ titled strategy.
We believe this significantly changes the fund’s profile and have removed the fund from our Hybrid model portfolios. If we had retained the fund, it would have made the UK equity exposure less balanced and significantly underweight the ‘value’ style.
We have added the M&G Dividend Fund to portfolios, alongside the current holdings in LF Lindsell Train UK Equity and Fidelity Index UK. The investment strategy of the M&G Dividend fund is to identify companies with strong business franchises and good dividend growth prospects. This means the fund, while still tilted to a ‘value’ style, does not tend to invest in the highest yielding stocks which are more ‘deep’ value companies. The fund is run by Michael Stiasny, an experienced and high quality large company income investor who also leads the UK Equity team at M&G Investments.
The M&G Dividend Fund blends well with the LF Lindsell Train UK Equity Fund. In contrast to the M&G Dividend Fund, Lindsell Train has a bias to growth and defensive business.
This change was made in our Hybrid model portfolios on 5th October 2023. The fund was not held in our Passive or Global ESG Themes model portfolio ranges.
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