Please enjoy this video with Ian Lance who is a Portfolio Manager at Redwheel Asset Management. Ian runs the Redwheel UK Equity Income Fund which we allocated to in January this year. It is one of our smaller “satellite” allocations within the MPS models as it is a punchy strategy that can take very different views from the benchmark. Ian has benefited this year from owning “turnaround” companies such as Marks and Spencer and also owning cheap companies (such as Natwest and Standard Chartered) which are buying back their stock (as they generate positive returns for shareholders). Despite having had an extremely good year, Ian’s Fund trades on less than 9x earnings. This is a big discount to the wider UK market (at c12x earnings) and of course the wider Global market (which trades at c21x earnings). Hence most of the performance this year has been driven by earnings growth (companies within the Fund making more money) as opposed to a re-rating.

Rory McPherson
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