123. Why boring investments can be the most rewarding

Brendan Gulston, co-manager of LF Gresham House UK Multi Cap Income, explains how the fund still managed to yield 3.3% last year, despite UK dividends falling 44%. He also tells us why he avoids some cyclical areas, why actuaries and insurance can be interesting investments and how his small, mid and private equity heritage helped identify a company to invest in at IPO. Brendan closes the interview with his views on the growing market for renewable energy storage.
Apple Podcast Spotify Podcast

LF Gresham House UK Multi Cap Income is a concentrated UK equity income fund with a bias towards smaller companies. The fund targets an initial yield of 4% and parts of the market, such as oil and gas, mining and property are ignored. Instead, the firm concentrates its resources on areas where it thinks it has an edge. The fund could be attractive to those looking for a combination of capital appreciation and a growing income.

Read more about LF Gresham House UK Multi Cap Income

What’s covered in this podcast:

  • How the fund’s yield only fell 17% last year when the UK market’s yield fell 44% [0:17]
  • Why the managers avoid some cyclical sectors [4:55]
  • Why actuarial consultancy business XPS is an attractive investment [7:16]
  • Why Randall & Quilter, the specialist insurer, is a top ten holding [10:38]
  • How the managers’ small, mid and private equity heritage helped them invest in a kettle control business at IPO [12:42]
  • Why the structural growth trend of renewable energy and its variability led the managers to invest in Gresham House Energy Storage fund [15:51]
This article is provided for information only. The views of the author and any people quoted are their own and do not constitute financial advice. The content is not intended to be a personal recommendation to buy or sell any fund or trust, or to adopt a particular investment strategy. However, the knowledge that professional analysts have analysed a fund or trust in depth before assigning them a rating can be a valuable additional filter for anyone looking to make their own decisions. Past performance is not a reliable guide to future returns. Market and exchange-rate movements may cause the value of investments to go down as well as up. Yields will fluctuate and so income from investments is variable and not guaranteed. You may not get back the amount originally invested. Tax treatment depends of your individual circumstances and may be subject to change in the future. If you are unsure about the suitability of any investment you should seek professional advice. Whilst FundCalibre provides product information, guidance and fund research we cannot know which of these products or funds, if any, are suitable for your particular circumstances and must leave that judgement to you. Before you make any investment decision, make sure you’re comfortable and fully understand the risks. Further information can be found on Elite Rated funds by simply clicking on the name highlighted in the article.

More Episodes