LF Gresham House UK Multi Cap Income Fund

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The LF Gresham House UK Multi Cap Income Fund aims to deliver a return of income with the potential for capital growth. The Fund passed its three year anniversary on 30 June 2020 and is proud to be the best performing Fund in the IA UK Equity Income sector*

Investing across the market cap spectrum, with a particular focus on UK listed small and mid-cap companies, the Fund’s differentiated approach is designed to drive strong long term, risk-adjusted returns with low correlation to competitors, leveraging our fundamentals-based stock picking expertise.

*Source:  Gresham House and FE Analytics, based on the IA UK Equity Income sector over three years, as at 30 September 2020
Past performance is not necessarily a guide to future performance. Capital at risk.

Meet the managers

“The resilience and sustainability of dividends
has never been more important for
UK Equity Income investors“

Ken Wotton, Managing Director, Public Equity

Reasons to invest

Stable income		Consistent top performance		Designed to diversify		Low volatility
Sustainable dividend cover through investment in profitable, high-quality, cash generative businesses.		Top quartile fund, outperforming the IA UK Equity Income sector*		Low correlation to its peer group, a diversifying source of income for your portfolio. A high-conviction portfolio, we avoid cyclicals.		Our fundamentals-focused investment style provides relative shelter from market volatility. The Fund currently has the second lowest volatility in the sector.

*Bloomberg and Link as at 30 September 2020
**Source: Gresham House and FE Analytics, based on the IA UK Equity Income sector, as at 30 September 2020
Past performance is not necessarily a guide to future performance. Capital at risk

How has the Fund measured up to its objectives vs its peers?

Since launch*, the Fund has returned 22.45% against -13.54% for the IA UK Equity Income sector.

* Fund launch: 30 June 2017.
**Source: Gresham House and FE Analytics, based on the IA UK Equity Income sector, as at 30 September 2020

Past performance is not necessarily a guide to future performance. Portfolio investments in smaller companies typically involve a higher degree of risk. Capital at risk

How does our process ensure the Fund is positioned to tackle the challenge of the current market?

• To achieve a diversified source of income in UK Equities, we look beyond the traditional FTSE 100 holdings and focus on micro, small and mid-cap companies
• We focus on high-quality businesses with stable and growing earnings streams, strong cash flow and dividends
• The Fund offers investors an attractive annual dividend yield of 3.6%**
• We operate a high-conviction portfolio avoiding cyclicals, such as oil and gas, mining and property, and focus our resources on areas where we believe we have an edge
• We use Gresham House’s proprietary network of sector and functional experts, business owners, private equity practitioners and advisers to generate new ideas and undertake in-depth due diligence on potential investments

* Based on worst case scenario, source: www.linkassetservices.com/our-thinking/uk-dividend-monitor-q1-2020
** Source: Bloomberg and Link as at 30 September 2020

Since the onset of COVID-19, how has the pandemic affected the equity funds?

Ken Wotton speaks to Portfolio Adviser about how the Gresham House equity funds are positioned during these challenging times and how they have fared. After a period of brutal performance following the market sell-off, Ken describes his team’s defensive positioning, virtue of their sector focus, rigorously consistent investment process and cash weighting.

Hear more detail about how the team has re-balanced the portfolio based on a rapid risk assessment of how the crisis would play out and what opportunities they are now seeing in the current environment.

Watch the interview >>

Key milestones since launch