237. Hunting for profits in UK Equity Income

Sid Chand Lall, manager of the IFSL Marlborough Multi Cap Income fund, talks to us about finding income opportunities in the UK's smaller – but growing – companies. He describes how he finds profitable companies and explains how dividends can help offset the erosion caused by inflation. Sid also highlights one smaller company and two medium-sized ones in the portfolio: Ricardo Plc, Paragon Banking Group and Drax Group.What’s covered in this episode: Understanding the Investment Association’s “yield test”How the manager finds profitable companies for the portfolioHow dividends can help offset the impact of inflationWhy investors should consider UK equity income over UK gilts Why the fund tends to be overweight small and medium companiesWhy UK mid-caps outperform when the dollar weakensSid highlights one smaller company holding…Ricardo a global engineering, environmental and strategic consultancy, based in West SussexAnd two mid-cap holdings: Paragon Banking Group, a financier of buy-to-let mortgages andDrax Group, the UK’s biggest biomass generator.  More about this fund:The team behind IFSL Marlborough Multi Cap Income fund are specialists in UK smaller companies investing, so this multi-cap fund offers something radically different to the majority of large-cap, FTSE 100-focused, UK equity income funds. It aims to combine fast and sustainable dividend growth with capital appreciation. The fund uses a blend of ‘value’ and ‘growth’ holdings to meet its yield objective.Learn more on fundcalibre.comPlease remember, we’ve been discussing individual companies to bring investing to life for you. It’s not a recommendation to buy or sell. The fund may or may not still hold these companies at the time of listening. Elite Ratings are based on FundCalibre’s research methodology and are the opinion of FundCalibre’s research team only.Learn more on fundcalibre.comPlease remember, we’ve been discussing individual companies to bring investing to life for you. It’s not a recommendation to buy or sell. The fund may or may not still hold these companies at the time of listening. Elite Ratings are based on FundCalibre’s research methodology and are the opinion of FundCalibre’s research team only.