Chillingworth repositions fund for move into Equity Income sector

Rathbones is preparing to move its Income and Growth fund into the UK Equity Income sector. At pre...

Rathbones is preparing to move its Income and Growth fund into the UK Equity Income sector.

At present Julian Chillingworth’s £45m fund sits in the UK All Companies sector, but the manager has been repositioning the portfolio with a greater bias towards large caps.

Chillingworth is not fully invested yet and is sitting on a cash position, but his aim is to put around 70% of the portfolio in FTSE 100 stocks. When he reinvests his cash back into the market, the fund will meet the IMA’s yield requirements for inclusion in the sector.

Head of marketing David Holloway said: “The fund has a record of increasing its dividend over 14 years so it meets the income criteria for the sector. The idea is to move it up the market cap scale and add more FTSE 100 stocks so it is more parallel to the Income and High Income funds.”

As at the end of July, Income had 51% in FTSE 100 stocks and High Income had 58%.