Martin Currie European Equity Income fund adjusts mandate

Martin Currie’s European Equity Income fund is revising its mandate towards yield in excess of that of the MSCI Europe ex UK index, as well as the potential for capital growth.

Director Alan Burnett said the change is part of Martin Currie’s ongoing strategy to manage the right funds to meet client needs, and shareholders have shown “overwhelming support” for the change.

The European equity income mandate gives a current forecast yield of 5.2%. European companies are increasingly paying dividends and now represent more than half of the 100 highest-yielding companies in the MSCI World index. “This fund provides investors with a regional building block that benefits from a broader investment universe than the UK and offers the potential for returns from both growth and income,” said Burnett.

The £22m fund is now managed by senior investment director Ross Watson, who runs over £300m in a range of income strategies for institutional clients. The fund is a 40-60 stock, multi-cap portfolio which invests primarily in equities of companies listed in continental Europe. Its benchmark is the MSCI Europe ex UK index.

Watson said the adjustment gives him freedom to invest in the best opportunities across the whole of Europe. “Europe remains an area rich in opportunities for stock-picking investors. Valuations are currently pricing in much of the negative newsflow and are reasonably attractive.”

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