As the Bloxham Elite Global Equity Income Fund approaches its second birthday, the Dublin-based manager has reported a year on year leap in value of 48 per cent.
Currently yielding four per cent, fund manager Pramit Ghose (pictured) has now set his sights on growing the fund’s dividend stream by eight per cent in 2010.
This is on the back of dividend growth of six per cent for 2009.
As the UK Bank of England base rate remains at historic lows, the global equity income sector is now one of the best games in town for income-starved investors.
“There are not many investments where you can get a decent income that can grow year on year and provide long term capital growth,” says marketing director Shane O’Neill.
In order to help maximise dividend returns, Ghose has moved to an overweight position in the insurance sector.
“Both Zurich and Allianz, for example, have posted good numbers recently, with Zurich increasing its dividend by 45 per cent,” says O’Neill.
The fund also holds weightings in engineering stocks – Ghose recently bought into one of the leading market performers, United Technologies, and topped up his holdings in Illinois Tool Works
Also up is the fund’s exposure to US stocks, which now stands at 32 per cent.
“We have been saying for some time that quality global companies would get re-rated after the ‘dash for trash’ trade of 2009. This is exactly what is happening currently and our fund is fully benefiting from this. We see this continuing throughout 2010 and beyond. Companies we hold such as Nokia, P&G, Accor, Air Liquide, Allianz, Ilinois Tool Works, Coca Cola, PepsiCo and Zurich Financial Services have all posted good numbers over the last month or two,” adds O’ Neill.