What a difference a year makes

Volatility has become the market norm in the second half of 2007, but whereas small and mid-cap stocks were making all the running at the beginning of the year, those investors who kept faith with large cap investments are starting to see their patience rewarded.

Investors in Rensburg’s UK Equity Income Trust in particular have been enjoying some seasonal good cheer as their fund demonstrates that it has far from lost its appeal.

Colin Morton, Rensburg Fund Management’s Investment Director and manager of the UK Equity Income Trust portfolio commented: “Given the long overdue out- performance of large caps relative to both mid and small cap stocks it’s scarcely surprising that the funds hurt most by recent volatility have been those with above average small and mid cap exposure. Our UK Equity Income portfolio with its proven investment style, investing predominantly in FTSE 100 stocks, is a solid, core fund that is more than proving its worth against its sector in these conditions.”

The manager is in his thirteenth year of running the fund and has the rare advantage of doing so alongside the same investment team.

The fund’s exposure to FTSE 100 stocks currently stands at 83% and will not fall below 70%. The prospective estimated yield to August 2008 of 4.14% is above the forecast yield for the FTSE All Share.

Colin Morton continued: “For people looking for income the dividend growth record of the fund is excellent, but perhaps more importantly the portfolio is well-positioned to produce good total returns over the medium to long term.”